UnThreaded | Threaded | Whole Thread (1) | Ignore Thread Prev | Next
Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75340  
Subject: Re: IRA choices for YOUNG investor ??? Date: 2/14/1998 10:26 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
<<"It was my impression that minors NEEDED a custodial account since they were NOT allowed to own securities in their own name. How could a 17 year old be listed as the owner of stock?"

Not according to Waterhouse. I filled out the forms with my daughter's name and signature. They could see her birthdate made her a minor, but they processed it as a regular IRA. My guess is that custodial accounts require some sort of UGMA or trust legal framework, both of which are incompatible with the IRA framework. Maybe TMF Pixy can help us out on this.>>

Normally, that's correct. However, within the IRA the shares are held by the custodian in trust for the account owner, in this case your daughter. Thus, her shares technically are not in her name but in the broker's street name. You are most probably listed as her "designated agent" authorized to contract for and make trades within the account.

Regards……Pixy
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (1) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Post of the Day:
Value Hounds

Medallion Financial: TAXI!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement