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Should I Consider “Giving While Living” to My Adult Kids?
6/23/2026
"While it’s important to first stress test your own financial plan against unexpected events such as large medical expenses or long-term care costs, for those with their retirement years financially secure, it’s worth considering 'giving while living' as a way of having a more meaningful impact on younger generations."
Natalie Foy, CFA, CFP®
SENIOR ADVISOR, CFO
Many of our clients have spent decades diligently saving for retirement. Once they’ve secured their own long-term financial independence, it’s fun to see the conversation shift from “what do I need?” to “what will I do with the excess?”
We’re approaching The Great Wealth Transfer, the largest intergenerational wealth transfer in financial history. As Baby Boomers and the Silent Generation approach their twilight years, it’s anticipated that significant wealth will be left to charitable organizations and their heirs. With many individuals in the position of having more than the need to fund the rest of their lives, we’re having an increasing number of conversations about legacy.
While it’s important to first stress test your own financial plan against unexpected events such as large medical expenses or long-term care costs, for those with their retirement years financially secure, it’s worth considering “giving while living” as a way of having a more meaningful impact on younger generations.
First, a personal anecdote: My grandparents were part of the Greatest Generation. True products of the Great Depression, they lived well within their means. (My grandpa’s favorite breakfast spot was McDonald's, where he could get a free coffee with the senior discount.) Despite achieving significant career success, every dollar was carefully accounted for and wisely stewarded, and one of his top priorities was giving to charitable organizations he believed in.
In addition to being charitable, at the age of 70 my grandpa began paying for his 5 kids and 11 grandkids to go on a big annual trip. My grandpa would share that these trips were a way of spending our inheritance with us. What an incredible opportunity it was to spend quality time with my grandparents and cousins while traveling the world!
While travel is one way to spend future inheritance dollars with younger generations, there are many ways to provide for adult children when it’s most meaningful for them. Giving while living can be an excellent way to help adult children:
- Buy a home: The cost of a median U.S. home has shifted from roughly 2.5–3x a family’s annual earnings in the 1970s to more than 5x today. Despite the reality of two-income households, homeownership is significantly less accessible. Helping adult children with closing costs or a down payment can offer them a massive head start during their most formative financial years. For those who want to help in a more substantial way, providing an intra-family loan or acting as a co-borrower could be strategies to explore.
- Fund kids’ educations: College tuition has far outpaced inflation, effectively doubling in real terms over the last three decades. With household budgets already constrained by housing costs, funding education often requires greater sacrifice today than it did for previous generations. Grandparents can help fund education expenses by making direct payments to the school, which do not count towards the annual gift exclusion. Another great option is to contribute to a 529 plan. For grandparents that can contribute significant resources for college funding, a 529 plan allows for superfunding: you can provide 5 years of annual gift exclusion limits in one year ($95,000 for an individual or $190,000 for a married couple), and avoid triggering federal gift taxes or counting towards your lifetime gift tax exemption. You must file IRS Form 709 with your federal tax return in the year you make the contribution, but the invested funds then have longer to compound.
- Pay for medical expenses: Like housing and college tuition, healthcare costs have surged in recent decades. In the 1970s, health spending accounted for roughly 6% GDP, and the average American family spent $341 out-of-pocket on healthcare annually. Today, health spending accounts for nearly 18% of GDP, with the average per-person health cost over $13,000. (This is wild, and deserves a longer discussion not suited to this post.) Many times, health bills are an unexpected expense item that can strain an already-stretched budget. Any payments made directly to the medical practice or hospital do not count towards annual gift limits.
If you desire to give while you live to your offspring, be aware of Annual Gifting Limits: The 2026 federal annual gift tax limit is $19,000 per recipient. A married couple can give $38,000 to the same recipient. A common misconception is that exceeding the annual gifting limit creates an immediate tax bill. That is inaccurate. If you exceed the limit, you simply file a gift tax return (IRS Form 709). The excess is deducted from your lifetime federal exemption, currently $15 million for individuals or $30 million for married couples, meaning most people will never owe any taxes on their gifts.
While giving to your offspring now can certainly be more meaningful to them, I’d argue it is also more meaningful for you. Rather than your kids receiving a slightly larger portfolio when you pass, you’ll get to witness the impact of them opening the door to their new home, seeing their eyes light up as they explore a new destination, or watching your grandkids walk across the graduation stage at the school you helped fund.
For those who have “enough,” it’s worth considering what kind of impact you want to have, and whether the impact is greater now or later. I’d encourage you to speak with a trusted fee-only, fiduciary advisor who can help you evaluate your personal circumstances and be aware of any considerations specific to your situation.
The views and opinions expressed in this blog post are those of the author, an Investment Adviser Representative (IAR) of Greenway Wealth Advisors, LLC, an SEC-registered investment adviser. The information provided is for educational and informational purposes only and does not constitute investment advice. This content is not an offer to buy or sell any security. All investing involves risk, including the potential for loss of principal. Past performance is not indicative of future results. It is important to consult with a qualified financial professional before making any investment decisions. Greenway Wealth Advisors, LLC is an SEC-registered investment adviser. Registration does not imply a certain level of skill or training. Greenway's Form ADV Part 2A is available upon request and provides additional information about our services, fees, and conflicts of interest. The information contained herein is as of the date published and may be subject to change without notice.
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