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Author: sfringer One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 27804  
Subject: Opening DRiP for Relatives Date: 9/4/2001 3:25 PM
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Hello,
I'm wondering what pointers I can get for opening a DRiP for a niece and nephew (on my wife's side) for Christmas. I'm not new to opening DRiPs, and have even opened them for my kids using Temper of the Times. Where my questions arise, what hurdles might I stumble on opening a DRiP as a gift for people not living in the same state as myself?
I have the recipient's socials, and their mom is 'hip' to the idea. Is it better to open it using her name as the custodian?
Any Foolish help would be appreciated.

Thanks,
Scott
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Author: Odee Big funky green star, 20000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 20425 of 27804
Subject: Re: Opening DRiP for Relatives Date: 9/4/2001 4:20 PM
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As long as you have their socials and their mom's approval - you would register the accounts as Jane Doe custodian for Little Jane Doe. It would be registered under the state that the child lives in. As long as you are comfortable with the mom being custodian. You may want to give them a copy of TMF Investing Without a Silver Spoon or one of the other recommended books by fellow DRiPpers. Explain to the mom and child that OCPs are just that: optional, not required.

I start accounts for nephews/nieces when they turn 13. I have the parent's approval first...otherwise I wouldn't have their socials. I try my best to have the child pick a stock they are familiar with. It's best to avoid those DRiPs which require more than 1 share (unless you are willing to start with that much), those with high fees and those with a high OCP which would be tough for a child. In one family, they would prefer to just add the designated money to a fund their children have, which is fine by me.

Using the Temper of Times form is very simple and may show an example about custodial accounts.

Odee

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Author: japper Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 20432 of 27804
Subject: Re: Opening DRiP for Relatives Date: 9/4/2001 7:50 PM
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Scott,
Great present! Glad to see that you have screened the idea with the parents too.

You can certainly use Temper to open the accounts in either your name as custodian or Mom's name. You will want to list the registration as Adult custodian for Neice/nephew under UGMA/UTMA their state of residence. You want to use their state since that is where they reside and under what rules they become age of majority.

Holler back if you have more questions,
jenn

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Author: sfringer One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 20449 of 27804
Subject: Re: Opening DRiP for Relatives Date: 9/5/2001 8:41 AM
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Thanks to the replies... I'll press forward with opening under their mom's name as custodian, I think that would be cleaner since I live in Florida, and they live in Michigan.

It's great to have such an enormous resource to tap!

Thanks gang!
Scott

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