Are Trump Accounts the right planning tool for your family?

High-net-worth families are well served by traditional planning vehicles such as trusts, 529 plans, gifting strategies, and diversified investment portfolios. Trump Accounts are a new type of savings account for children. The question becomes “Does adding this to our overall strategy meaningfully improve outcomes for my family?”

Trump Accounts, established under the One Big Beautiful Bill Act, are designed to give American children a young start in long term investing and encourage early equity ownership.

How Do Trump Accounts Work?

Funds are invested in broad U.S. market index strategies, grow tax-deferred, and are locked in until age 18, when ownership of the account transfers to the child. The account then functions like a traditional individual retirement account (IRA).  The child can use the savings for things like education, buying a home, or starting a business, or can continue to allow the account to grow.

Although all U.S. children under age 18 with a valid social security number are eligible for a Trump Account, for children born between January 1, 2025, and December 31, 2028, the federal government will make a one-time $1,000 contribution, effectively jump-starting the account. Families may contribute up to $5,000 annually, though contributions are optional. Over an 18-year horizon, even modest annual contributions can compound into a meaningful base of capital by the time a child reaches adulthood.

Who Is Most Likely to Benefit?

Trump Accounts will likely be most compelling for families who:

• Want to introduce market-based investing early without tying funds exclusively to education
• Value simplicity and low-cost market exposure over investment customization
• Are already maxing out other planning vehicles and view this as a supplement
• Are focused on teaching financial responsibility by letting children step into ownership at age 18
• Can afford to contribute the maximum contribution limit ($5,000 annually)

Trump Accounts tend to suit financially established families looking for a simple, supplemental way to build long-term investment exposure.

How Does It Fit with Existing Planning?

Trump Accounts are not designed to replace 529 plans, trusts, or custodial accounts. Instead, they supplement them.

Unlike education-focused plans, Trump Accounts are purposefully open-ended, and unlike traditional custodial accounts, they emphasize investment discipline by preventing early withdrawals. That combination makes them a useful “baseline” asset that grows passively in the background while more customized strategies address specific family objectives.

On their own, Trump Accounts may be less impactful than other structures families have in place. Many of the features of a Trump Account are already available with existing investing tools. However, as a parallel strategy, especially for younger children, it can encourage a sense of ownership, teach financial stewardship, and reinforce broader wealth transfer and financial literacy goals.

How Families Are Getting Started

Establishing a Trump Account requires an election with the IRS, and contributions will not begin until mid-2026. Most families are approaching this in one of two ways:

• Early election, later funding: Making the election now to secure eligibility, then deciding over time how much to contribute.
• Integrated planning review: Evaluating the account as part of a broader wealth strategy to determine whether it complements existing gifting, education, and estate plans.

We Can Help

While Trump Accounts may not be an ideal fit for every family, they can add meaningful value for those who prioritize disciplined investing and early financial engagement by establishing an investment fund that grows alongside the child.

The most important step is deciding where it fits in the context of your family’s broader planning framework.

As with any planning decision, the real value comes from thoughtful integration.

Contact our High Net Worth team to get started.

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The information provided in this communication is of a general nature and should not be considered professional advice. You should not act upon the information provided without obtaining specific professional advice. The information above is subject to change.