My notes :   I think the American law makers have decided they should move towards a culture that is more Iranian-like, the parents support their children for education, and helping them with a head start.

 

Gift Guide

Giving, The Tax-Free Way

Ashlea Ebeling, 01.19.09, 06:00 PM EST

There are smart ways to share your wealth now.

Even if you're not likely to have a taxable estate in the age of Obama, you may want to start passing some wealth to your children and grandchildren now. Fortunately, there are smart--and even simple--ways to do this.

[...]

Bryn Mawr, Pa., estate planning lawyer Stephan Leimberg says, "If you're not going to lose any sleep, why wait? They'll appreciate it, and you get the pleasure of seeing them enjoy it."

A common goal among affluent older folks is to help pay for their grandkids' schooling. You can pay anyone's college or private school tuition or medical bills (including, say, orthodontia) and so long as you send the check directly to the school or health care provider, that spending won't count against the $13,000 exclusion or your estate tax exemption.

Cite: http://www.forbes.com/2009/01/19/coverdells-giving-gifttax-pf-in_ae_0119taxes_inl.html