TOPAZ:G:cnrdean@ucbvax.UUCP (07/06/83)
I have a 6 month old daughter. I want to start a savings account for her. - Can anyone advise me as to whether I should put the account in her name only, or in both of our names? - In each case, is the interest taxable on my income? - Can I make withdrawls from the account if it is in her name only? - Can you suggest reading material on the subject? I would ask someone at a savings and loan, but they OFTEN provide incorrect information.
amyh@fluke.UUCP (07/11/83)
Regarding savings for kids: What my folks did (for kids' college educations)
was to set up a custodial account at their bank. The child is the owner,
with a parent as custodian. The parent can make transactions, and so can
the child. You'd have to check on termination of the custodial agreement;
I believe the setup at the time my folks were doing it was that custody
terminated at the child's legal majority.
Amy Heidner John Fluke Mfg {microsoft|lbl-csam|uw-beaver}!fluke!amyhsilver@csu-cs.UUCP (07/18/83)
Nowadays there's something called the "Uniform Gifts to Minors Act". I don't know all the details but I know enough about it to be using it. You still pay taxes on your income, including any portion(s) given as gift(s), but your child pays the taxes (if any) on interest, dividends, etc. from the gift(s) once invested. The advantage is that you (actually, your child) can start earning "tax free" income now on money you'd like to give your child eventually anyway. As guardian of a gift account, you can withdraw funds from it if needed for the welfare of the child, but can be held accountable in court later. The account can take a variety of forms, from stocks to savings. Talk to a broker or account adviser for more information. Alan Silverstein, Hewlett-Packard Fort Collins Systems Division, Colorado ucbvax!hplabs!hpfcld!ajs, 303-226-3800 x3053, N 40 31'31" W 105 00'43"
dave@utcsrgv.UUCP (Dave Sherman) (07/18/83)
The Uniform Gifts to Minors Act deals primarily with the problem of the poor people who work in coal mines not having the right clothes. It was felt that they should all wear red uniforms, and that these uniforms should be donated by taxpayers in general, who under this legislation are entitled to a tax deduction. (-: Dave Sherman Toronto Ontario (where until just recently there really WAS a Pregnant Mares' Urine Act) Canada