Gifts for Grandchildren

Here's a way you can give a great gift to your grandchildren! You can set aside as little as $25 a month (up to $10,000 per year) into a Uniform Trust to Minor's Account. The Uniform Trust to Minor's Account (UTMA) is a special account that can pass money tax-free to a minor. However, since minor's cannot "legally" make their own decisions, the money is held in trust. Another option is to gift money to a "College IRA" account. This account allows you to accumulate money tax-deferred for college education. Each student can put up to $500 per year into this account. Using these two gifting methods can dramatically help your grandchildren go to the college of their choice.