My inlaw wants to gift us each $14000 then wants us to turn around and gift it back to his children. Can we run into problems by doing this favor?

He's trying to get around the limit, but are there consequences to our taxes?  We also have children.  I understand there is a lifetime limit.  Would ours be affected?  He also wants his spouse to gift us $14000 for a total of $56,000/ year