The gifts must meet the criteria for gifts, which means that the transfers must be made without the person making the transfer receiving any value in return.
Intent is irrelevant to the gift tax law.
There is a lifetime limitation to these types of gifts. This means that, when the limit is reached, any gifts made even if meeting the criteria of a gift, are taxed. Thus, it is apparent that the laws governing gift taxes were established to prevent an estate from avoiding death taxes by making gifts of assets prior to the decedent's death. Even though a person can make non- taxable gifts prior to one's death, there are limits over which the gifts are taxed. Once the total amount of lifetime gifts reaches this amount, gift taxes are incurred.