Savings bonds have a special rule when the gift-giver does not know the SSN of the recipient. They permit the use of the giver's SSN, but that does not mean the bonds belong to the giver. It's just a special rule; don't try to make too much of it. When you cash savings bonds, the bank will ask for the SSN of the owner, so that they can issue a Form 1099 the next January. When they ask, you are expected to give them the correct SSN of the real owner. Actually, you can give them any SSN at all, but that doesn't make your representation the truth!

Similarly, the gift and estate tax laws have a special rule that applies to paying another person's (ANY other person's) educational expenses. Without this special rule, the payment of educational expenses exceeding $11,000 in 2002 would, in fact, be a potentially taxable gift (except for a spouse -- another special rule). Again, you are protected by a special rule applicable only to educational expenses; don't try to apply it generally.

The law governing gifts -- when a gift is made, how to value the gift (particularly difficult when applied to future or contingent interests) and various tax considerations -- is crystal clear to anybody who has worked in this area. This area of the law is not new and not murky. If you continue to be confused, see a professional. But don't speculate wildly that the law is what you would LIKE it to be.

Bruce