How do I gift money to my children without paying taxes?

Keep your gifts under $10K annually.

Actually, the annual limit is up to $12,000 per year. Plus, that is PER GIVER PER GIFTEE.

Example: A wealthy couple wishes to start transferring some assets to their only son, who is married with five children.

The FATHER can give $12K to his son, $12K to the son's wife, and $12K to EACH child, for a total of $84K.

The MOTHER can do the same, transferring ANOTHER $84K.

TOTAL TRANSFER: $168K, and NOTHING has to be reported.

I vaguely remember the limit being upped, but wasn't sure. I figured someone would correct the amount, thanks.

And yes, the limit is per person per gift, so a married couple can can each give $12K to each person.

How do I gift money to my children without paying taxes?

Read more about gifts exclusion and gift tax return
Read Your U.S. Tax Return: The U.S. Gift Tax (http://taxipay.blogspot.com/2008/03/us-gift-tax.html)