McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

Exercise 10

A client in good health wants to support the college education of her teenage grandchild.The client holds various properties but proposes to make a gift of cash in the amount of the annual exclusion.Explain to the client why a direct gift of cash may not be advisable and what property might serve as a reasonable substitute.