In 2014 my wife went and opened custodial accounts for each of our minor children (2 kids with $50,000 put into each account). She did this with the intention of using it as a college fund. I tried to discourage her from doing this but I usually lose these type of arguments (which is why we file separate taxes every year). At any rate I am getting taxes ready this year and am researching around and it seems to me that she should have filed a Gift Tax return (Form 709) and paid tax on the contribututions made into the custodial accounts made in excess of $14,000 (which mean she owes a lot of money).

I am looking for ways in which to reverse this error some way but understand that the "gift" is irrevocable. However I see references to the possibility that the person receiving the gift can disclaim it within 9 months of turning age 21 (the kids are 17 and 18 years old now). Is it possible my wife can get out of filling the gift tax return now with the intent that the gifts will be disclaimed three years hence? Are there any other options to reverse this mistake?