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Path: utzoo!linus!decvax!harpo!seismo!hao!csu-cs!silver
From: silver@csu-cs.UUCP
Newsgroups: net.invest
Subject: Re: Clifford Trusts, Custodian Accts, etc
Message-ID: <2390@csu-cs.UUCP>
Date: Sat, 10-Sep-83 01:05:44 EDT
Article-I.D.: csu-cs.2390
Posted: Sat Sep 10 01:05:44 1983
Date-Received: Sun, 4-Sep-83 14:04:21 EDT
References: dciem.343
Lines: 20


I'm no expert but I know from  recent  experience  that a gift under the
UGtMA* is trivial to make.  You just fill out a little card and open the
account or whatever.  The money then belongs legally to the minor but as
guardian  you can use it "for the benefit of the minor" by  claiming  an
emergency  (and  possibly  have to answer to a court  later if the minor
demands an accounting  upon reaching  majority).  Meanwhile,  you DO pay
taxes on the money that goes into the gift  (whenever  you earn it), but
the  interest  on it  (which  can be  substantial  over  time) is in the
minor's name, ergo tax free (probably).

The  preceding  information  is what I learned by talking to an  account
specialist  at a local  savings bank.  It might be wrong, and  certainly
doesn't address all the possible  options.  I suggest you do the same --
talk to a specialist wherever you want to put the money.

Alan Silverstein, Hewlett-Packard Fort Collins Systems Division, Colorado
ucbvax!hplabs!hpfcla!ajs, 303-226-3800 x3053, N 40 31'31" W 105 00'43"

*UGtMA == Uniform Gift to Minors Act