How to Give Financial Gifts to Grandchildren Before Year-End

529 Plans: Funding Education, the Smart Way

• You can contribute toward a child’s education using a 529 plan. Some families choose to make a larger, one-time contribution that’s treated as spreading over five years for tax purposes (IRS Form 709).
• Ask us how 529s can fit into your broader giving plan.

Annual Gifting: Small Steps That Add Up

• Each year, you can give up to a set amount per person without gift tax. Gifts must be completed by December 31 to count for this year. Larger gifts may require IRS Form 709 and reduce your lifetime exemption.
• Let’s review your year-end gifting options together.

Trusts: Structure Your Gifts with Purpose

• Trusts can help set clear guidelines for how and when family receives support—such as for education or milestones. They involve legal documents and administration, so it’s best to review with your attorney and tax advisor.
• Explore which trust options align with your goals.

Charitable Giving: Give and Feel Good Doing It

• If you’re age 70½ or older, you may be able to send IRA funds directly to a qualified charity through a QCD*. This can help satisfy part of your RMD and keep the amount out of taxable income. QCDs must go directly to the charity before Dec 31.
• Ask about year-end charitable strategies.

** QCD = Qualified Charitable Distribution, a direct transfer from an IRA to an eligible public charity (not donor-advised funds or private foundations). QCDs are subject to IRS rules and eligibility requirements.

Support your family’s future with confidence. Ready to talk strategy? Book your Intro call with Matt Pappas.

Content is for informational purposes only. Neither the information nor any opinion expressed in this content constitutes an offer by Cottonwood Wealth Strategies to buy or sell any securities or financial instruments, or to provide any investment advice or service.

Cottonwood Wealth Strategies does not provide legal, tax, or accounting advice.