And if Dad is still married, the wife can also make a similar gift on her behalf.
What Ldij is telling you are the FEDERAL rules. New Jersey doesn't have a gift tax. He's free to give away things without worry about state taxation issues. New Jersey's estate tax exclusion is much lower than the feds, it's only currently $675,000.
Hopefully this is money that Dad does NOT need. If he is needing medicaid services, such gifts could disqualify him from eligibility.