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Wachovia not liquidating funds

Posted on by Taugami Posted in Correspondence 1 Comments ⇩

Since this is not the time to take risks with his money, you might consider the use of CDs of varying length to protect the asset until needed for college expenses. I thought I read where transferring from a UTMA to a places the funds in your name not his, since you can always withdraw and use it for your own benefit, if you pay the tax, so it would not seem OK to move the UTMA funds to a or Coverdell. UTMA withdrawl Posted by: Beyond the moral issue of decreasing the amount of funds in his UTMA, is this legal to do spend monies now for his anticipated college expenses? But I'll defer to someone with more experience here. Your minor is old enough to have some say in your anticipated expenditures, but the final decision is yours. For those that can liquidate the custodial account without getting hit, they can open a with the same beneficiary, but further changes in beneficiary are restricted to protect the original beneficiary interest of the child. Kaye Thomas , November 27, Upon liquidation, will he now be required to file even if the overall outcome of the Wachovia account was a loss? Herb , November 26, What would be the best reinvestment plan? A recent bill would extend the kiddie tax up until age 18, so if the gains are high enough the kid might pay some tax at your tax rate if under age 18 on December Changing to a Coverdell ESA does not seem to be a good idea, at his age. Contributions can only be made up to the minor's 18th birthday. A plan is possible, but returns might be limited if you will need to tap the balance in a year or so. Since investment volatility should be reduced when college age approaches, selling stock oriented investments under kiddie tax rules is unattractive.

Wachovia not liquidating funds


Upon liquidation, will he now be required to file even if the overall outcome of the Wachovia account was a loss? For those that can liquidate the custodial account without getting hit, they can open a with the same beneficiary, but further changes in beneficiary are restricted to protect the original beneficiary interest of the child. Herb , November 26, Not much time left for appreciation of the assets. Can I utilize parts of the UTMA for expenses for the child if they are beyong my parental expectations? In a plan with decent options, you can reallocate without current tax consequences, but to convert a custodial account over requires liquidation of the assets with probable tax consequences, therefore more people would favor the early on. The reason is that when you put money into a custodial account you create a custodianship that continues to exist even after you take the money out of that account, until it is either expended for the benefit of the minor or transferred to him or her at the end of the custodianship. Would winter clothing be considered that since it is not "normal" expenditures I currently have? Changing to a Coverdell ESA does not seem to be a good idea, at his age. Art , November 26, By liquidating before he turns 21, what consequences will be faced, especially if the remaining monies are reinvested in another Education account? If a custodian takes money out of a custodial account and puts it in a account, the custodian continues to have all the duties specified in UTMA, including preserving the assets for the benefit of the minor. Your minor is old enough to have some say in your anticipated expenditures, but the final decision is yours. UTMA withdrawl Posted by: I thought I read where transferring from a UTMA to a places the funds in your name not his, since you can always withdraw and use it for your own benefit, if you pay the tax, so it would not seem OK to move the UTMA funds to a or Coverdell. Beyond the moral issue of decreasing the amount of funds in his UTMA, is this legal to do spend monies now for his anticipated college expenses? Maybe you are just confusing the performance of the investment you chose with the UTMA concept. UTMA to Posted by: That would give you the greatest flexibility in making the expenditures you outlined above. What would be the best reinvestment plan? Since this is not the time to take risks with his money, you might consider the use of CDs of varying length to protect the asset until needed for college expenses. Buying winter clothing for your Hawaii-based but relocated child sounds reasonable, while buying lotto tickets in his name would not be. Liquidating the UTMA might generate capital gains or losses, all owned by the child. A recent bill would extend the kiddie tax up until age 18, so if the gains are high enough the kid might pay some tax at your tax rate if under age 18 on December Kaye Thomas , November 27, Contributions can only be made up to the minor's 18th birthday. Since investment volatility should be reduced when college age approaches, selling stock oriented investments under kiddie tax rules is unattractive.

Wachovia not liquidating funds


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