- 1). Speak with a financial adviser and/or estate attorney. Explain your situation and ask their advice on investment methods and opportunities. Meeting with professionals can offer invaluable guidance when selecting and setting up accounts.
- 2). Open a 529 savings plan. The 529 savings plan is geared to be a tax-free college savings. Contact your state college investment plan coordinator and discuss account options and/or meet with private investment firms that partner with state plans for administering savings plans. College Savings Plans of Maryland, for example, partners with T. Rowe Price Associates, Inc. Set up an account in your name (the beneficiary) and the names of your grandchildren. Direct deposits, money market and stock opportunities are mechanisms used to grow the plan over the course of childhood -- until the grandchildren decide on a school. If they do not go to college, the money is transferred back to the beneficiary.
- 3). Set up a joint trust fund. Discuss trust funds with an estate lawyer. Pick a fund with low fees and a balance of stocks and money market investments. Determine a timeline when the account will mature and the grandchildren can have access to the money. Age 30 is an ideal time, giving the grandchildren an opportunity to mature and decide what to do with the money wisely.
- 4). Create a joint savings and/or checking account. Visit your local bank and present your current form of personal identification. Fill out applications and forms associated with the account. Put both names of the grandchildren -- along with your name, the primary account holder -- on the account. Understand that joint savings and checking accounts give equal access to all children. Anyone named on the account can deposit or withdrawal funds at any time.
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