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Unlimited Tuition and Medical Gifting

Unlimited Tuition and Medical Gifting

Additional Excludable Gifts

In addition to the $13,000 annual exclusion amount, unlimited gifts can also be made in the form of tuition or medical expenses, tax free. The gifts can be made on behalf of anyone you choose (not just family), as long as the payments to be excluded from the tax are paid directly to the health care provider or educational institution (IRC Section 2503(e)). These payments are then excluded from both the gift tax and the generation skipping transfer tax.

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