If I wanted to help pay a significant sum towards an extended family member's (in-laws) medical bills, would that be subject to any kind of gift tax or similar? Just for an example say I wanted to pay for $50,000 towards their medical bills. My thought process was that:
a. If I wrote my family member a check for $50,000 they would then owe tax on that (I think?), so they could only use $40,000 (or whatever the value works out to) towards their actual bills.
b. If I directly paid the hospital and the money never went "through" my family member then the money would not be subject to this tax. Therefore all $50,000 is applied towards their medical expenses.
Is option b the correct approach in this situation?