Trump Accounts: Why Grandparents Should Proceed Carefully

As new planning opportunities emerge, it’s natural to want to take action early—especially when it involves helping the next generation.

One of the more talked-about developments right now is the introduction of Trump Accounts, a new tax-deferred savings vehicle designed for children.

But before grandparents rush to open accounts for their grandchildren, there’s an important reality to understand:

The rules aren’t fully clear—and acting too quickly could create unintended issues.

What Are Trump Accounts?

Trump Accounts are expected to become a new way to build long-term, tax-advantaged savings for children, with contributions beginning as early as July 4, 2026.

While funding isn’t available yet, the ability to open accounts has already begun—and that’s where complications are starting to surface.

The Key Issue: Who Is Allowed to Open the Account?

The IRS has outlined a strict order of priority for who can establish a Trump Account:

1. Legal guardian
2. Parent
3. Adult sibling
4. Grandparent

In other words, grandparents are last in line.

This matters more than it may seem.

Where Things Get Complicated

There are only a few situations where a grandparent can legally open a Trump Account:

1. For children born after January 1, 2025

A grandparent can open the account only if the child is their dependent.

2. For children born before 2025

A grandparent can step in only if no higher-priority individual is “available.”

And here’s the problem:

The IRS hasn’t clearly defined what “available” means.

Does it mean:

• The parent is deceased?
• The parent is uninvolved?
• The parent simply hasn’t acted yet?

At this point, there’s no clear answer.

A Risk Most People Don’t Realize

When opening a Trump Account, the individual must sign under penalty of perjury.

That’s standard for many IRS-related forms—but in this case, there’s a disconnect:

• The rules require you to confirm that no higher-priority person is available
• The actual form doesn’t clearly spell that out

This creates a real risk:

• The account could later be deemed invalid
• Or worse, the person opening it could be seen as making an incorrect legal declaration

Even if it was unintentional.

Why This Matters for Families

We often see grandparents take an active role in financial planning for grandchildren—whether through 529 plans, custodial accounts, or direct gifting strategies.

Trump Accounts may eventually become another valuable tool.

But right now, the execution matters just as much as the idea.

Acting too early—without clarity—can create complications that may outweigh the benefits.

A More Thoughtful Approach

At times like this, the best move isn’t speed—it’s discipline.

Until additional IRS guidance is released, a more prudent approach may be:

• Coordinate with parents or guardians first
• Ensure the right person is opening the account
• Wait for clearer definitions and finalized rules

Good planning isn’t about being first—it’s about being right.

The Bottom Line

Trump Accounts may become a meaningful part of multi-generational planning.

But today, they come with uncertainty—particularly around who is authorized to open them.

For grandparents, the intention to help is admirable.

The key is making sure that intention is supported by clear rules and proper execution.

A Helpful Next Step

If you’re considering strategies to support children or grandchildren—whether through Trump Accounts, 529 plans, or other vehicles—we’re happy to help you evaluate the options in the context of your broader plan.

Because when it comes to family wealth, coordination and clarity matter just as much as opportunity.