âNegative reinforcement is when a certain stimulus/item is removed after a particular behavior is exhibited. The likelihood of the particular behavior occurring again in the future is increased because of removing/avoiding the negative stimuli. Negative reinforcement should not be thought of as a punishment procedure.
In addition to the annual exclusion, you're allowed to give away a certain amount during your lifetime without actually having to pay any gift taxes. As of the time of publication, you can give away $5,430,000 before you start owing gift taxes. For example, say you haven't made any taxable gifts in the past.
(If there were no gift tax, then anyone could completely avoid the estate tax by giving everything away just before death.) Under current law (for deaths in 2016), each of us can give away or leave up to $5.45 million without owing federal gift and estate tax. So, for example, if during your life you give your children your house, worth $1 million, plus another $4 million in stocks and bonds, no federal gift tax will be due.