It’s time to work on your 2019-2020 gifting plan if you haven’t started yet. As you plan, remember that the annual exclusion lets you make gifts up to $15,000 in 2019 to any number of individuals without having to pay gift tax or file a gift tax return.

If you decide to gift money to a child or grandchild for education expenses, the $15,000-per-person annual gift limitation does not apply if a payment is made directly to a qualifying educational institution. Not only are gift tax limitations removed, making substantial education payments in this manner could also reduce your taxable estate — ultimately reducing your exposure to estate taxes.

Don’t forget that your direct education gift can be for a grandchild, niece, nephew, or anybody else of any age, either related or unrelated.

Let us exceed your expectations! Contact Jill at (888) 388-1040 to learn more.