Parents and families are starting to hear a lot about “Trump Accounts” and how they might help children build long term savings. Because these new accounts also touch on tax planning and estate planning, it is important to understand at a high level what they are (and what they are not).What is a Trump Account?Trump Accounts (also known as as “Internal Revenue Code Section 530A accounts”) are tax advantaged investment accounts designed to help children build wealth over time. They were created by the One, Big, Beautiful Bill Act (OBBBA), which was signed into law on July 2, 2025. However, the accounts themselves will not come into existence until July 4, 2026, which has prompted them to receive more media attention in recent weeks and months.While Trump Accounts can be opened for any child younger than age 18, children who are born between January 1, 2025 and December 31, 2028 will receive an initial government “seed” contribution of $1,000 once an account is properly opened on their behalf. Children born outside of these birth years will not receive this initial contribution. Regardless of whether a child’s Trump Account receives the “seed” contribution, parents and, in some cases, employers can also make additional contributions within limits set by law.The funds in a Trump account will be in diversified stock market funds, and the investments grow tax deferred, meaning taxes on gains are postponed until money is withdrawn. Unlike some traditional retirement accounts, however, contributions are made with after tax dollars, so there is no immediate income tax deduction for contributors.While the child is still a minor, his or her Trump Account will be managed by the child’s parent or legal guardian. When a child owner of a Trump Account turns 18, he or she will gain control of the account and can choose to keep the money invested or withdraw money out of the account. Like a normal retirement account where penalties are imposed for withdrawing assets if the owner is younger than 59.5 years old, there are penalties for withdrawing the assets if the owner is older than 18 and younger than 59.5. However, no penalty will be imposed if the withdrawal occurs for certain qualified expenses, including education, starting a business, or purchasing a first home.How Trump Accounts Differ from 529 Plans and Other ToolsMany Pennsylvania parents are already familiar with 529 college savings plans and may wonder how Trump Accounts fit into the picture. Generally speaking, 529 plans are designed specifically for qualified education expenses and can offer tax free withdrawals when used for those purposes. Trump Accounts, by contrast, offer broader withdrawal options when a child reaches adulthood, but withdrawals are typically taxed as ordinary income.For some families, Trump Accounts may complement, not replace, existing tools like 529 plans, custodial accounts, and trusts. The right mix depends on your goals, your tax situation, and the level of control and protection you want over how and when a child receives funds.Why Trump Accounts Matter for Estate PlanningBecause Trump Accounts are created for children and involve meaningful long term investment, they naturally intersect with Wills, Trusts, and broader estate planning. Questions can arise about who should own and manage the account, how contributions are treated for federal gift and estate tax purposes, and how these accounts fit into an overall strategy for passing wealth to the next generation.In some cases, parents or grandparents may want to coordinate Trump Accounts with trusts or other planning techniques, especially where larger gifts or complex family situations are involved. Because this is a new program and some technical details are still developing, it is especially important to seek personalized advice before making significant contributions.How Gross McGinley Can HelpAt Gross McGinley, our Wills, Trusts, and Estates team works with families here in Pennsylvania to align tools like Trump Accounts with thoughtful, comprehensive estate plans. We help clients evaluate whether opening a Trump Account makes sense in their situation, how it interacts with existing planning, and what next steps may best support their long term goals.If you have questions about Trump Accounts, or how they may affect your estate and tax planning, you are welcome to contact our office to schedule a consultation with a Wills, Trusts, and Estates attorney. We can help you understand all your options and build a plan that reflects your financial objectives.