For many families, building wealth is only part of the equation. The other part is deciding how and when to share it.
Whether you want to help a grandchild pay for college, give your children a head start on retirement, or begin transferring wealth to the next generation, how you give can matter just as much as how much you give.
Here are six ways to give to family to make your gifts go further.
1) Fund Education With a 529 Plan
A 529 plan can be a tax-efficient way to help a child or grandchild with education expenses. Investments can grow tax-deferred, and withdrawals are generally federal income-tax-free when used for qualified education expenses.
529s can also be useful for larger gifts. A special election allows an individual to contribute up to five years’ worth of annual exclusions at once. With the 2026 annual gift-tax exclusion at $19,000, that’s potentially $95,000 per beneficiary for an individual or $190,000 for a married couple, assuming applicable requirements are met.
And 529s have become more flexible: under certain conditions, unused funds may eventually be rolled into the beneficiary’s Roth IRA, subject to applicable limits and requirements.
2) Help a Working Child Start a Roth IRA
Once a child or grandchild has earned income, a Roth IRA can be a powerful way to give them a head start on retirement.
A young person can generally contribute up to the lesser of their earned income or the annual IRA contribution limit. But they don’t necessarily have to fund the account with their own paycheck.
For example, if your granddaughter earns $5,000 from a summer job, you could give her $5,000 to contribute to a Roth IRA while she keeps the rest. Starting early gives those dollars decades of potential tax-free growth.
3) Make Annual Gifts—and Understand the $19,000 Rule
This is one of the most misunderstood gifting rules.
In 2026, you can generally give $19,000 per recipient under the federal annual gift-tax exclusion. But that does not mean you can’t give someone more than $19,000 without owing gift tax.
If you give more, the excess may require a federal gift-tax return and generally counts against your lifetime gift and estate tax exemption—which is $15 million per individual in 2026.
In other words, a gift that needs to be reported is not necessarily a gift that generates tax.
That distinction can give families much more flexibility than they realize.
4) Pay Tuition or Medical Expenses Directly
Certain tuition and medical expenses have another valuable benefit: qualifying payments made directly to the school or medical provider generally aren’t treated as taxable gifts.
That means a grandparent could pay qualifying college tuition directly to a university and still make a separate annual-exclusion gift to the same grandchild.
The details matter. For example, the education exclusion generally applies to tuition—not room and board, books, or other college expenses.
5) Use Trusts When Control Matters
Sometimes you want to give without immediately handing over complete control of the assets.
A trust can provide more structure around when and how beneficiaries receive money. Depending on the family’s goals, distributions might be used for education, health care, a first home, or other purposes.
Trusts can be especially valuable for larger wealth transfers, but they also introduce legal and administrative complexity. They should be designed in coordination with your estate-planning attorney and broader financial plan.
6) Consider Trump Accounts for Younger Children
Trump Accounts are a new tax-advantaged savings vehicle for eligible children, and recent IRS guidance clarified an important question about gifting.
In June 2026, the Treasury Department and the IRS established a safe harbor under which certain individual contributions to Trump Accounts can be treated as completed gifts eligible for the federal annual gift tax exclusion.
One important distinction: this does not mean the donor receives an income-tax deduction. Rather, the new guidance provides more favorable and predictable gift-tax treatment for qualifying contributions.
Because these accounts are new, families should consider them alongside established options such as 529 plans and Roth IRAs when deciding how best to save for younger generations.
The Best Strategy Depends on the Goal
There isn’t one “best” way to give.
A 529 may make sense for education. A Roth IRA can help a working child start building retirement savings. Direct tuition or medical payments can provide support without using the annual exclusion. Annual gifts can gradually transfer wealth, while trusts can provide greater control over larger gifts.
And often, the answer is a combination of strategies.
Thinking about gifting as part of your broader financial and estate plan can help ensure that your generosity supports the people you care about while also aligning with your long-term goals.
Before making a significant gift, consider coordinating with your financial advisor, CPA, and estate-planning attorney to determine which strategies make the most sense for your family. Alternatively, connect with us today to discuss your specific circumstances.
This material is provided for educational purposes only and should not be considered individualized tax, legal, or investment advice. Tax laws and regulations are subject to change. Please consult with your financial advisor, legal professional, and/or tax professional to determine the suitability of these strategies. All views, expressions, and opinions in this communication are subject to change. This communication is not an offer or solicitation to buy, hold, or sell any financial instrument or investment advisory services.