Two attractive financial options for some of our clients exploring estate planning options for their grandchildren can be found with the Gifts to Minors Act (UGMA) and the Uniform Transfers to Minors Act. These are two college savings accounts which allow a grandparent to gift money to an account set up by the parent of a minor child as a custodial account. The account, in the name of the child, allows gifting without tax liability; such gifts are irrevocable, but you can keep control of the funds in terms of where it will be invested.<\/p>\n
The Gifts to Minors Act is typically limited to investments towards certificates of deposit, life insurance and cash, while the Uniform Transfers to Minors Act allows you to invest in stocks, bonds, real estate and mutual finds. Both types of accounts should be managed by someone other than a parent; a parent would incur taxes on the (more…)<\/span><\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Two attractive financial options for some of our clients exploring estate planning options for their grandchildren can be found with the Gifts to Minors Act (UGMA) and the Uniform Transfers to Minors Act. These are two college savings accounts which…<\/span><\/p>\n