Anonymous
04/30/2024 14:33
Subject: Tax Advantaged things grandparents can do for grandchildren
OP here. My understanding is that grandparents paying for daycare is not tax advantaged in the same way that paying directly for pre K and up is unless it’s part of the $32,000 they can gift her generally. Am I wrong on that? She’d be starting at 1 year old due to maternity and paternity leave. Thanks for the great ideas, I didn’t even think of summer camp!
Anonymous
04/30/2024 12:26
Subject: Tax Advantaged things grandparents can do for grandchildren
-Super fund 529 that the grandparent controls
-Directly pay tuition for daycare, private school, summer camps. Most elite private schools are paid for directly by trusts or grandparents
-Max annual gift to your kid, deposited directly into some sort of brokerage account or HYSA
-Directly pay for your vacation and holiday travels
This takes up a massive chunk of child-related costs.
-Directly pay tuition for daycare, private school, summer camps. Most elite private schools are paid for directly by trusts or grandparents
-Max annual gift to your kid, deposited directly into some sort of brokerage account or HYSA
-Directly pay for your vacation and holiday travels
This takes up a massive chunk of child-related costs.
Anonymous
04/30/2024 12:06
Subject: Tax Advantaged things grandparents can do for grandchildren
Pay for tuition starting in Pre-K. There are many schools with all day programs.
Summer camps can be a huge expense. Gifting camp registration costs would be a very nice gift. So many different camps around the DMV (if that is where you are located) that range in cost. I am paying $10k for my 9 year old for summer camps. It’s worth it to me and my child loves different camps. Of course there are less expensive options but as the kids get older they have their particular interests.
Sports, music lessons and hobbies are another expense that you may want to think about grandparents funding. Invite them to all the games, recitals, etc…
Lucky you! Kids are expensive, or at least mine is, but to see their joy while having wonderful experiences is so worth it. Good luck with your newborn. Sleep deprivation is hard, but time will fly by quickly. I remember the newborn phase like it was yesterday, but nine years has flown by.
Summer camps can be a huge expense. Gifting camp registration costs would be a very nice gift. So many different camps around the DMV (if that is where you are located) that range in cost. I am paying $10k for my 9 year old for summer camps. It’s worth it to me and my child loves different camps. Of course there are less expensive options but as the kids get older they have their particular interests.
Sports, music lessons and hobbies are another expense that you may want to think about grandparents funding. Invite them to all the games, recitals, etc…
Lucky you! Kids are expensive, or at least mine is, but to see their joy while having wonderful experiences is so worth it. Good luck with your newborn. Sleep deprivation is hard, but time will fly by quickly. I remember the newborn phase like it was yesterday, but nine years has flown by.
Anonymous
04/30/2024 11:46
Subject: Re:Tax Advantaged things grandparents can do for grandchildren
Anonymous wrote:Pay school tuition (at any level)
This -- although daycare does not equal school tuition since daycares aren't educational establishments. Besides tuition & funding a 529, travel is another area where grandparents can pay and not have the expenses count as a gift as long as the grandparents are on the trip. One of the best things my in-laws did for us that created the most memories was to buy a spectacular vacation home and then fly us all there for vacations. Even though I sometimes had a rocky relationship with my in-laws, my kids really remember those weeks spent with their grandparents.
Anonymous
04/30/2024 11:13
Subject: Tax Advantaged things grandparents can do for grandchildren
Put a lump sum away for college and invest it smartly. College is now approaching $100k a year at top schools. Look into private education for elementary.
Anonymous
04/30/2024 11:10
Subject: Tax Advantaged things grandparents can do for grandchildren
Pay daycare, pay all tuition, gift at the highest amount each year. That is a huge, huge leg up in life with all of these things.
Anonymous
04/30/2024 11:06
Subject: Tax Advantaged things grandparents can do for grandchildren
Yes, your parents can pay for daycare. Payment must be made directly to the daycare center though, not to you. That, private school tuition, annual gifting are the main things they can do on a regular basis.
Anonymous
04/30/2024 11:03
Subject: Re:Tax Advantaged things grandparents can do for grandchildren
Anonymous wrote:they can open a 529 for college savings (this is separate from your 529)
Totally this. You can use it to pay for school at any level now, I am pretty sure.
