[mindslight]

Except if you give over the $17k/person, then you're supposed to file a federal 709 to report and track the lifetime amount, and if you're lucky enough to have estate tax it will add to that. Whereas if you're under the annual exclusion, there is no paperwork. So the vast majority of people want to just stay under the annual exclusion amount. If someone needs more than $17k this year, call the rest a loan and you can choose to forgive it next year.

[jcheng]

Technically a loan requires even more paperwork, I think? And you have to charge interest, even if you then forgive it (which also counts as a gift) you are required to first go through the motions. https://www.schwab.com/learn/story/family-loans-should-you-l...

[mindslight]

Yes, I misspoke when I said "there is no paperwork". The difference is that the loan paperwork does not have to be filed with the IRS, whereas a 709 does.

These laws fundamentally exist to constrain how much wealth can be passed down outside of estate tax, which is the main concern of the article you have linked. If you don't quite cross all of the t's when giving a loan to an older family member (which is the complete opposite of trying to push wealth forwards in time), it's unlikely the IRS is going to be too concerned.