Do you want to help put young grandchildren through college? Establish Section 529 plan accounts and name the kids as the account beneficiaries. Future distributions for qualified higher-education expenses are tax-free.
Extra benefit: Normally, such transfers are sheltered from gift tax by a limited annual exclusion ($13,000 per child for 2010). For a lump-sum contribution to establish a Section 529 plan account, however, you can take advantage of up five years' worth of exclusions to shelter the initial contribution ($65,000 for 2010).