You can give up to $15,000 annually to anyone you want tax-free. So, if you and your spouse each give $15,000 to three children and two grandchildren, you can give away $150,000 annually. This is a great way to reduce the size of your estate. Other ways to reduce your estate include use of the Irrevocable Life Insurance Trust, the Qualified Personal Residence Trust, the Grantor Retained Annuity Trust, an Intentionally Defective Grantor Trust, the Family Limited Partnership, and the Charitable Remainder Trust.