On a side note, I started a savings account for my nephew a few months before he was born. I have no intention of ever telling him nor my sister about that account. It is for college, but I don't want either of them relying on it and, hence, not preparing for college expenses themselves.


Since you started it before he was born, I'm going to assume that it's an account in your name that you have earmarked for him. If, however, it is a UGMA account and is in his name and uses his SSN, you have to tell them about it because his parents are liable for the income taxes on the account. In addition, those assets must be reported and will be considered when diong financial aid applications.

If the account is in his name and uses his SSN, you may cause lots of problems if he doesn't know about it, particularly with the IRS. I doubt that's the kind of gift you had in mind.