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The rate of return for annuities and especially for life insurance is terrible, far less than for equity investments, and I would avoid them like the plague. A 9 year old certainly has a long investment horizon and equities is where she should be.

See a lawyer, which you will need to set up a trust, before you see an insurance agent who will want to sell you insurance. What is frequently called a "Crummy" trust trust is probably the vehicle you want. You can contribute $10,000 per year ($20,000 if you are married )to the trust if you wish and you can set the terms to make the property available when you want.

Income taxes are not much of a problem since the investments will be for growth, presumably, and growth investments like Microsoft, AIG, etc. pay very little in taxable income.

I hope this is helpful.
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