These Grandparents Have $90,000 For Their Grandkids — They’d Rather Give Them An Asset Than A Check

Caroline Lubinsky

Tue, August 11, 2026 at 5:46 PM GMT+3 9 min read

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A retired couple, both 68, set aside $90,000 they eventually want to leave to their three grandchildren. Rather than splitting the money into three checks and handing it over, they want to keep the money invested for another 15 to 20 years.

Their thinking is simple: If the money remains invested, the grandchildren could eventually inherit an asset that has had decades to potentially grow rather than receiving a lump sum at a young age.

The math illustrates why time can matter. If $90,000 earned an average 7% annual return and all gains were reinvested, it would grow to roughly $248,000 after 15 years and about $348,000 after 20 years. That's a hypothetical illustration, not a guaranteed real estate return, but it shows how compounding can potentially turn a relatively modest starting amount into a substantially larger legacy.

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For the grandparents, the goal isn't simply to give each grandchild $30,000 today. It's to give the money time to work.

Why Real Estate Instead Of A Savings Account?

The couple could leave the $90,000 in a savings account or CD, which could provide liquidity and relatively low risk. But those options may offer less potential for long-term growth than investments that involve market risk.

Real estate can provide two potential sources of return: rental income and changes in property value. Neither is guaranteed, however, and real estate comes with its own risks, including property expenses, changes in rental demand, market declines and limited liquidity.

That's why the grandparents' decision isn't necessarily about finding the investment with the highest possible return. It's about finding an investment structure that fits their goal of keeping the money invested for the long term.

The Problem With Splitting $90,000 In Cash

Divided equally, $90,000 would give each grandchild $30,000 today.

That could be a meaningful gift. It could help with college costs, a first home, debt or other major expenses. But once the money is handed over, the grandparents have little control over how it is ultimately used.

Keeping the money invested allows them to focus on a different objective: creating a financial asset that can potentially continue growing before the grandchildren receive it.

The trade-off is that investments aren't guaranteed to increase in value. A diversified portfolio, for example, could produce a very different result from the hypothetical 7% illustration above, while real estate can also lose value or generate less income than expected.

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How Fractional Real Estate Investing Works

Buying and managing a rental property outright isn't necessarily practical for a retired couple. A single property can require a substantial upfront investment, along with ongoing expenses and decisions involving tenants, repairs, insurance and maintenance.

Fractional real estate investing offers another approach. Platforms such as Arrived allow investors to purchase fractional interests in individual rental properties rather than buying an entire home themselves.

Arrived currently advertises investments starting at $100 on eligible offerings, allowing investors to gain exposure to rental properties without purchasing an entire property. The platform also handles property management responsibilities for its rental-home investments.

For someone who wants real estate exposure without becoming a landlord, that structure can make the asset class more accessible.

It also doesn't eliminate investment risk. Property values and rental income can fluctuate, and real estate investments may be less liquid than money held in a bank account or publicly traded securities.

What About Gift And Estate Taxes?

The grandparents also need to consider how the eventual transfer will be structured.

For 2026, the federal annual gift-tax exclusion is $19,000 per recipient, per donor. That means each grandparent can generally give up to $19,000 to each grandchild during the year without that qualifying gift counting against the donor's lifetime gift and estate tax exemption.

With three grandchildren, two grandparents could potentially make $114,000 of qualifying annual-exclusion gifts in a year. However, gift-splitting, trusts and other structures can create additional tax and reporting considerations, so the couple should consult a qualified tax professional before making large transfers.

The annual exclusion also doesn't mean every transfer involving a trust or investment automatically receives the same treatment. The timing and structure of the gift matter.

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Setting Up The Investment For Young Grandchildren

If the grandchildren are minors, the grandparents may need a custodial arrangement, trust or another structure to hold the assets until the children reach the appropriate age.

A trust can also provide more control over when beneficiaries receive the money. Depending on how the trust is drafted, the grandparents could establish different distribution points rather than having the entire inheritance become available at once when a grandchild reaches adulthood.

