Grandparents want to give $$$ to grandaughter. Does it need to go into trust?

[Anonymous]

Anonymous wrote:One other option is a custodial account. These were widely used before 529's and have the advantage that the money does not have to be used for college. Most of the money given to our DCs by grandparents is put in a 529 but we also keep a smaller portion in a custodial account. I agree that a trust is not necessary for $10k.

From the web: Custodial accounts—Uniform Gift to Minors Act (UGMA) accounts or Uniform Transfer to Minors Act (UTMA) accounts—are another tax-advantaged way to save for college. A parent, grandparent or other adult is custodian for the account and makes all the investment decisions until the child for whom the account was opened reaches the age of majority. UGMA accounts are limited to money and securities.

Any bunk account titled in a minors name is a custodial account- or joint account- with a parent on it.

For a money board this board is so wildly entertaining whenever a “gift” question comes up.

Pp is this a one time or annual thing?

[Anonymous]

Anonymous wrote:

Anonymous wrote:That amount isn't taxable but I'd be disinclined to simply put it in a savings account where she could access it and buy a car at age 16 or blow it on clothes, for example. I'd definitely advocate for putting it in a 529 or bonds or other investment vehicle so that it benefits your DD and is available when she is an adult but not something she can access on her own while still young.

Honey minors can’t buy cars. They can’t legally enter into contracts.

This is a strange post.

The post is 11 years old so the giftee is probably no longer a minor and maybe she did buy a car with the money.

[Anonymous]

Anonymous wrote:Do you have a 529 plan set up for her? That might be a good way to go.

Yes, this is what we did.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:That amount isn't taxable but I'd be disinclined to simply put it in a savings account where she could access it and buy a car at age 16 or blow it on clothes, for example. I'd definitely advocate for putting it in a 529 or bonds or other investment vehicle so that it benefits your DD and is available when she is an adult but not something she can access on her own while still young.

Honey minors can’t buy cars. They can’t legally enter into contracts.

This is a strange post.

The post is 11 years old so the giftee is probably no longer a minor and maybe she did buy a car with the money.

Ha! Thanks I didn’t notice that.