Making substantial gifts during one's lifetime can have tax implications, as gifts exceeding certain limits may be subject to gift tax. In 2023, the annual gift tax exclusion allows individuals to gift up to $17,000 per recipient or $34,000 for married couples without triggering gift tax. Additionally, there is a lifetime limit for tax-free gifts, currently set at $12.92 million for individuals or $25.84 million for married couples. Understanding these tax rules is crucial for individuals considering lifetime gifts to ensure compliance with federal and state regulations.