For example, a trust might make portions of the assets available at different ages. The exact terms would need to be established with an estate-planning attorney, and the tax consequences can depend on how the trust and gifts are structured.

The important distinction is that the grandparents aren't simply deciding how much each grandchild gets. They're also deciding when the grandchildren should gain control of the assets.

Turning A One-Time Gift Into A Long-Term Investment

The grandparents don't have to choose real estate simply because they want to leave a legacy. Stocks, bonds, mutual funds, exchange-traded funds and other investments can also be used for long-term wealth building.

But for a couple that specifically wants real estate exposure without becoming landlords, fractional ownership can provide another option.

Through Arrived, investors can purchase fractional interests in rental properties and potentially receive rental income and appreciation over time, while the platform handles property management.

For these grandparents, that's the appeal: Instead of writing three $30,000 checks today, they can keep the $90,000 invested and give their grandchildren the potential benefit of another 15 or 20 years of compounding.

There are no guarantees that the investment will reach a particular value, and any family considering this approach should weigh taxes, liquidity, diversification and investment risk before committing the money.

But the underlying idea is straightforward: a legacy doesn't necessarily have to be a check. It can be an asset that has had years to grow before the next generation ever takes control of it.

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Building Wealth Across More Than Just the Market

Building a resilient portfolio means thinking beyond a single asset or market trend. Economic cycles shift, sectors rise and fall, and no one investment performs well in every environment. That's why many investors look to diversify with platforms that provide access to real estate, fixed-income opportunities, precious metals, and even self-directed retirement accounts. By spreading exposure across multiple asset classes, it becomes easier to manage risk, capture steady returns, and create long-term wealth that isn't tied to the fortunes of just one company or industry.

Arrived

Backed by Jeff Bezos, Arrived Homes makes real estate investing accessible with a low barrier to entry. Investors canbuy fractional shares of single-family rentals and vacation homes starting with as little as $100. This allows everyday investors to diversify into real estate, collect rental income, and build long-term wealth without needing to manage properties directly.

Realberry

Institutional-quality real estate has traditionally been difficult for individual investors to access.Realberry gives accredited investors direct access to private real estate opportunities backed by a team with 35 years of experience, $3.4 billion in assets under management, and $481 million in cumulative distributions paid to investors as of Q4 2025, according to the company. With a portfolio spanning 13 million square feet across seven U.S. states, Realberry focuses on acquiring, developing, and managing real estate with an emphasis on long-term value creation while its principals often invest alongside clients to help align interests.

FarmTogether

Farmland has historically held its value through market volatility and delivered returns uncorrelated to stocks and bonds. For accredited investors,FarmTogether offers direct access to high-quality U.S. farmland starting at $15,000 — fully managed, with no landlord headaches.

Immersed

Immersed is building technology for the future of work through spatial computing. Known for its AR/VR productivity platform that enables users to work across multiple virtual screens, the company has grown to more than 1.5 million users worldwide. Immersed is also developing Visor, a lightweight headset designed specifically for professional productivity, positioning the company at the intersection of remote work, extended reality (XR), and next-generation computing.

Fundrise

Private real estate and private credit can add income and stability to a stock-heavy portfolio.Fundrise offers access to diversified private real estate and credit strategies through an easy-to-use platform, with professionally managed portfolios designed to generate passive income and long-term growth.

Mode Mobile

Mode Mobile is changing the way people interact with their phones by letting users earn money from the same apps and activities they already use every day. Instead of platforms keeping all the advertising revenue, Mode Mobile shares a portion back with users who engage with content, play games, and scroll on their devices. Named one of Deloitte's fastest-growing software companies in North America, the company has built a large beta user base and is scaling a model that turns everyday smartphone usage into a potential income stream.

EquityMultiple

For accredited investors looking beyond stocks and bonds, EquityMultiple provides access to vetted commercial real estate deals starting at $5,000, with only ~5% of opportunities passing their due diligence process.

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This article These Grandparents Have $90,000 For Their Grandkids — They'd Rather Give Them An Asset Than A Check originally appeared on Benzinga.com