#30 - Giving money to kids
Tue Feb 03 2026
There's a lot that goes into giving money to kids (or receiving money as a child.) There are tax ramifications, behavioral impacts, and of course "spiritual" elements to consider. We'll talk about how to plan for giving or receiving a gift, the supposed tax "limits" to giving, and what not to do.
We'll also talk about:
• balancing generosity with grit and intrinsic motivation
• the coming wealth transfer and planning implications
• when to plan for expected gifts or ignore them
• annual exclusion myths and lifetime exemption rules
• gifting cash vs appreciated stock and basis tradeoffs
• adult vs minor gifting, control and timing differences
• 529 benefits, aid considerations, and K–12 uses
• UTMA/UGMA pros and cons, parent brokerage earmarks
• when trusts make sense and when they do not
• “Trump accounts” benefits, limits, and open questions
• the value of experiences as gifts
• transparency, changing priorities, and legacy beyond heirs
More
There's a lot that goes into giving money to kids (or receiving money as a child.) There are tax ramifications, behavioral impacts, and of course "spiritual" elements to consider. We'll talk about how to plan for giving or receiving a gift, the supposed tax "limits" to giving, and what not to do. We'll also talk about: • balancing generosity with grit and intrinsic motivation • the coming wealth transfer and planning implications • when to plan for expected gifts or ignore them • annual exclusion myths and lifetime exemption rules • gifting cash vs appreciated stock and basis tradeoffs • adult vs minor gifting, control and timing differences • 529 benefits, aid considerations, and K–12 uses • UTMA/UGMA pros and cons, parent brokerage earmarks • when trusts make sense and when they do not • “Trump accounts” benefits, limits, and open questions • the value of experiences as gifts • transparency, changing priorities, and legacy beyond heirs