{"id":13261,"date":"2026-02-15T07:00:08","date_gmt":"2026-02-15T13:00:08","guid":{"rendered":"https:\/\/legaltalktexas.hammerle.com\/?p=13261"},"modified":"2026-02-19T11:34:57","modified_gmt":"2026-02-19T17:34:57","slug":"estate-planning-strategies-for-minor-children","status":"publish","type":"post","link":"https:\/\/hammerle.com\/legaltalk\/legal-talk\/estate-planning-strategies-for-minor-children\/","title":{"rendered":"Estate Planning Strategies for Minor Children: Trump Accounts, 529 Plans, and Trusts"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">There is a new benefit available to families with minor children: a 530A account commonly referred to as the Trump account. Every parent owes it to their child to look into the possibilities.\u00a0\u00a0<\/span><\/p>\n<h2><b>What Is a Trump Account (530A Account)?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The Trump account is a tax-advantaged IRA-like account that is designed specifically for children. Trump accounts become available July 5, 2026. Opening the account starts with filing Form 4537 or using the <\/span><a href=\"https:\/\/trumpaccounts.gov.\"><span style=\"font-weight: 400;\">online tool<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">While some details have yet to be released, here is what we know so far about Trump accounts.\u00a0<\/span><\/p>\n<h3><b>Purpose of a Trump Account<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">The purpose of the account is to help families begin saving and investing early. The account can be established for a child under age 18 who has a Social Security number. Only one account per child is allowed. The child is both the beneficiary and the legal owner of the account, while an adult acts on the child\u2019s behalf until age 18. Typically, the adult is the parent or guardian of the child.\u00a0<\/span><\/p>\n<h3><b>Government Seed Contribution<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">To get things started, the government will seed each account with a one-time $1,000 contribution for U.S. citizens born between Jan. 1, 2025, and Dec. 31, 2028. Children who are not eligible for this contribution can still have an account.\u00a0<\/span><\/p>\n<h3><b>Contribution Rules and Limits<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Contributions from the account can come from parents, other individuals, employers and charitable organizations. The amount that can be contributed is capped at $5,000; after 2027, that amount will be indexed for inflation.\u00a0<\/span><\/p>\n<h3><b>Tax Treatment and Withdrawals<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Contributions made on an after-tax basis are not taxed again when withdrawn. However, withdrawals are generally not permitted before age 18, except for rollovers. Once the beneficiary turns 18, then he or she has several options. These include keeping the account as a Trump account under IRA rules, rolling over the balance into a traditional IRA or another eligible retirement account, or converting the account to a Roth IRA if that is appropriate.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Early withdrawals from the account are typically taxable. There is no penalty if the withdrawals are used for a qualifying expense, such as education, birth or adoption, eligible medical expenses or a first-time home purchase. Withdrawals not used for a qualifying expense may be subject to a 10% penalty.\u00a0<\/span><\/p>\n<h3><b>Investment Requirements for Trump Accounts<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">The rules for investing funds in a Trump account are simple. They can be invested in mutual funds or exchange-traded ETFs, as long as the funds track the S&amp;P 500 or another equity index. At least 90% must be invested in U.S. companies. Eligible funds must have an expense ratio of .10% or less.\u00a0<\/span><\/p>\n<h2><b>How Trump Accounts Fit Into Estate Planning for Minor Children<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The Trump funds are a good addition to a parent\u2019s <\/span><a href=\"https:\/\/hammerle.com\/practice-areas\/estate-planning\/\"><span style=\"font-weight: 400;\">estate planning<\/span><\/a><span style=\"font-weight: 400;\"> options for their minor child. Funding a 529 account for a child is another good idea.\u00a0<\/span><\/p>\n<h3><b>Expanded Uses of 529 Plans<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">The permissible purposes for a 529 have recently expanded to allow up to $20,000 annually per beneficiary for K-12 tuition, tutoring, special needs therapies, non-degree credentialing programs and, sometimes, rollovers to Roth IRAs.<\/span><\/p>\n<h2><b>Essential Estate Planning Documents for Parents<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">\u00a0A comprehensive parental estate plan should include a trust set up for the benefit of the minor child (or until the child reaches a certain age, such as 25 or 30) to hold any inheritance or life insurance proceeds.\u00a0<\/span><\/p>\n<h3><b>Trusts, Life Insurance, and Guardianship<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">It is always a good idea for a parent to have a life insurance policy on their own life, payable to the trust, to make sure there are sufficient funds to pay for the child\u2019s health, education, maintenance and support in the event the parent dies. The plan should also include a will and a designation of <\/span><a href=\"https:\/\/hammerle.com\/legaltalk\/category\/adult-guardianship\/\"><span style=\"font-weight: 400;\">guardian <\/span><\/a><span style=\"font-weight: 400;\">for the minor child.\u00a0<\/span><\/p>\n<h2><b>Final Thoughts on Planning for Your Child\u2019s Future<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Parents have never had a broader array of planning tools. Take advantage of them now.\u00a0<\/span><\/p>\n<h2><b>Hammerle Morris Is Here to Help You Plan with Confidence<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">New tools like Trump accounts and expanded 529 plans can play an important role in planning for your child\u2019s future, especially when paired with a comprehensive estate plan.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">At <\/span><a href=\"https:\/\/hammerle.com\/\"><span style=\"font-weight: 400;\">Hammerle Morris Law Firm<\/span><\/a><span style=\"font-weight: 400;\">, we help families create plans that reflect their intentions and adapt to real-life needs. Schedule a <\/span><a href=\"https:\/\/hammerle.com\/lewisville-attorney\/#form\"><span style=\"font-weight: 400;\">consultation <\/span><\/a><span style=\"font-weight: 400;\">to protect your family\u2019s future with confidence.<\/span><\/p>\n<p><i><span style=\"font-weight: 400;\">Virginia Hammerle is an accredited estate planner and represents clients in estate planning, probate, guardianship, and contested litigation. She may be reached at <\/span><\/i><a href=\"mailto:legaltalktexas@hammerle.com\"><i><span style=\"font-weight: 400;\">legaltalktexas@hammerle.com<\/span><\/i><\/a><i><span style=\"font-weight: 400;\">. This blog contains general information only and does not constitute legal advice.<\/span><\/i><\/p>\n","protected":false},"excerpt":{"rendered":"<p>There is a new benefit available to families with minor children: a 530A account commonly referred to as the Trump account. Every parent owes it to their child to look into the possibilities.\u00a0\u00a0 What Is a Trump Account (530A Account)? The Trump account is a tax-advantaged IRA-like account that is designed specifically for children. Trump [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":13262,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[21],"tags":[],"class_list":{"0":"post-13261","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-legal-talk"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Planning for Minor Children: Trump Accounts, 529s &amp; Estate Plans<\/title>\n<meta name=\"description\" content=\"Learn about new planning options for minor children, including Trump accounts, expanded 529 plans, and essential estate planning documents.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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