SPECIAL REPORT: Build Generational Wealth — Set Your Children And Grandchildren Up For Financial Success

How and Why to Give to Your Grandkids | 5 of the Best Financial Gifts for Your Grandkids | 7 Stocks to Give Your Grandchildren Created for {EMAIL} | [Web Version]( October 27, 2023 CONNECT WITH KIPLINGER  [LinkedIn]( [Facebook]( [Twitter]( [Youtube]( [Instagram]( Kiplinger Today [SIGN UP]( ⋅ [SHARE]( [] Top Story [] [How — and Why — to Give to Your Grandkids]( [How and Why to Give to Your Grandkids]( (Getty Images) Whether they are already young adults or still in diapers, your grandchildren could use the money to pay ever-increasing college costs, to buy a house or to start a business. Your children — their parents — on the other hand, are likely to be in their own peak earning years, paying tuition and preparing for their own retirement. [If you're thinking of sharing some of your wealth with your grandkids, here's how to do it](. [] GIFTS [] [5 of the Best Financial Gifts for Your Grandkids]( [5 of the Best Financial Gifts for Your Grandkids]( (Getty Images) If you've been giving your grandchildren cash for the holidays, now is a good time to rethink that. There are other financial gifts that will help teach them the value of money and set them up for life. Taking into account usefulness, potential returns and taxes, [here are five better financial gifts to give than cash](. [Plan Your Retirement Income with Vanguard]( At Vanguard, we're invested in you. Which is precisely why we've created Vanguard Personal Advisor Services®, providing remote access to financial advisors, real-time goal tracking, and more confidence you'll meet your goals. [There's never been a more perfect time to get started]( Paid non-client promotion [GET STARTED]( ADVERTISEMENT [] STOCKS [] [7 Stocks to Give Your Grandchildren]( [7 Stocks to Give Your Grandchildren]( (Getty Images) We want children to develop critical life skills around money as early as possible. The more they learn about saving and investing — to say nothing of compound interest, dividends, the economic cycle — the better. You know how important this stuff is going to be for them in ways they can't yet imagine. [Learn why you should consider giving your grandchild a gift that bears dividends and teaches about money](. [] SMART ASSET TRANSFERS [] [Three Ways You Can Transfer Wealth to Help Your Kids]( [Three Ways You Can Transfer Wealth to Help Your Kids]( (Getty Images) There are strategies you can use to assist the next generation with a financial head start that are beyond the typical direct gifting of cash. Alvina Lo, chief wealth strategist at Wilmington Trust, believes that as the next generation begins to accumulate wealth of their own, financial and wealth planning solutions and strategies also need to evolve. [R]([ead about three ways you can transfer wealth without burdening your kids with extra taxes](. [] ESTATE PLANNING [] [IRS Quietly Changed the Rules on Your Children’s Inheritance]( An exception to the obligation of capital gains taxes has been when assets pass at the death of the owner to their beneficiaries. Property, such as your home, held in an irrevocable trust 'that is not included in the taxable estate at death' will no longer receive a step-up in basis. Here’s why the wording of that is key. Lindsay N. Graves, Esq says you can still avoid capital gains taxes and estate taxes and pass on property to your children tax-free — it just takes very careful planning. [Read More]( [Custom Strategies to Help Create More Income in Retirement]( Vanguard Personal Advisor® is built to provide you an ongoing collaboration with our professional advisors -- no matter where you are. Our advisors are salaried and don't earn commissions, so they'll always put your best interests first. [Take the first step with Vanguard today]( Paid non-client promotion [GET STARTED]( ADVERTISEMENT [] TRUSTS [] [One Way to Secure Your Child’s Inheritance in an Uncertain Tax Future]( Naturally, most parents want their children to inherit as much wealth as possible, which drives a quest to shield those heirs from unnecessary taxation when they inherit. Samuel V. Gaeta, CFP, says the question then becomes, how can you transfer the most wealth possible to your heirs? Often, the answer is an IDGT. Read on to find out what an IDGT is and how you can use it to maximize your heirs inheritance [Read More]( ABOUT KIPLINGER When we write about money, we get it right. 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