Background Information Lion King - Under IRC Sections 2503(e) (concerning gift taxes) and 2611(b)(1) (concerning generation skipping transfer ("GST") taxes) (hereafter the "IRC exclusion provisions") all "qualified transfers" for tuition or medical expenses are excluded from both gift and GST taxes - if they are paid directly to the educational institution or to the medical care providerigh Web worth individuals commonly use IRC Section 2503(c) as a wealth transfer strategyy paying their grandchildren's and great-grandchildren's tuition and medical bills, they are removing assets from their estate, both gift and GST tax freeoreover, there are no limitations as to the amount that can be paid for such expensesowever, this strategy only works while the grandparents are aliveor those grandparents who wish to pay for their descendants' education and medical bills while transferring critical assets out of their estates, a health and education exclusion trust, or "HEET", sh ... [Read More > Background Information Lion King]
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