The Motley Fool Discussion Boards

Previous Page

Financial Planning / Paying For College


Subject:  Re: Gifting Stock for College Education Date:  12/16/2003  10:10 AM
Author:  juiceb Number:  5691 of 8571

Check out this web site for information on equity compensation rules as it pertains to taxation. I have purchased 2 of the books and found them easy to read and very up-to-date.

Thanks for the link! I actually am really familiar with the tax laws associated with the ESPP because I used to be a stock plan administrator (we don't have any ISO's through DELL, so no evil AMT worries there), but the site had really good information on UTMA's. (I don't know why I wrote UTGMA before... I guess I was trying to combine the two, LOL!)

We could definitely wait, and then gift her the money once she actually reaches college. That might be what we end up doing... I just wanted to know if I could use this as a 1st birthday present for her. We're talking about a small amount, maybe 20 shares (~$700). A UTMA might be the best option because it's a small amount so it shouldn't affect her financial aid too much, and she won't have a tax liability until the shares are sold, right?

What kind of fees are usually associated with opening a UTMA account? Will the fees eat up most of my contribution?

Thanks for everyone's help!

:-) Juice
Copyright 1996-2021 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us