How to open a trust or?? for a grandson

Post in the B&I section. But most tax advisors can tell you this. Personally, we do not advise it unless you have serious (Over $10m) in net assets or you do not trust your wife and kids. But if you do it as a basic pay out at a certain age, we also recommend 35 as the age when they receive the assets. This tends to avoid the "Paris Hilton" effect and can force them to make a living on their own and perhaps learn something about money

 

just contribute it to a Coverdell ESA or a 529 plan if the money is intended for college, otherwise, UTMA w/ you or grandma as the custodian.

simple.

 

Ok, I re-read your post. Open a Vanguard account in his name and deposit the money in it. Better would be a Roth IRA, though. At 18 19 a $1000 account opened now at 8 will not really be that much. (But every little bit helps!!!)

 

I'm pretty sure my WI license is still valid, PM me if you want some more specific (and free) advice...

 

can't do any of those things for a minor. sorry mang.

 

529 PLAN FOR HIM

MAKE HIS PARENTS CUSTODIAL FOR HIM, SO HE CANT TOUCH IT OR PISS IT AWAY, UNTIL THEY DECIDE TO GIVE IT UP

I HAVE 3 FOR MY 3 KIDS..


PS..IF THE BOYS MOM HAS A "SPENDING PROBLEM" GIVE IT TO ANOTHER RELATIVE OR YOURSELF TO HOLD

BRUCE

 

I didn't think this merited raising your voice like that...

 

Bruce always types like that. (Eye problems.)

Huh?

How is that right? My neighbor did less than 6 months ago.

 

As I under stand 529 plans must be sponsored by a state even though residents of most states can put their money in any state plan. Where does she live because last I looked WI is not one of them.

 

IM NOT, I ALWAYS TYPE LIKE THIS ( 6 YRS NOW ON F-CHAT)

BTW, YOUR WELCOME FOR THE ADVICE !!

 

Ok, I checked. It can in fact be done. (Most times there is a way to do just about anything.)




So to recap, a 529 may be the best idea even if you def want to make it a education only fund. Problem is WI either does not sponsor it or is not the best place for it. Plans must be sponsored by a state even though residents of most states can put their money in any state plan. (I know that does not make much sense.) So check with a local pro but the states genneraly rated the highest are Utah, Iowa, and NY.

The only issue I see and why we do not recommend 529 is you have no clue what the kid may end up doing. The rule we use is don't save for college unless you are already saving for retirement. College can be paid for with loans, grants, military, scholarships, ect. Retirement is only for the people that save.

But for as little as $1000, I would start the kid an IRA. You have to give him a job but that is easy. Just say he helps around the house and he is paid 10 to $15 a week for it. Then deposit the total in the account at the end of the year. Again, speak to a local pro but it can be done.

 

if the Grandson is the sole beneficiary of the trust, just keep the bros wife OFF the trust and put Grandma or the father as trustee and the wife will have zero access

its much better to have 1 trust per person, they get very messy when there is more than 1 beneficiary

 

The age of 35 is a little late for the kid to receive college funds...

 

Read the post, I was talking about a general trust, not college funds.

 

Talk to an estate attorney and not a bunch of yahoos on an internet message board.

They will be able to walk you through what you want and get it set up for you.

 

Best thing is to talk to a trust atty and an accountant, might be a good time to renew the wills, and set up a tax shelter all at the same time

 

Doing this will cost more than the $1k Grandma is putting into a fund for the kid.

 

but its a great investment and could save A LOT more than $1k later on in taxes

They are all interrelatedso its a great time to do it all

 

UTMA for the kiddo..

 

you can't contribute to an IRA of any sort without earned income... my guess is this kid doesn't have earned income...

otherwise, you can't just open an account in a minor's name... it has to be registered as a UTMA, etc...

/story.

 

it's been a number of years years since I set up some accounts for my kids so I'm a little rusty on the details, however I do remember getting one shocker from my accountant. Some of these custodial accounts require a full MANDATORY payout to your child at age 21! If this is not your intent (and it certainly wasn't mine) you need to be cognizant of these details.