December 24, 2025

This holiday season, consider turning your cash gifts into long-lasting financial legacies using smart tools like investment accounts, trusts, and strategic transfers. Here’s how.

Giving Cash This Holiday? Here’s How to Make It Count Financially

The holidays are a season of generosity, and many families and business owners consider giving cash gifts to loved ones. But if you’re looking to go beyond the simple envelope of money and want your gift to have lasting impact, it’s worth exploring how to give strategically—using investment accounts and other financial tools.

Whether you’re gifting to children, grandchildren, or even adult beneficiaries, there are smart ways to structure your holiday giving that align with your long-term legacy and wealth planning goals.

1. Understand Annual Gifting Limits

For 2025, the IRS allows individuals to gift up to $19,000 per recipient annually without triggering gift tax reporting. Married couples can combine their gifts for a total of $38,000 per recipient. This is a powerful opportunity to pass wealth tax-efficiently—especially if you start gifting regularly over multiple years.

Tip: Make sure gifts are completed before December 31 to count for the current tax year.

2. Consider a 529 Plan for Education

If you’re gifting to children or grandchildren with future education needs, a 529 College Savings Plan is a tax-advantaged way to turn cash into growth. Contributions grow tax-free, and withdrawals for qualified education expenses are also tax-free.

You can even front-load five years’ worth of gifts (up to $90,000 for individuals or $180,000 for couples) into a 529 plan without using up your lifetime gift exemption.

Why it works: It’s not just a gift—it’s a head start on their future.

3. Fund a Custodial Investment Account

A UTMA/UGMA account allows you to gift cash that can be invested in stocks, mutual funds, or ETFs under the child’s name. These accounts transfer to the child when they reach the age of majority (usually 18 or 21), giving them direct control.

While this may not offer the same tax efficiency as a 529, it provides more flexibility in how the funds can be used—whether for a first car, business startup, or other personal goals.

4. Use a Roth IRA (If They Have Earned Income)

For teens or young adults who have earned income, gifting money into a Roth IRA is one of the most powerful long-term moves you can make. Contributions grow tax-free and can be withdrawn in retirement—or earlier for qualifying reasons like a first home purchase.

Pro tip: Help them set up a custodial Roth IRA, and match their earned income with your gift.

5. Use a Trust to Maintain Control

If you’re gifting significant amounts or want to add guardrails to how the funds are used, a revocable or irrevocable trust can be structured to distribute funds under specific conditions—age, education milestones, etc.

This is ideal for business owners or high-net-worth individuals seeking to protect assets from creditors, divorce, or misuse, while still expressing generosity.

6. Think Beyond the Gift: Make It a Teachable Moment

A financial gift is more than just money—it’s a chance to instill values. Consider coupling your cash gift with a conversation about saving, investing, and responsible financial stewardship.

For families focused on building generational wealth, these moments are where legacy truly begins.

Turn Gifting Into a Legacy Strategy

Holiday gifting doesn’t have to be short-term. With the right tools, you can ensure your generosity supports your loved ones now and builds a legacy for years to come.

At Omni 360 Advisors, we help clients align holiday gifting with broader wealth strategies. And at Omni Legacy Law, we assist in structuring trusts and estate plans that make your gifts count in the long term.

🎁 Ready to Gift Smarter This Holiday Season?
📅 Schedule a strategy session with Omni 360 Advisors to explore tax-efficient gifting and investment options.
📜 Or, book an estate planning review with Omni Legacy Law to discuss how your holiday generosity fits into your long-term legacy plan.