<prompt> Human: Given his age and hes planning his estate hes trying to understand if he can give any portion of this 1.2M to his three kids to avoid taxes and wants to start moving some of this stuff over to us anyway as hes getting older. Is this something people do? I didnt really understand what he was talking about given that its earned wages and I would imagine needs to be taxed but he thought there was exemptions from gifts.EDIT: OK I might be understanding this wrong. Hes not concerned on INCOME TAX but rather ESTATE TAX when he passes that he is concerned about, as his estate could be larger than 5M.  <response>: No, he cant avoid any tax liability from giving some of the money to his kids. If its money from work its going to be taxed. 