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A number of years ago my children each recieved inheritance in the form of Custodial Accounts... With me as the custodian. The investments have done fine, but I am concerned about the effect of these accounts on their scholarship eligability etc. as I seriously doubt that there will be enough to put them through college. I also am very much aware that at 18 the child can "take charge". I have occasional nightmares featuring the kids, fast cars and trips to Europe.

A better solution might be to set up some kind of trust, with funds ear-marked for college. Control could be passed at an age that you choose (25yoa sounds good) and you could add stipulations (if not used for college expences, 1/2 reverts to you etc.)
I'm not too sure how all this works, but I wanted to give you an alternative.

Personally, if I could legally convert the custodial accounts to some kind of trust, I would be more than happy to pay the difference in taxes.
Anybody have any ideas??

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