Yes, there are certain exclusions from gift tax. The current annual gift tax exclusion pursuant to the IRS is $15,000 per person or $30,000 per married couple. In other words, each individual has the right to gift $15,000 ($30,000 for married couples) in any calendar year to any number of persons. For example, a family with two children who are married and each child has three children, the total amount the individual can gift annually is $150,000. If the individual is married, the total amount of the annual gift will be $300,000. This amount can significantly reduce an individual's estate for tax purposes if an annual gifting program is instituted. Other gifts excluded from gift tax are unlimited payments on behalf of another person made directly to a provider of educational services for tuition or to a provider of medical services. An individual can reduce his total assets and eventual tax liability by paying a grandchild’s college tuition, or nursery school bills directly to the educational institution. Hospital or doctor bills paid by the individual directly to a hospital or doctor on behalf of another person also carry no gift tax consequences. The most significant exception to gift and estate tax is the marital deduction. The marital deduction allows each spouse the right to give an unlimited amount of assets during life or after death to the other spouse who is a U.S. citizen without any estate or gift tax consequences.