Fishkind quoted in CNBC on paying tuition as a nontaxable gift
Russ Fishkind, a partner in Saul Ewing’s Private Client Practice, discusses ways in which grandparents can help with their grandchildren’s expenses in an effort to avoid gift taxes. The article notes that paying a child’s preschool tuition is one option for generous grandparents, however the institution must fit the requirements of an “educational organization” in order to qualify as a nontaxable gift. "Grandparents can cover these costs as long as this is an educational institution with a regularly enrolled student body," said Russ in the article. “Day-care drop-off doesn't work.” The article also offers some alternative funding strategies for situations in which a preschool is not considered an educational organization.
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