Support our online development, and advance our onground research initiatives in free market economics, as we seek to showcase the brightest Next-Gen minds.
THE ME-P DISCLAIMER: Posts, comments and opinions do not necessarily represent iMBA, Inc., but become our property after submission. Copyright © 2006 to-date. iMBA, Inc allows colleges, universities, medical and financial professionals and related clinics, hospitals and non-profit healthcare organizations to distribute our proprietary essays, photos, videos, audios and other documents; etc. However, please review copyright and usage information for each individual asset before submission to us, and/or placement on your publication or web site. Attestation references, citations and/or back-links are required. All other assets are property of the individual copyright holder.
Titling Assets Correctly
Staff Writers
Generally, medical professionals should not save in a child’s name. Yes, there is a small tax break, but all the assets in their name diminish the amount of financial aid available to them.
Also, your child can take control of the assets at age 18 or 21, depending on your state’s law.
Other drawbacks to be aware of include:
· The custodian has the power to invest and draw funds for the benefit of the child; but who defines – what is a benefit?
· Earned income will be taxed at the child’s rate.
· The gift is irrevocable, and may be included in your estate for federal tax purposes, if you die prior to the age of majority.
The Uniform Gift to Minors Act (UGMA) and the slightly different Uniform Transfers to Minors Act (UTMA) are therefore usually not helpful when it comes to financial aid, and not using them will ensure that you will decide how to spend the funds.
What is your experience in this area relative to college savings?
Share this:
Filed under: Financial Planning | Tagged: Financial Planning |
The Leading Business Education Network for Doctors, Financial Advisors and Health Industry Consultants 
Leave a comment