@bk591
there is no gift tax to be paid either now or in the future, unless your estate is over around $12 million ( @Opus 17 says 'around $11mm but the number increases with inflation and is technically $12.06mm this year), so we are both "in the ball park".
You can think of what is occuring like this: your son is inheriting some of your estate while you are still alive. So while you can currently have an estate of $12mm and there is no inheritance tax, in this case, since you are giving your son $250,000 now, you can have an estate of $11.75mm and there is no inheritance tax. you estate has simply advanced some of the asssets now instead of later.
THe IRS requires you to report this gift of $247,000 (less the $16,000 annual gift that does not require reporting). It's just reporting - in case your estate is large upon death - for most it's not that large!. There is no tax for you to pay nor is there tax for your son to pay. It is just reporting against a future event.
