Investopedia explains 'Annual Exclusion'
The annual exclusion has no limits on the number of persons that can receive this amount each year. For example the annual exclusion for 2011 was $13,000. This means that a wealthy individual might, for example, gift $13,000 to ten different people in one year without incurring a gift tax. Also, married couples can combine each partner's $13,000 annual exclusion amount to gift up to $26,000 per individual, or up to $52,000 per couple, every year. This gifting strategy is often used to reduce the size of one's taxable estate.
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