Hi Fools:Here's the deal: my son was given some Exxon stock by my parents in a UGMA DRIP. I'm the custodian. With the advent of the Education IRA, I'm wondering whether it would be worth it to sell some of the stock & start an Education IRA with the proceeds. FWIW, my wife thinks we should just hang on to the XON stock until Junior starts college [just call her the Cash King girl, all the Talbott's cashiers do! ;-)]. I think I can do better using the Keystone or Formula 90 growth stock screen. (That's the medium term plan; with contributions limited to $500 per year, a mutual fund is the only logical place to start out.)My questions:1) Is this legal? My understanding of UGMA rules is that I (the custodian) cannot spend the account's money on items which I am legally obliged to provide. Does college money fall under this umbrella (I'm guessing no)? 2) Does the fact that all his shares are held by the XON DRIP program affect anything? IOW, how do I keep my kid's money separate from my own once the stock is sold & XON sends me a check? Can I open a second UGMA account with my broker towards this end?3) If it's all legal, then is it Foolish? I'm guessing that zero taxes on a Keystone/F90 account will easily beat long term cap gains on XON sale in 2008. Am I missing something?All comments welcome & thanks in advance.Chris
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