The Source for Freedom and Self-Reliant Information[1]

Thomas Jefferson defined rightful liberty as “unobstructed action according to our will within limits drawn around us by the equal rights of others—I do not add ‘within the limits of the law,’ because law is often but the tyrant’s will, and always so when it violates the right of an individual.”

A Grandparent‑Friendly Guide to Trump Accounts, UTMA/UGMA Accounts, and a DRIP Strategy You Can Control

As grandparents, we love helping our grandchildren get a strong start in life. But with all the new savings programs and rules, it can feel confusing to know what you can do, what you can’t do, and what you shouldn’t worry about at all. This guide keeps things simple and friendly.

Trump Accounts: What Grandparents Need to Know

A Trump Account is a savings program that only a parent or legal guardian can open. That’s just how the program is set up — grandparents aren’t allowed to be the account owner.

But here’s the part many grandparents find reassuring:

The easiest time for parents to open a Trump Account is when they file their tax return.

The account is linked to the child’s Social Security information, which is already part of the tax filing process. So, for most families, opening the account during tax season is the smoothest, simplest approach.

And there is absolutely NO reason to rush.

If the parents file an extension and do not submit their return until October 15, 2026, nothing changes.

The account will still open normally
The child will not lose any benefits
Funding rules for 2026 and beyond stay exactly the same

So, if your children are busy, overwhelmed, or simply not ready yet — it’s perfectly fine. There is no penalty for waiting.

What grandparents can do

Even though you can’t open the Trump account, you can contribute up to $5,000 per year, following normal gift tax rules. For most families, this doesn’t create any tax issues.

**UTMA/UGMA Accounts: The Account Grandparents Can Open**

Unlike Trump Accounts, you can open a UTMA/UGMA account yourself. You can be the custodian, choose the investments, and manage the account until your grandchild becomes an adult.

This gives you:

Control
Flexibility
The ability to invest according to your own values and strategy

And this is where the DRIP approach shines.

A Simple, Grandparent‑Friendly Strategy: DRIPs

Many grandparents prefer a long‑term, steady approach using Dividend Reinvestment Plans (DRIPs) — the kind of strategy we promote at the Jeffersonian Group.

A DRIP lets you:

Buy shares of well‑known companies (like Hershey, Coca-Cola, and McDonald’s)
Automatically reinvest dividends into more shares
Build long‑term growth without constant management
Use companies your grandchild will recognize and understand

You can hold DRIP investments inside a UTMA/UGMA account you control, making it a simple, hands‑on way to build something meaningful for your grandchild.

Putting It All Together

Here’s the easiest way to think about your options:

Trump Account

Parent opens it (best done at tax time)
No need to rush — even an October 15, 2026 filing is fine
You can contribute up to $5,000 a year
You don’t control the investments

UTMA/UGMA Account

You can open it
You control the investments
You can use a DRIP strategy for steady, long‑term growth

Many grandparents choose to do both: contribute to the Trump Account and open their own UTMA/UGMA account using a DRIP approach they can manage themselves. Get your grandchildren started now and get a copy of The Best Kept Secret to Financial Freedom, Second Edition, which is available through our website or directly from Amazon.com. Beginning on page 50, is an explanation on how to open UTMA/UGMA accounts and a listing of DRIP stocks to acquire for your grandchildren, along with how to get them involved early, so that they become financially literate and financially independent at an early age.

Dum Spiro Spero—While I breathe, I hope.

Slàinte mhath,

Robert (Mike) G. Beard Jr., C.P.A., C.G.M.A., J.D., LL.M.

[1] Each Jeffersonian Group, LLC (www.jeffersoniangroup.com) publication is intended solely for information purposes and is not intended nor does it purport to provide legal, tax, individual investment advice, estate planning advice, medical advice, insurance, or business advice. In addition, information and analysis is compiled from sources believed to be reliable but such accuracy cannot be guaranteed. Readers should do their own research and consult with expert medical, legal, tax, insurance, business, and financial counsel before taking any action.