How can a grandfather send money to grandson(US citizen) for US higher education?
Is there a limit per year ?
Does grandson have to pay gift tax to US government?
What documents are needed by grandfather?
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2Grandson is a US citizen. How about the grandfather? If he's not in the US - where is he?– littleadvCommented Mar 27, 2022 at 5:54
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1 Answer
Is there a limit per year ?
There isn't a limit on the the grandson, but there might be on the grandfather. The local laws will apply.
Does grandson have to pay gift tax to US government?
The grandson as a US citizen will not have to pay any gift taxes.
The gift will have to be accounted for when the son or his parents fill out the financial aid forms. It can impact how much aid they qualify for. If there is no need for financial aid, then the gift will not be included in a education linked forms.
What documents are needed by grandfather?
That depends on where the grandfather lives and what country they are a citizen of.
Note: if the grandfather lives in the US then they maybe able to increase the amount they give by sending the money directly to the school.
answered Mar 27, 2022 at 15:11
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If the grandfather is not in the US then there may be additional reporting requirements Commented Mar 29, 2022 at 0:04