<prompt> Human: I have a very generous family friend offering to help me pay for medical school funds to be applied immediately starting this fall. What is the best way for him to do this that will 1. involve the least effort on his part i.e. Id rather not ask him to open up an account and 2. incur the fewest taxes for both him and myself? Im an independent, if that makes a difference. My parents mentioned perhaps going the 529 route? If this is the recommended plan, who should be opening the account--the donor, my parents, or me? And is it recommended that he not contribute more than the non-taxable gift amount 14k? What is the difference between him contributing to a 529 plan vs. just writing a check? Ive read through several 529 threads here but am still very lost on this. Thank you all in advance for any recommendationstips you can provide!  <response>: Money paid directly to the institution is not subject to federal gift taxes. 