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I've read the "Investing for Kids" series and am looking at the comparison matrix at the end. The one big question in mind is "Aren't options available for parents who want control of the money they are setting aside for their children that get tax advantages as well?". Why do these things have to be so restrictive?

As a parent, I am planning on using this account as an incentive to my children to do something constructive with their life (college, business startup, etc.). What options do I have in that three years from when she graduates from high-school to when she gains control of the monies at 21 if she has decided to screw off for the rest of her life?

Here is a scenerio that comes to mind...
I set up a Roth IRA for my child and contribute the $2000 a year. I set it up so that she gains control of it when she turns 21. At 18, she decides to do something with her life and go to college and some of the funds are used to pay for her first years. At age 19, she decides to drop out of college. Can I transfer that account to one in my name? Without taking a major tax hit?


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