Gift tax rule problem?

I have 1 brother(no kids), 4 sisters(2 have no kids). My mom received an inheritance. She would like to give all her kids and her grandkids 12000 each. I have 2 kids. Prior to this my brother and sisters with no kids wanted to give money to their nieces and nephews. If my mom gives money to all of us and we in turn give money to the kids/nieces nephews how will the government view the transactions. A gives to B, C and D and then B and C also give to D. Do we avoid the gift tax rules or open a can of worms.

Gift tax rule problem?
Read this


http://taxipay.blogspot.com/2008/03/us-g...
Reply:In your example, the IRS sees $36K leaving mom's bank account and ultimately $36K landing in D's. Using form over substance, the IRS sees that mom made a $36K gift and she needs to file form 709 and track the taxable portion of $24K. (She doesn't actually pay tax until she hits $1,000,000 in taxable gifts.)

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