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Hi, my name is Mark. I would be happy to help you.
How old are the grandchildren?
There are a could of ways that this could be handled. There is no way to avoid taxes. He could hire the grandkids as employees. He would be able to deduct the payments on the C-corporation. He would of course need to pay associated payroll taxes. The grandkids would need to pick up the wages as income. Most likely the tax impact to them would be minimal. Another option would be to contribute the $10,000 into 529 plans for each grandchild. The earnings from these accounts grow tax free and the distributions are tax free as long as they are used for qualified educational expenses.
Hi Earlene, my name is***** will be happy to help you with your question.