[natdempk]

Pet peeve of mine: The lifetime exemption limit is absolutely critical information to include when talking about the gift tax in any context because otherwise people take it to mean something completely incorrect. In my experience, the yearly limit being the limit before taxes kick in is one of the most common misconceptions about gift taxes and your comment above basically phrasing it as "maximum allowable gift amount each year" continues this misconception.

I don't mean to be hostile, but I really think its much better phrasing the limit as ~$12 million before being taxable, and just mentioning that you have to report it on your taxes above a certain limit in a given year and that it eats into a lifetime ~$12 million exemption. I basically see people get this wrong any time they mention it on the internet or in real life. I can see though in writing this it does get a bit confusing to say succinctly.