There is an inheritance tax when someone passes away and is worth over a given amount. Let's say $6,000,000. When a gift is made, then anything over the annual limit (say $15,000) is then recorded to reduce the Inheritance tax limit.

In this case $200.000 is $185,000 over the $15.000. This mean upon death the limit for inheritance tax is $6,000,000 -$185,000 = $5,815,000. 

Is this hypothetical person worth anywhere near $6M? Do they want to have a will probated?  

P.S. I am cheap, so I do the 709 as a demo, then plug the numbers into a fillable pdf and mail it.