This was possible in the early days shortly after the estate tax was enacted back in 1918. Pro-tax lawmakers were able to get a gift tax enacted in 1924, but the other side pushed back, and it was repealed in 1926.
In 1932, it was reenacted, and it has been in place continuously since that time. The gift tax and the estate tax are unified under the tax code, so the multimillion-dollar exclusion applies to your estate and large lifetime gifts that you give.
However, there is an additional annual gift tax exemption. You can give up to $15,000 to an unlimited number of people in a given calendar year free of transfer taxes.
There is no limit to the amount you can give as long as no one person receives more than $15,000 in a particular year. If you are married, you and your spouse could combine your annual exclusions to give as much as $30,000 to any number of people each year tax-free.
There is also an educational exemption that can be used to pay school tuition for others in a tax-free manner. You can use the medical exemption to cover medical bills for others without incurring any tax liability, and this includes health care insurance.