Give Money to Adult Kids Now, Not Later, Advisers Say

A growing number of financial advisers are urging retirees and near-retirees to consider transferring wealth to adult children and grandchildren while still alive, rather than leaving assets solely through a traditional estate. The approach, sometimes called "giving while living," allows donors to witness how gifts are used and potentially provide support at a time when younger family members need it most.

The strategy carries meaningful financial and emotional appeal. Adult children in their 30s and 40s often face peak financial pressure — mortgages, childcare, student debt — meaning a timely gift can have an outsized impact compared with an inheritance received decades later. Grandchildren can similarly benefit from early contributions to education savings or down-payment funds.

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However, advisers caution that generosity must be structured carefully to avoid jeopardizing the donor's own retirement security. The central risk is outliving one's assets, particularly as longer life expectancies stretch retirement timelines well beyond two decades for many Americans. Experts recommend donors conduct a thorough review of their own projected expenses, healthcare costs, and income streams before committing to significant transfers.

Tax considerations also play a role. Annual gift tax exclusions and lifetime exemptions under federal law provide structured pathways to transfer money without triggering tax liability, though rules can shift with future legislation. Coordination with an estate planning attorney or certified financial planner is widely recommended before making large gifts.

Ultimately, the "giving while living" philosophy represents a shift in how families think about multigenerational wealth — prioritizing present-day impact over posthumous transfer. Continue reading at MarketWatch.com