Dear FineMark: How to secure grandchildren’s future financially smartly?

Today’s Dear FineMark comes from a grandfather who’s thinking about his legacy, not just in dollars, but in opportunity. Here is the question…

“I’m 79, recently retired, and my wife and I have been fortunate. We’ve built up about $15 million in assets over the years, and we live comfortably. We have four grandkids and we want to help with their education. We’re thinking about 529 plans. What’s the smartest way to move forward?“

Signed, Legacy-Minded Grandfather

Today’s “Dear FineMark…” question was answered by
Private Wealth Advisor, Amelia K. Green
FineMark Bank & Trust, a division of Commerce Bank, Fort Myers[/su_icon_text]

529 plans are a powerful way to turn that belief into action. The earlier you start, the more time the investments have to grow. Contributions grow tax-deferred, and as long as the funds are used for qualified education expenses, like tuition, books, and even some K–12 costs, withdrawals are tax-free. Plus, as the account owner, you retain control of the funds even after your grandchild turns 18, and you can change beneficiaries within the family if plans shift.

Given your financial position, you may want to consider “superfunding” each grandchild’s 529 plan. In 2025, each grandparent can contribute five years’ worth of annual gifts, $19,000 per year per beneficiary, up front without impacting your lifetime gift tax exemption. That means you and your wife could contribute a total of $190,000 across four grandchildren. Your financial and tax advisors can help you structure this properly and file the necessary paperwork.

You might also consider a custodial account (UGMA or UTMA) for added flexibility, as funds placed in these account types may be used for non-education expenses. But keep in mind: once your grandchild reaches the age of majority, those assets are theirs to control.

Ultimately, the right path may include both strategies, customized to each grandchild’s needs and your broader estate goals.

At FineMark, we believe the greatest legacy isn’t just wealth, it’s the confidence, stability, and sense of possibility that come with it. And it’s clear you’re already giving your grandchildren a remarkable head start.

Important material disclosures regarding the content of this program follow.  Generally, non-depository investments offered in connection with FineMark Bank & Trust, a division of Commerce Bank and its affiliates are not guaranteed, are not FDIC insured, and may lose value.

Opinions and other information provided are effective as of the date of the recording and presented for the purpose of general education, information, or illustration only. This material provided should not be construed as a recommendation to buy, hold or sell securities or as advice relating to the profitability of any investment product, strategy or plan. You, as the investor, are fully responsible for any investment transaction you choose to enter into, including determining whether such investment is appropriate in light of your investment objectives and personal circumstance, and you shall not have relied on the preceding information from FineMark as the basis for any investment decision.

This material is not intended to replace the advice of a qualified attorney, tax advisor or investment professional. In considering whether to trade or invest, you should inform yourself and be aware of the risks. Past performance is no guarantee of future results, and the information in the commentary provided is subject to change based on market or other conditions.  Diversification does not guarantee a profit or protect against all risk.

FineMark does not offer tax, legal or specific estate planning advice. And while we may provide information or express general opinions from time to time, such information or opinions are not offered as professional tax or legal advice.

FineMark does not provide advice relating to rolling over retirement accounts. FineMark is not a Municipal Advisor under Section 15B of the Securities Exchange Act, and does not offer advice or recommendations concerning bond proceeds or other municipal advice subject to this section.

Any data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness or reliability cannot be guaranteed.

This material may not be reproduced or referred to in any publication, in whole or in part, or in any form or manner, without the express written consent of FineMark. Any unauthorized use is prohibited.