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June 6, 2025

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

Amelia Green
Amelia Green
AVP, Private Wealth Advisor, Trust
Dear FineMark: How to secure grandchildren’s future financially smartly?

Video Title: Dear FineMark: How to secure grandchildren’s future financially smartly?
Date recorded: January 1, 2026

Today’s Dear Fine Mark question comes from a grandfather who is thinking about his legacy, not just in dollars, but in opportunity, he writes. I’m 79, I’m 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?

What a wonderful intention and what a great vote of confidence for your grandkids.

With your gift, you’re telegraphing that not only do you believe in their future, but you believe in their academic success. 529 plans do offer a number of advantages, especially for younger grandkids. That’s because those accounts grow tax-free. They’re also tax-free upon withdrawal as long as you use that money for a qualified expense.

Those include tuition, books, and even K–12 tuition. The IRS also allows you to superfund your accounts, which with your resources would be a huge advantage. You can contribute up to five years’ worth of the annual gift tax exclusion amount at one time.

For 2025, that exclusion is $19,000. Another advantage to 529s is that you retain control over those accounts and you’re the legal owner even after the beneficiary turns 18. So you would have control over the investments and you could even change the beneficiary whenever you want to.

Contrast that with a UTMA or a UGMA custodial account. Those are essentially just investment accounts for minors, and as such there’s a lot more flexibility in their purpose.

You can use them for whatever you want, but the beneficiary becomes the legal owner as soon as they reach the age of majority, so you lose control over those assets. Now I would consider a combination of both because you don’t know what your grandkids are going to want to do in the future.

That way you can balance flexibility in use and also the tax advantages. Either way, at FineMark, we think the greatest wealth you can pass on is a sense of stability and confidence to your kids. And with these gifts, you’re doing that for two generations — your kids and your grandkids.

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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

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

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 2026, 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.
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