Simple gifts to family.
Family Loans at very low interest rates.
Grandparents can give their grandchildren up to $14,000 a year (in 2014) without having to report the gifts. While you can make an outright gift, pay health care and school costs directly, or put the money in a custodial account, putting the money into a trust has some major advantages.
With the help of an attorney, you can draft a trust that reflects your express wishes about when the income and principal will be available to the grandchild, and even how the funds will be spent.
Transferring funds into such a trust offers the following benefits:
In order to qualify for these benefits, certain restrictions apply. These trusts are complex legal documents and should not be set up without the help of an experienced elder law attorney.