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Author: TMFTaxes Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121061  
Subject: Re: Educational IRA Date: 1/18/1999 7:29 PM
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[[I read the E-IRA faq and it defines the account as a "custodial account", and
later uses the example that sonny takes his $8,000 and travels to Europe.

Who controls the funds in the E-IRA? Do my children gain control after age 18,
or do I retain control? ]]

You are basically the custodian or "trustee" of the account until the child reaches the age of majority. Once majority is reached, then the account can be used as the child sees fit.

Obviously, you'll still have some parental control (or at least I hope you will) when your child reaches that age, and the kid might be smart enough to know that if he makes you angry (by removing his funds), you could make his life VERY miserable.

But if he just doesn't care, of if you don't have enough persuasion, he can certainly get his hands on the funds and go skiing in Europe for a season.

But also remember, other than a TRUE TRUST, there are no real accounts that you have control over after the child reaches the age of majority.

TMF Taxes
Roy
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