Gifting to Your Grandchildren

Key Takeaways

  • Saving for college is one of the first things that come to mind for joyful new grandparents these days.
  • UTMAs, 529 plans and irrevocable gift trusts can be excellent, tax-advantaged ways to fund a child’s or grandchild’s education.
  • Remember, some trusts and gifts automatically transfer to the child at age 21. You may not be able to control what he or she does with all the money that’s accumulated. Consult your advisor.

College Funding for Grandchildren

We have lots of great experiences with our clients here at Coyle Financial. But probably the greatest one is when we get a call about them becoming new grandparents. They’re very excited about their new grandchild – best thing that has happened in their life. A substantial life-changer.

But the interesting thing that happens, almost within a breath of announcing this new grandchild, is they say: “You know, I’m really concerned about their college.  How can I go about funding for their college?  What can I do?”