Grandparents often want to shower their grandkids with love, and what better way than gifts? But many millennial parents see a problem: the stream of stuff is overwhelming, cluttered, and even counterproductive. There’s a better way to show love that supports future security rather than temporary delight.
The over-gifting problem (yes, it’s real)
Millennial parents have increasingly voiced frustration with grandparents who bring “three full loads of treasures” during visits, many of which end up unused, duplicated, or tossed (Upworthy, 2024). Some admit they can’t refuse for fear of hurting feelings, so the clutter piles up (Reddit, 2024).
It’s not just about physical space. Too much stuff can:
- Undermine parents’ goals for teaching value, minimalism, or delayed gratification (More Than Grand, 2024).
- Drown out the meaning of gifts. If every visit comes with a bag of “stuff,” then nothing feels special anymore.
- Cause friction. About 75% of surveyed parents say they wish grandparents would respect their boundaries (Upworthy, 2024).
- Promote consumer expectations, where children come to expect abundance rather than gratitude or effort.
What is UTMA (and why it’s often smarter than more stuff)
UTMA stands for Uniform Transfers to Minors Act. It is a legal vehicle that allows adults such as grandparents, parents, or friends to transfer money or assets to a minor while holding them in a custodial account until the child reaches a certain age (often between 18 and 25, depending on state) (Fidelity, 2024).
Why it beats piles of toys:
- Investment and growth: Funds in a UTMA can be invested and may grow over time.
- Irrevocable gift: Once contributed, it is the child’s property and cannot be taken back.
- Tax treatment: In 2025, the first $1,350 of unearned income is tax-free; the next $1,350 is taxed at the child’s rate; and income above $2,700 is taxed at the parents’ rate (Kitces, 2024).
- Flexible use: Funds can be used for anything that benefits the child, not just education.
- Estate and gift planning benefits: Contributions may reduce taxable estate and qualify for the annual gift exclusion.
But there are tradeoffs:
- Loss of control once the child reaches the age of majority.
- Financial aid impact, since assets are considered the child’s.
- Kiddie tax rules and paperwork.
- Gifts are irrevocable, so they cannot be taken back later.
Smarter gifting in practice
This doesn’t mean abandoning toys or fun. It means mixing short-term joy with long-term benefits. For example:
- Parents set boundaries and invite grandparents into the conversation.
- Use UTMA for milestone gifts such as birthdays or graduations.
- Pair a small toy with a UTMA contribution for balance.
- Make it educational by showing kids how their fund works.
- Revisit as the child gets closer to adulthood.
What’s the real gift?
Love isn’t measured by how many boxes are under the tree. The most durable gifts are seeds sown in security, opportunity, and agency. By choosing a UTMA, a grandparent says: I believe in your future more than I believe in adding another object to your room. That message can echo far longer than toys ever will.
Open a UNest UTMA and commit just $25 per month. Let your generosity build more than clutter and build a legacy.
