Grandchildren's Inheritance Investment advise

[Roman AB]

Looking for some advice here for my children. My 98 yoa WWII veteran grandfather passed and left me as the executor of his estate. He set me up as the beneficiary on all of his accounts, but my children and my brothers' children are to be the beneficiaries off all his moneys and property in Arkansas. The Will is specific that the money could be used for health and education. There is about 220.000.00 total in his checking and corporate bond accounts. All of our children will need the money for school at different times, so we are going to split the money 5 ways between all the grandchildren. Is that as easy as wiring his account funds to one in my name and then opening an account for each grandchild then transferring it equally?

I have 2 children so there will be around 88,000.00 dollars for my 2 children. Id like to invest it for them in the meantime so we can grow it. My son will graduate in 2029 and my daughter will in 2032. I first looked into a 529 plan, but you can only put a little under 20,000 a year in the account so it would take 3 years to get all the money in there. My bank offers 1 year CD's at 4.99%. I was going to schedule an appointment with Fidelity to see what they can offer. For the money wise people, out there is there a better option?

Here are 2 interview he did about the war and his life for the history folks out there.

https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=&cad=rja&uact=8&ved=2ahUKEwicyPLlpfaLAxVgMtAFHWpaHGUQwqsBegQIDhAH&url=https%3A%2F%2Fwww.youtube.com%2Fwatch%3Fv%3D63O0VafH4WI&usg=AOvVaw1Hp80ekuA9Vnl1LP3lu1v6&opi=89978449

https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=&ved=2ahUKEwicyPLlpfaLAxVgMtAFHWpaHGUQwqsBegQIDRAF&url=https%3A%2F%2Fwww.youtube.com%2Fwatch%3Fv%3DHLe4vcc2PgU&usg=AOvVaw2x87dvOOCoApLHTacsz4Xd&opi=89978449

[bbqfan5909]

Not sure what 529 you're using, but vanguard seems to allow 38k per year.

Yes, 529 plans are especially popular with grandparents who want to save for a grandchild's future and reap estate planning benefits at the same time. Beginning January 1, 2025, you can contribute up to $19,000 per year ($38,000 if married filing jointly) to a single beneficiary without triggering a federal gift tax.

[bowhntrmatt]

*Not an expert, may be wrong*

If you have control over his existing accounts, I would have the kids (or their parents) open up each kids' account and transfer directly to each one from where it sits now. It would stink if that deposit to your account got pinged by the IRS and you got audited. Or just move it all into the existing checking acct and write each kid a check.

My mom left each grandkid a small trust a few years back when she passed, and I'm the executor. I would have put the money in 529's for each kid, but my siblings didn't want their kids' money invested in 529 accounts (I guess they were betting against their kids going to college is the only thing I can think of). I just went to a broker and opened brokerage accounts for each of the 7 trusts and put it all in an S&P index fund. So far that has worked out well, but obviously the market has its risks. I'm still a few years away from any of the kids being eligible for disbursement.

[jomw10]

Find a 529 for each kid, on your name, but they are the beneficiary. Then invest in’s sp500 index fund and don’t look at it until ready to pay for college

[Killer]

So, if each kid just gets the $44,000.00 without it going into a 529 or IRA won't they have to pay income tax on it on the year received? That would be a big hit.

I would talk to CPA or financial adviser about how to avoid the tax implications if possible.

[TradAg02]

There are some errors in your research and some bad information in a few of the responses. You need to talk to a professional before you do anything.

[1riot1ranger]

There are some errors in your research and some bad information in a few of the responses. You need to talk to a professional before you do anything.

This! I was executor of an uncle's estate many years ago and just distributed to surviving siblings or a couple he designated (followed his instructions) then split equally among surviving kids if sibling had also passed. Didn't pay attention to taxes after probate. Also consulted with Attorney/CPA. There may have been a better way, but it worked out. No one got less than $20k and no one complained 

[Roman AB]

So, if each kid just gets the $44,000.00 without it going into a 529 or IRA won't they have to pay income tax on it on the year received? That would be a big hit.

I would talk to CPA or financial adviser about how to avoid the tax implications if possible.

I thought inheritance was nontaxable

[Huntingfool]

with all due respect - don't come onto a hunting forum to get investment and legal advice - there are many very qualified advisors who will answer your questions and give you good advice -

[Roman AB]

with all due respect - don't come onto a hunting forum to get investment and legal advice - there are many very qualified advisors who will answer your questions and give you good advice -

I know it seems crazy, but there are some very knowledgeable people on this site. Im sure there are some people in that career choice as well

[Quackerbox]

I thought inheritance was nontaxable

In my experience no. Gift tax is like 15k limit. At least that's what my cpa said

[boy wonder]

In my experience no. Gift tax is like 15k limit. At least that's what my cpa said

My understanding is, there’s a lifetime limit as well. And, a gift can be greater than the $15k limit, just have to submit a form.

[Bill]

My question is if the condition of the inheritance was the money was to be used for education or health expenses, how would putting it in accounts for the individual grandchildren prevent them from taking it and buying a car or boat?

I think there’s estate issues in addition to where to invest it. I suggest meeting with an attorney specializing in estates.

My free 2 cents. I recently changed my financial advisor to one in Texas I met here on TBH. A good man who if he can’t help you, I think will know who can. I prefer not to post who on the forum. PM me and I’ll give you his contact info.

[monsterspike]

If the advisor spent 10 years NOT recommending bitcoin, run run run far far far away.
Buy .15 BTC for each kid imo. then go the 5% return route on the remainder.
Not financial advice, but it is what I would do.

[Quackerbox]

My understanding is, there’s a lifetime limit as well. And, a gift can be greater than the $15k limit, just have to submit a form.

That's the trouble with taxes and forms its all BS and there's 100 answers.

When my mom died her Roth and some stocks got split between my dad and I. She apparently wanted to give the 2 grandsons 30k each. The ed Jones guy advised my dad to write a 15k check to each in December and another in January. No forms, no tax no nothing