Payments made directly to a medical provider for a grandchild's medical care, deductible for Federal income tax purposes, are:
a) Excluded from the Federal gift tax in unlimited amounts.
b) Excluded from the Federal gift tax but only if a Federal gift tax return (form 709) is filed.
c) Fully subject to the Federal gift and estate tax without exclusion.
d) Excluded from the Federal gift tax in amounts up to the annual exclusion amount.