A lifetime gifting program might trim both your estate and income taxes. First, there’s the annual exclusion for gifts. Currently, you can give $13,000 annually to any number of recipients without paying federal gift tax. Married couples can double this amount by gift-splitting; a gift of $26,000 from one spouse is treated as if it came half from each.
Note that gifts to individuals do not entitle you to an income tax deduction. A gift isn’t a charitable contribution. Conversely, a gift doesn’t constitute taxable income to the recipient. Gifts of income-producing property may, however, reduce your taxable income. Once you’ve given the property away, the recipient receives the income it produces and pays any income tax due on it, rather than you.
One advantage to annual gift giving is that it is relatively simple to do, especially if you’re giving away cash. Another advantage is flexibility. You’re not locked into anything.  You determine how much you can afford to give away each year. Additionally, you can give away anything – cash, stock, art, real estate. Valuation is the fair market value on the date of the gift. Subsequent appreciation, if any, belongs to the donee’s estate, not yours.
Before you give away assets, be sure you will not need them yourself to provide income in later years. Also, consider the impact inflation will have on your resources. Proper planning for gift giving is essential. 
Please contact Simons Bitzer at (317) 782-3070 if you have questions or would like further information.