Instead of giving your grandchildren the latest tech gadget or cash they may blow through by New Year’s, consider financial gifts of lasting – even increasing- value. In many cases, these gifts can also provide tax advantages.

Saving bond.

For youngsters starting to learn about saving and investing.

 Perks

• Teaches the value of patience
• Can be held by minors in their own names
• Possible tax benefits if used for education expenses

529 plan contribution

For school-age kids (and parents worried about upcoming education bills)

Perks

• Distribution for qualified education expenses are generally tax free
• Some states allow deductions for contributions to their plans
• Front-load five years’ worth of annual gift tax exclusions, up to $70,000 per grandparents to each grandchild in 2017

Tuition Payment

For your favorite college student

Perks

• Not treated as taxable gift if made directly to the education institution
• Ensures that gift is used as you intended

Other rules and restrictions apply. Contact us for more information.

Holiday gift ideas for grandparents