eudaimoniac
Confused about dryer sheets
- Joined
- Dec 11, 2007
- Messages
- 9
I have two Utma/Ugma accounts set up for my kids. Do I report the ordinary/qualified dividends and capital gains on my tax return?
While we're on the UTMA/UTGA topic...is there anything special to do when taking money out for college? My daughter will enter next year. She'll be 18, and I set up a UTMA in NC where the age is 21, so I'll still be in control of it. Can I transfer it to my account as needed to pay for her tuition and other expenses? Or do I have to transfer it to an account of hers? Or open some new account with checkwriting ability in the same way I opened this one, in her name with me as custodian? Or somehow pay expenses directly from it?
While we're on the UTMA/UTGA topic...is there anything special to do when taking money out for college? My daughter will enter next year. She'll be 18, and I set up a UTMA in NC where the age is 21, so I'll still be in control of it. Can I transfer it to my account as needed to pay for her tuition and other expenses? Or do I have to transfer it to an account of hers? Or open some new account with checkwriting ability in the same way I opened this one, in her name with me as custodian? Or somehow pay expenses directly from it?
Interesting choice of Biblical passages.2Cor521
I rolled my kids UGMA's into 529's. The advantage is that if used for college, the gains become tax free. The only difference is that once registered as an UGMA it can't be changed. Therefore, if the kids want to take the money and blow it at age 18/21, you can't stop them.
While we're on the UTMA/UTGA topic...is there anything special to do when taking money out for college? My daughter will enter next year. She'll be 18, and I set up a UTMA in NC where the age is 21, so I'll still be in control of it. Can I transfer it to my account as needed to pay for her tuition and other expenses? Or do I have to transfer it to an account of hers? Or open some new account with checkwriting ability in the same way I opened this one, in her name with me as custodian? Or somehow pay expenses directly from it?
What if you "accidentally" don't TELL them they had said money? I have seen that tactic used with great success a few times........
Until the child comes back to sue the parent. I've seen that tactic used with great success a few times too.
It's not legally hers until age 21, so you are the boss. The IRS trust you, not her....... As long as you have proof IF THE IRS ASKS about HOW the money was spent, and it was for the welfare of the child, it's all good.