Here is the way to assist your kids or grandkids with their college education: Pay tuition directly to the school.

The payment is nontaxable to the student, it does not count against the $15,000 annual gift tax exclusion, and it reduces your estate.

The same can be done for direct payments to a doctor or hospital to cover a donee’s medical expenses.

Contribute to a 529 plan. You can shelter from gift tax up to $75,000 in contributions per beneficiary this year ($150,000 if your spouse agrees).

If you put in the maximum, you’ll be treated as gifting $15,000 (or $30,000) to that beneficiary in 2020 and in each of the next four years 2021 through 2024.

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