Gifting money to granddaughter
Can I invest money in T-bills as an inheritance for my granddaughter?
Is a CD a better investment for her?
Which would give Her a tax advantage?
Terry Says
The best thing you can do if your granddaughter is not yet a teenager is to open a 529 college savings account.
Read this: https://www.terrysavage.com/the-gift-of-college-529-plans/
The money in it grows tax free for college and will have little impact on financial aid.
You say that you want this to be an inheritance, instead of an outright gift. You can give up to $15,000 per year outright with no impact on your estate tax situation (both state and federal). So if she is older, you might just want to pay off her existing student loans! Or help with a down payment on a house.
Or you can put the gift in your will, and she will have to wait until you die to get the money. But then you won’t get the joy of seeing what an impact it makes on her life! And yes, in the meantime, you can invest it in T-bills in your name.
