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our grandson is starting college. We would like to help with the expenses. Is there a way we can do this and avoid taxes?
Libertyville, IL
Viewed 12 times.
Posted 23 days ago in Tax
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the question contains all of the necessary details
Answers (1)Steve Fromm
This attorney is licensed in Pennsylvania.
Posted 23 days ago.
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Yes, in addition to using the annual donee exclusion of $13,000 that is available to you and your spouse, you can give an unlimited amount for education without using your lifetime exemption (currently 3.5 million).
There are some qualifiers, such as the amount must be paid directly to the educational institution. To get all the details and discuss your overall goals and assets, you should retain an experienced estate planning attorney in your state. Hope this helps. LEGAL DISCLAIMER Mr. Fromm is licensed to practice law in PA. The response herein is not legal advice and does not create an attorney/ client relationship. The response is only in the form of legal education and is intended to only provide general information about the matter within the question. Oftentimes the question does not include significant and important facts and timelines that if known could significantly change the reply or make such reply unsuitable. Mr. Fromm strongly advises the questioner to confer with an attorney in their state in order to ensure proper advice is received. By using this site you understand and agree that there is no attorney client relationship or confidentiality between you and the attorney responding. This site should not be used as a substitute for competent legal advice from a licensed attorney that practices in the subject area in your jurisdiction and with whom you have an attorney client relationship. The law changes frequently and varies from jurisdiction to jurisdiction. The information and materials provided are general in nature, and may not apply to a specific factual or legal circumstance described in the question or omitted from the question. Circular 230 Disclaimer - Any information in this comment may not be used to eliminate or reduce penalties by the IRS or any other governmental agency. |