One of the President’s budget proposals explained in the Treasury Green Book would “modify generation-skipping transfer (GST) tax treatment of health and education exclusion trusts (HEETs).” This proposed change would only exclude from GST tax, payments for medical care or school tuition when directly received by the provider or school from the donor, and not from a trust, such as a HEET.
See Stephanie Moll, Treasury Green Book Proposal: Health and Education Exclusion Trusts, Bryan Cave, March 5, 2015.
Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.
