Story Source: Forbes ~ Go to Original Article
A 2018 Forbes article reported that the cost of college education is increasing almost eight times faster than wages in the United States. As these numbers continue to rise, it’s not surprising that many people are looking for assistance to defray education-related expenses. If you have adult children, partially funding your grandchildren’s education can be a great way to financially assist them without triggering the gift tax.
Gifting a large sum of money can incur a 40% gift tax. There’s also a generation-skipping transfer (GST) tax of 40% for any gift made directly to your grandchildren in excess of $11.4 million ($22.8 million for married couples, in 2019). Fortunately, there are strategies available that can allow you to help your children financially while avoiding a hefty tax bill..……………….……………………..