Anonymous
04/30/2024 10:57
Subject: Re:Tax Advantaged things grandparents can do for grandchildren
Anonymous wrote:they can open a 529 for college savings (this is separate from your 529)
+1. This! They can fund it to the gift tax max each year or superfund it in year 1 with 5X the gift tax amount (and not fund it or give gifts at all for the next 4).
Anonymous
04/30/2024 10:56
Subject: Re:Tax Advantaged things grandparents can do for grandchildren
Pay school tuition (at any level)
Anonymous
04/30/2024 10:48
Subject: Tax Advantaged things grandparents can do for grandchildren
Anonymous wrote:Anonymous wrote:Anonymous wrote:I'm lucky in that my parents are well off. I'm not sure how much money they have but I know they have planned for paying the estate tax so it's above that amount. I just had a child, my parents' first and possibly only grandchild, and my father would like to discuss what he can do for his grandchild financially. I'm sure he already has a plan, but before we talk I'd like to have some idea of options. It's just hard for me to research right now because I'm very sleep deprived with a newborn! He gives my siblings and me the annual gift tax exclusion amount in a trust so I assume my child would get that as well. I also know grandparents can my for their grandchildren's school directly and not have to worry about estate tax. What about daycare? Anything else? I've also received quite a few checks from family for my child and I need to figure out what sort of account to set up for her to deposit them. Please help out a sleep deprived new mother! TIA.
start funding their ROTH ira early
Can't do that without earned income.
Np - correct but the once the child has earned income either the Op or her parents can make the deposit to a Roth. We have done this for our kids and hope it will help them long term.
Anonymous
04/30/2024 10:42
Subject: Tax Advantaged things grandparents can do for grandchildren
Anonymous wrote:Anonymous wrote:I'm lucky in that my parents are well off. I'm not sure how much money they have but I know they have planned for paying the estate tax so it's above that amount. I just had a child, my parents' first and possibly only grandchild, and my father would like to discuss what he can do for his grandchild financially. I'm sure he already has a plan, but before we talk I'd like to have some idea of options. It's just hard for me to research right now because I'm very sleep deprived with a newborn! He gives my siblings and me the annual gift tax exclusion amount in a trust so I assume my child would get that as well. I also know grandparents can my for their grandchildren's school directly and not have to worry about estate tax. What about daycare? Anything else? I've also received quite a few checks from family for my child and I need to figure out what sort of account to set up for her to deposit them. Please help out a sleep deprived new mother! TIA.
start funding their ROTH ira early
Can't do that without earned income.
Anonymous
04/30/2024 10:31
Subject: Re:Tax Advantaged things grandparents can do for grandchildren
they can open a 529 for college savings (this is separate from your 529)
Anonymous
04/30/2024 10:28
Subject: Tax Advantaged things grandparents can do for grandchildren
Anonymous wrote:I'm lucky in that my parents are well off. I'm not sure how much money they have but I know they have planned for paying the estate tax so it's above that amount. I just had a child, my parents' first and possibly only grandchild, and my father would like to discuss what he can do for his grandchild financially. I'm sure he already has a plan, but before we talk I'd like to have some idea of options. It's just hard for me to research right now because I'm very sleep deprived with a newborn! He gives my siblings and me the annual gift tax exclusion amount in a trust so I assume my child would get that as well. I also know grandparents can my for their grandchildren's school directly and not have to worry about estate tax. What about daycare? Anything else? I've also received quite a few checks from family for my child and I need to figure out what sort of account to set up for her to deposit them. Please help out a sleep deprived new mother! TIA.
start funding their ROTH ira early
Anonymous
04/30/2024 10:19
Subject: Tax Advantaged things grandparents can do for grandchildren
I'm lucky in that my parents are well off. I'm not sure how much money they have but I know they have planned for paying the estate tax so it's above that amount. I just had a child, my parents' first and possibly only grandchild, and my father would like to discuss what he can do for his grandchild financially. I'm sure he already has a plan, but before we talk I'd like to have some idea of options. It's just hard for me to research right now because I'm very sleep deprived with a newborn! He gives my siblings and me the annual gift tax exclusion amount in a trust so I assume my child would get that as well. I also know grandparents can my for their grandchildren's school directly and not have to worry about estate tax. What about daycare? Anything else? I've also received quite a few checks from family for my child and I need to figure out what sort of account to set up for her to deposit them. Please help out a sleep deprived new mother! TIA.