GIFT TAX EXCLUSION FOR EDUCATION & MEDICAL EXPENSES

How It's Done

  

Donors may reduce transfer taxes by taking advantage of the unlimited gift tax exclusion for education and medical payments. The relationship between the donor and the donee is irrelevant. Payments must be paid directly to the educational or medical institution or service provider. Payment for education expenses must be to a 'qualifying' institution and the exclusion is subject to certain rules regarding the definition of an education or medical expense.