F---ing I-Bonds

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:For those of you doing accounts for the kids, is it still your money, or are you basically ceding $20k to your kids?

Legally, it's ceding money to them although you control it as long as they are minors.

If you don't want to actually give them money, just don't tell them. You create the account in their name, control the userid/login, etc and when it's time to move the money over to yourself, just do it (as long as you stay within the gift tax limits). They would be none the wiser.

That would be stealing from your kids. If you opened the account in their name, it’s theirs and you are the custodian with a legal responsibility to manage it for them. You could use it for their benefit, like school or camp, but you can’t just buy yourself a car with your kids’ money.

Not when they are minors and you are their parents and you funded the account.

No, once you gifted the money to them it’s theirs and you are a fiduciary with the duty to spend it for their benefit. They could sue you when they reach 18 for breach of fiduciary duty or you could be criminally prosecuted for theft.

Oh give me a break. Do you drive 55 on the beltway at all times?

[Anonymous]

Just make sure you use it for their educational expenses later on. Avoids taxes that way too

[Anonymous]

Anonymous wrote:Just make sure you use it for their educational expenses later on. Avoids taxes that way too

No-- rolling into their 529 may avoid taxes, but ibonds in the name of the kid are not tax exempt when used for college

[Anonymous]

Anonymous wrote:I bought a bunch at the 3.54% rate so another 6 months at 7% is fantastic. I'm sure it will go down to 0% next cycle however.

How do you "buy a bunch"? The limit is $10,000.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:For those of you doing accounts for the kids, is it still your money, or are you basically ceding $20k to your kids?

Legally, it's ceding money to them although you control it as long as they are minors.

If you don't want to actually give them money, just don't tell them. You create the account in their name, control the userid/login, etc and when it's time to move the money over to yourself, just do it (as long as you stay within the gift tax limits). They would be none the wiser.

That would be stealing from your kids. If you opened the account in their name, it’s theirs and you are the custodian with a legal responsibility to manage it for them. You could use it for their benefit, like school or camp, but you can’t just buy yourself a car with your kids’ money.

Not when they are minors and you are their parents and you funded the account.

You are wrong about this but maybe more importantly savings bonds are registered securities which means you need the gov’t’s approval to transfer them to anyone so it may not be as easy as you think to move money around.

You can't transfer I bonds, but you can sell them and transfer the money. No one cares about that.

Yes, you can. However, that counts against your investment cap for the year in which you transfer.

From their FAQ page:

Transferring Securities

Are EE and I Bonds transferable?
Yes. The owner can transfer EE and I Bonds to another person with a TreasuryDirect account; however, you must wait five business days after the purchase date to transfer the bonds.

Are there any fees for transferring EE and I Bonds?
No. We don't charge any fees for transferring EE and I Bonds.

How do I transfer a savings bond?
A savings bond may be transferred either in full or in part to another TreasuryDirect account. See How do I transfer savings bonds from my TreasuryDirect account to another TreasuryDirect account?.

If I transfer savings bonds to another TreasuryDirect customer, how does it affect the recipient's purchase limitation?
If you transfer savings bonds to another customer, the amount of the transfer is applied toward the annual purchase limitation for each savings bond type in the year the transfer occurs.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:For those of you doing accounts for the kids, is it still your money, or are you basically ceding $20k to your kids?

Legally, it's ceding money to them although you control it as long as they are minors.

If you don't want to actually give them money, just don't tell them. You create the account in their name, control the userid/login, etc and when it's time to move the money over to yourself, just do it (as long as you stay within the gift tax limits). They would be none the wiser.

That would be stealing from your kids. If you opened the account in their name, it’s theirs and you are the custodian with a legal responsibility to manage it for them. You could use it for their benefit, like school or camp, but you can’t just buy yourself a car with your kids’ money.

Not when they are minors and you are their parents and you funded the account.

No, once you gifted the money to them it’s theirs and you are a fiduciary with the duty to spend it for their benefit. They could sue you when they reach 18 for breach of fiduciary duty or you could be criminally prosecuted for theft.

I worry about many many things in life but this will never be one of them.

[Anonymous]

Do you cheat on your taxes too because it is so unlikely you will be caught for certain less than kosher “deductions”?

[Anonymous]

Anonymous wrote:Do you cheat on your taxes too because it is so unlikely you will be caught for certain less than kosher “deductions”?

No laws are broken here. The money invested will beneift the family and thus the child. Impossible to say funds do not benefit the child.

[Anonymous]

https://www.thebalance.com/spending-childs-utma-money-illegal-358134

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:For those of you doing accounts for the kids, is it still your money, or are you basically ceding $20k to your kids?

Legally, it's ceding money to them although you control it as long as they are minors.

If you don't want to actually give them money, just don't tell them. You create the account in their name, control the userid/login, etc and when it's time to move the money over to yourself, just do it (as long as you stay within the gift tax limits). They would be none the wiser.

That would be stealing from your kids. If you opened the account in their name, it’s theirs and you are the custodian with a legal responsibility to manage it for them. You could use it for their benefit, like school or camp, but you can’t just buy yourself a car with your kids’ money.

Not when they are minors and you are their parents and you funded the account.

No, once you gifted the money to them it’s theirs and you are a fiduciary with the duty to spend it for their benefit. They could sue you when they reach 18 for breach of fiduciary duty or you could be criminally prosecuted for theft.

Oh give me a break. Do you drive 55 on the beltway at all times?

I doubt this is true as my mom is holding money in my name and it is causing issues with my spouses job and not disclosing and we spoke to a lawyer who said not much we can do.

[Anonymous]

Another catch is the tax deferred benefit has the low AGI limitation, right

[Anonymous]

Anonymous wrote:Another catch is the tax deferred benefit has the low AGI limitation, right

Everyone gets tax deferral. If you want to use it for education tax free you are subject to AGI limits

[Anonymous]

Anonymous wrote:

Anonymous wrote:Another catch is the tax deferred benefit has the low AGI limitation, right

Everyone gets tax deferral. If you want to use it for education tax free you are subject to AGI limits

Thanks! Just bought 10k, easy process took 10 minutes only