How to reduce tax if you win the Lottery .(reduce your estate tax.) Gift the money to your sons, daughters and grandchildren

You don't say how large your estate is, but unless it is over $3,500,000 or you plan on gifting more than a million dollars, I would just give your son the money and file the form 709. You would owe no gift tax and your son would not have to report it as income. A problem could develop, if say for instance, your friend who may not have an estate problem now, wins the lottery or inherits money. Both instances are probably unlikely, but if it happened your friend might have to suddenly account for the gifts he made in the past. I doubt if would paper trail back to you, but why take the chance. If you are married you can each give a $13,000 gift, or give him $13,000 now and $13,000 January 1st. You could give him $500,000 if you wanted to. All that would happen is you would file form 709 and show you used $487,000 of you lifetime gift allowance. Again you would pay no gift tax and you would have reduced the value of your estate by $500,000.