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For those of you who have relatives wanting to help you pay for your child's education, realize that they can gift unlimited amounts to your child for educational purposes by paying the school directly. Won't work for us, but maybe a win win for someone out there. The guy who said he was helping to fund his nieces and nephew's college accounts comes to mind. Paying directly is one way to avoid the assets being viewed as the student's by FAFSA.

At Eldest's school, he has "authorized" us to have access to pay towards his account. Don't know if that is required at every school. Even banks will take deposits from people not on the same account.

IP


In addition to the annual exclusion amounts, you also can give the following without triggering the gift tax:

...

Gifts of educational expenses. These are unlimited as long as you make a direct payment to the educational institution for tuition only. Books, supplies and living expenses do not qualify.

...


http://finance.yahoo.com/news/2012-2013-estate-tax-gift-0801...
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