Ask Terry Questions grandchild’ s college

grandchild’ s college

By Terry Savage on April 25, 2023 | College Savings / Student Loans

My granddaughter is in her second year of college. I would like to help a bit with her tuition.
1. Should I gift her $2000.00? Does she pay the taxes on my gift?
2. Pay the school directly to her account and then cover the taxes myself?
3. She is 18 years old and I’d rather give her this gift directly and not to her parents.
4. If you have a better suggestion, please advise.
Thank you

Terry Says

There are no taxes involved. Ask your granddaughter for the address of the bursar at her school, and her account number there. And their phone number. Ask them how to make out the check. Be sure to put her name and account number in the memo space. Send the check DIRECTLY TO THE SCHOOL! That’s how to do it!!

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