Medical Care and Tuition Payments

Understanding Direct Payments

By Lawrence E. Howes; CFP™
By Joel B. Javer; CFP™
fp-book

Medical care and tuition payments are either direct payments to a health care provider for the medical care of another person; or direct payments of tuition to an educational institution for another person and are not transfers for gift tax purposes.   

For instance, parents may pay all the college tuition for their grandchildren free of gift tax.  This is limited to tuition, so room and board and other personal expenses are not included. 

Conclusion 

Please opine and comment if you have ever considered or used this strategy; and what was the result?

Book info: http://www.jbpub.com/catalog/0763745790/ 

Linguistics: www.HealthDictionarySeries.com

 

One Response

  1. […] Joshua Schwimmer, MD, FACP, FASN

    The Executive-Post wrote an interesting post today. Here is a quick excerpt by Joel Javer; CFP™.

    Medical care and tuition payments are either direct payments to a health care provider for the medical care of another person; or direct payments of tuition to an educational institution for another person and are not […]

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