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Avoid the Gift Tax—Use the Tuition and Medical Strategy

February 11, 2020

Are you going to have to pay gift and estate taxes?

It you’re certain that you won’t have to, you may be dead wrong!

You see, you may think that you don’t have a problem because your gift and estate taxes come to less than $11,580,000. (Or $23,160,000 for a married couple.)

But here’s the reason
you may be in for a shock…

Lawmakers have already voted
to drop the current gift and estate tax rates
by 50% in 2026!

What’s more, the government’s serious deficit problems could trigger a drop back to the 2008 exemption rate of $2,000,000 or lower!

But there’s good news too!

We’ll explain a winning strategy that can help you

Avoid the Gift Tax—
Use the Tuition and Medical Strategy
.

Three ways our fact-filled article can help you:

  1. You’ll learn how to beat the gift tax by paying your loved one’s tuition. The tuition exception to the normal gift-tax rules involves direct payment of tuition (money for enrollment) made to an educational organization on behalf of another individual. You’ll get the whole story when you read the full article.
  2. You’ll learn how to beat the gift tax by paying medical bills directly to the provider. Using this strategy, you avoid gift taxes when you pay any medical expense that would qualify as an itemized deduction on your Form 1040. We’ll make everything clear when you read the full article.
  3. We’ll tell you the key takeaway message you need to remember. If you have a loved one who needs tuition or medical help, use the tax-strategy described in this article. Most important: Don’t make a monetary gift directly to anyone you’re helping. Even if you don’t have a gift-tax problem today, use the tax-free method starting now and avoid problems tomorrow. Who knows? You might come into a lot of money tomorrow! You’ll get all the details when you read the full article.

Filed Under: Estates, Gifts, Parents, Records, Relatives, Tax Planning

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