<p>The IRS gift limit is $13,000/year, so that’s the maximum that one person can give to another without the recipient incurring gift taxes (some exceptions apply).</p>
<p>No need to gift the money to anyone. If you’re going to spend it on your education, then open a student-owned 529 account in your state’s plan. This instantly changes the assessment of your asset from 20% to 5.6% for FAFSA. If your state’s plan isn’t attractive, check out other states’ plans. There are many to choose from; find the one with the lowest fees by doing some research online. The 529 investment is typically age-based, which means that most of the money will be equivalent to cash and so you’ll get similar if not better returns than in your savings account.</p>