Yes. In fact it is a good idea in most estate planning situations, provided that you are sufficiently financially secure. Any amount under the exemption amount (currently $13,000, per year, per person) will pass without tax. Ultimately, when you pass, any amount gifted away in such a manner will be exempt from the Estate Tax.
Keep in mind, however, if you are planning to give inheritance to anyone else and are concerned that each party gets his/her proper share, then you need to designate that the money you are paying out to your adult child are advancements and not gifts.
If you have similar questions, contact Naples Attorney Brantley Oakey today.