The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies

URL:  http://boards.fool.com/the-problem-with-dd-gifting-the-money-to-you-to-30315030.aspx

Subject:  Re: Uncharted waters Date:  10/12/2012  8:22 AM
Author:  irasmilo Number:  116786 of 121219

The problem with DD gifting the money to you to place in a 529 for her is that she is "incapable" of making that gift. That is, she doesn't have the legal capacity to make a gift.

I was involved in a recent discussion of this point elsewhere and learned that most, if not all, 529 plans have procedures for transfers from UTMA accounts. In effect, the 529 retains UTMA characteristics until the beneficiary reaches majority.


My language was imprecise. I meant to address the issue of transfering the funds to a 529 owned by the parent, not a custodial 529.

Ira
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us