I've heard there are some expenses you can pay directly for a family member without being subject to paying a gift tax. I am especially interested in tuition for my children and medical expenses for my parents.
A word of caution - school and medical bills are OK - but some other expenses are not. For example, if you pay for your grandson's music lessons or help pay to have an addition built on your daughter's home, the amount you contribute will be subject the the gift tax. By the way, the gift tax is cumulative throughout the year for each individual.
Yes, in 2009 you can gift as much as you want directly to the college or medical provider without paying gift taxes. Both you and your wife can gift up to $13000 each per person for other areas without paying gift tax.
hope this helps.
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