Estate and gift tax in 2016

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CPAs and the BP community with input/knowledge/experience with large monetary gifts:

New Estate and Gift Tax for 2016

Sometime in 2016, my wife and I would like to give my parents a large sum of $40-60k as a gift. I understand that we can give a maximum of $28k to each donee for the annual exclusion amount. My wife and I file taxes as dual income, married for Virginia. Ditto for my parents. 

My lack of understanding involves the "applicable exclusion amount for gifts" from the above article, and maybe we're misunderstanding the annual gift exclusion as well. 

For the annual gift exclusion, it seems like we can give each of our parents $28k without any federal gift tax due on our part. Do they need to file the combined $56k as income?

For the applicable exclusion amount of $5,450,000 (2016), it seems like we can give them the entire $60k (or more) since, after subtracting the annual gift exclusion, it would be well under applicable exclusion amount of $5,450,000 (2016). There won't be any federal gift tax for the $60k gift. Is this a correct understanding? Likewise, do they need to file the $60k gift as income?

We do plan on consulting with a lawyer/CPA firm prior to pulling the trigger on this transaction. We are doing out initial research on understanding the process and greatly appreciate any input.

Thank you.