Evading the gift tax

[TaxNewbie]

What is the name of your state (only U.S. law)? Texas

My grandmother recently sold a property and wants to gift each of her children $120k. Since their is an annual exclusion on gifts of only $13k, my mother wants to set up a joint account with me, my sister, and her husband to funnel $60k for the next two years where she can withdraw money. She would be the only person withdrawing this money.

This seems HIGHLY illegal to me and I want clarrification that it is or isn't.

I've done some research but would like a clearcut answer to my situation. I know that there is a $1 million dollar lifetime exclusion on gift taxes. Could my grandmother just gift my mother the full $120k without her having to pay taxes? Also, would this eat into her estate?

Thanks!

[tranquility]

$1 million lifetime exemption. No gift taxes paid until then. Amounts over $13,000 paid to a single person in a year must be reported to the IRS so they can track the amounts. In general, there is a reduction in estate tax-free transfer amounts for the gift amounts. (Kinda)

Doing things to circumvent the law is a crime. If the gift was to one person, but an account is set up to make it appear to have been given to more, that would be an attempt to circumvent the law.