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[[I guess I never really understood what an UGMA was. Now that all of you have made it
clear that it is the kids money, I understand. Now let me be sure I have this right. I want to either
purchase shares of stock or get another mutual fund. In order to do that, I must sell the shares of
the other fund and pay whatever gains have occurred (using the kid's rates).]]

If you want to get out of your current mutual fund, I believe that your only "out" would be to sell the shares. If there is any gain or loss on the shares, you'd need to file a tax return for the kids. If there is a gain, there may be some tax to pay. If there is a loss, it may generate a capital loss to carry forward for future years.

But I would certainly suggest that you read more about the "kiddie tax" rules in the Taxes FAQ area as a starting point. Then you'll have a little bit more of an idea how the tax structure works for kids under 14 years old. If all of your kids are age 14 or over, simply let me know and I'll give you a rundown of their rules.

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