Article Date:
February 2020

Word Count:



Avoid the Gift Tax—Use the Tuition and Medical Strategy

If you or a well-off relative is facing the gift and estate tax, here’s a planning opportunity often overlooked: pay tuition and medical expenses for loved ones.1


Such payments, structured correctly, do not represent gifts.


The monies spent by you on the qualified medical and tuition payments reduce your net worth and taxable estate, but they do no harm to your income, gift, or estate taxes.


Further, the loved one who benefits from your help does not incur any tax issues.


As unusual as this sounds, with the tuition and medical payments, you operate in a tax-free zone. ... Log in to view full article.

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