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Started By
Message
what is the best way to give money to your nieces and nephews?
Posted on 9/24/12 at 9:55 am
Posted on 9/24/12 at 9:55 am
So the wife and I have decided to starting to fund our nieces and nephews college funds. However, we don't know the best way to do it.
here are some factors
a) My sister has two kids; my wife's sister has two kids
b) My sister's kids already have roth IRA and 529's set up. The others do not.
c) I want to make sure I get credit for it. I don't want these kids to think their parents funded that $$.
d) i don't want to make it a hassle for the parents. My grandparents gave me a load of stock in the 80s, which was so nice, I have never been able to sell it due to the way it was structured. Nice gesture, pain in the arse though.
e) we are going to fund somewhere around $500 per year per kid. Kids are 2, 4, 11, 14.
Any suggestions on how best to do it?
here are some factors
a) My sister has two kids; my wife's sister has two kids
b) My sister's kids already have roth IRA and 529's set up. The others do not.
c) I want to make sure I get credit for it. I don't want these kids to think their parents funded that $$.
d) i don't want to make it a hassle for the parents. My grandparents gave me a load of stock in the 80s, which was so nice, I have never been able to sell it due to the way it was structured. Nice gesture, pain in the arse though.
e) we are going to fund somewhere around $500 per year per kid. Kids are 2, 4, 11, 14.
Any suggestions on how best to do it?
6
Posted on 9/24/12 at 11:49 am to buddhavista
my uncle and his count wife did this for my brother and i
i think they gave us savings bonds
easiest way to do it would be to open a savings and make contributions while they are young. give them a certificate or something at christmas to show them what you put in. when they are 18, put them on the account. or just pay their tuition from the account
i dont know anything about the tax ramifications of the 529 stuff
i think they gave us savings bonds
easiest way to do it would be to open a savings and make contributions while they are young. give them a certificate or something at christmas to show them what you put in. when they are 18, put them on the account. or just pay their tuition from the account
i dont know anything about the tax ramifications of the 529 stuff
Posted on 9/24/12 at 3:40 pm to buddhavista
Maybe start a trust for them?
Posted on 9/24/12 at 3:53 pm to Gujam8
I think I speak for most of us here when I ask if we can see pics of your Uncle's wife.
TIA
TIA
Posted on 9/24/12 at 3:57 pm to buddhavista
There was an excellent article about this in the Wall Street Journal either last week or the week before. I'd recommend having a friend that has a WSJ subscription sending you a link to the article. It describes ways to give them money that will still give them the greatest chance at receiving scholarships.
Posted on 9/24/12 at 4:25 pm to buddhavista
Coverdell ESA or a custodial account brah, Scottrade has them as would most other brokers prolly. You get all the control and credit.
LINK
LINK
Posted on 9/24/12 at 5:46 pm to GFunk
quote:
I think I speak for most of us here when I ask if we can see pics of your Uncle's wife.
Money Talk board meet the OT Lounge
Posted on 9/25/12 at 10:05 am to Who Me
I have actually been giving my 3 godchildren, silver coins and bars as I purchase them here and there. There is no tax issue to worry about this way. And when they are ready they can cash them in and do what they want with them.
Posted on 9/25/12 at 10:09 am to buddhavista
I did LA Start 529 accounts for my neices and nephews, took the state tax deduction, got a 2% match. I am owner, they are the beneficiaries.
I don't know how much fun it will be for them when these account reimburse their parents for college expenses. Perhaps I should put money away in my name for them to backpack across Europe or something in between college semesters.
I don't know how much fun it will be for them when these account reimburse their parents for college expenses. Perhaps I should put money away in my name for them to backpack across Europe or something in between college semesters.
Posted on 9/25/12 at 12:43 pm to buddhavista
The absolute best way to provide for the education of your nieces and nephews is to pay the college directly. There are no limits to the amount you can pay the college for tuition, books, lab fees, room and board. All payments must go direct to the school. After paying the school expenses you can still give money to your nieces and nephews for personal purposes keeping in mind the annual gift exclusion amounts.
I'm assuming you are going to be OT wealthy, and you will have the chump change necessary to pay for your nieces and nephews private college educations.
I'm assuming you are going to be OT wealthy, and you will have the chump change necessary to pay for your nieces and nephews private college educations.
Posted on 9/25/12 at 1:20 pm to Poodlebrain
quote:
The absolute best way to provide for the education of your nieces and nephews is to pay the college directly.
the problem is.....I will be retired by the time the youngest goes to college, or that is the plan. I think my generosity might fade when faced with a fixed income.
I am not quite OT baller, so I wont be paying for private education.
THanks to all for the suggestions.
I actually have been giving them precious metals already but want to diversify the investments.
This post was edited on 9/25/12 at 1:20 pm
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