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Should You Help Out Your Adult Kids Financially?

  • Writer: Watercolor Financial
    Watercolor Financial
  • Sep 17, 2025
  • 2 min read

Updated: 5 days ago



Should you gift your adult kids money? It depends. If you have the capacity to do so without hurting your future situation, it is something to consider.


In 2025 a person can give up to $19,000 to any number of individuals without triggering gift tax or requiring a special tax form. Married couples can each give their child $19,000 separately for a total of $38,000 tax-free. [1]


Emotional and financial risks and rewards:


Be clear on your expectations for the gift. If you think you will be resentful of what they spend the gift on, perhaps you shouldn’t give it. You might give guidance on how the funds are used, but the decision ultimately rests with the person receiving the money.


People rarely inherit money when they most need it. Very often, adult children inherit money when they are in their peak earning years, and in a high tax bracket. The average age at which people inherit money is between 50 and 60. [2]


jar of money labeled mortgage

In contrast, helping your kids during their early years can have a lasting impact. Gifting money to adult children from age 25-40 is probably when they need it most. At that age, it may be a lifeline to help with a house down payment, a weekend away from the young children, or just to pay the babysitter for more frequent date nights. If you want to spend more time with your adult children and their families, consider instead paying for the holiday together by renting the VRBO, buying the tickets, taking everyone on a cruise, or paying all the costs for the family reunion. This can help the cousins get to know each other if they live in different cities, and it can be a great investment in family relationships. The time to invest in experiences is while you can enjoy them.


We can help you think through the strategies on gifting and how you may want to structure this, and present it to your family. Click this link to make an appointment.


[1] https://www.fidelity.com/viewpoints/wealth-management/insights/lifetime-gift-and-estate-tax-exclusions

[2] https://budgetmodel.wharton.upenn.edu/issues/2021/7/16/inheritances-by-age-and-income-group?



 
 

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