Financial Advice Column Addresses Student Loans, Gold Coins and Social Security Benefits

The first question concerns tax advantages for parents paying off their adult child's student loan debt. The column explains relevant tax rules and exemptions.

The reader states that their daughter has $60,000 in student loan debt from her master's degree and currently works a minimum wage job. The parents seek information on deductions or benefits to offset the cost of repayment. The response indicates no deduction is available for such payments.

Payments to a child are subject to gift tax rules. The annual gift tax exemption for 2026 allows up to $19,000 per recipient without filing a gift tax return. A married couple can give $38,000 combined to their daughter in 2026 toward the loans.

Broader Context of Student Debt Student loan debt affects many college graduates.

A Gallup poll reported that the majority of borrowers delayed major life milestones, such as buying a home, starting a business, getting married or having children, due to their loans. Borrowers often reduce retirement savings to manage debt, which can limit long-term wealth accumulation.

Student loan debt has been associated with mental health issues, including increased depression, anxiety and reduced quality of life.

The column notes that the $60,000 debt could be paid off over two years using annual exemptions, assuming the limit remains similar or increases slightly in 2027. Paying the full amount in one year requires filing a gift tax return but is unlikely to incur taxes, as the lifetime exemption for 2026 is $15 million.

Selling Inherited Gold Coins The second inquiry involves selling gold coins inherited nine years ago after the reader's mother passed away.

The reader questions whether to sell given current high gold prices. The column advises on storage, insurance and tax considerations. Gold coins serve as a hedge against inflation and a portable form of wealth.

Owners must store them securely and consider insurance costs. To sell, the column recommends obtaining at least three quotes from reputable coin shops or jewelers and consulting a tax professional. The difference between the coins' value at inheritance and sale price constitutes a capital gain.

Gold coins are taxed as collectibles at a 28% federal capital gains tax rate.

Spousal Social Security Benefits The third question addresses Social Security benefits for spouses and ex-spouses.

The reader, married to their husband for nearly 20 years, asks if his first wife—who has not remarried—could claim benefits on his record without their knowledge. The reader also inquires about their own potential spousal benefit if it is lower than their husband's. No one can directly claim another person's Social Security benefits.

However, individuals can claim spousal or divorced spousal benefits based on a current or former spouse's earnings record under specific conditions. A divorced spouse can claim benefits if the marriage lasted at least 10 years, the benefit exceeds their own retirement amount and the ex-spouse is at least 62 years old.

The divorced spouse may receive up to 50% of the worker's full retirement age benefit.

The worker does not need to be receiving benefits, and typically is not notified of the application. Claiming a divorced spousal benefit does not reduce the worker's or current spouse's benefits. The current spouse can claim a spousal benefit if it exceeds their own, up to 50% of the worker's full retirement age amount, regardless of the ex-spouse's claims.