Opening savings accounts for my niece and nephew

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DebtFreeCrusader
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Opening savings accounts for my niece and nephew

Postby DebtFreeCrusader » Thu Dec 18, 2008 5:20 pm

I'd like to open accounts for them, but one thing to consider is that they live in MD while I'm in CT another is that if I'm teh trustee, the kids and I will have to walk into the bank in order to sign the account over to them.
I'd like some suggestions.
When you're good to others, you're best to yourself - B. Franklin

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pfblueprint
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Postby pfblueprint » Fri Dec 19, 2008 2:47 pm

You could always open an online savings account and work with the parents to get all the paperwork done?

jac
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Postby jac » Sun Dec 21, 2008 1:04 am

It isn't clear to me what you're trying to do, are you intending to put money aside for them yourself, or hoping to open an account that they will contribute to?

DebtFreeCrusader
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Postby DebtFreeCrusader » Mon Dec 22, 2008 6:06 am

jac wrote:are you intending to put money aside for them yourself,


Yes


jac wrote:or hoping to open an account that they will contribute to?


They can't; they're young thus unemployable.
When you're good to others, you're best to yourself - B. Franklin

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Postby MoneyTrev » Mon Dec 22, 2008 2:34 pm

Talk to the bank you want to apply to and they'll give you the instructions you need.

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Postby Sam » Mon Jan 19, 2009 9:29 am

Why not set up a 529 for them?
Sam

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Postby Ryuns » Mon Jan 19, 2009 4:51 pm

If you're the only one contributing (or you and their parents), make it a 529.

If you want to give them seed money for something that they can contribute to, a savings account might work.


debtfreecrusader wrote:They can't; they're young thus unemployable.


It's not a Roth IRA. They don't need a W-2. Every child gets money from relatives and miscellaneous places for various reasons. Talk to their mom/dad and they might want to use this as a teaching tool (eg, 50% of every dollar they get goes to the savings account, etc).

Ryan

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Postby pnoyes » Tue Jan 20, 2009 7:51 pm

Hello,

I have been lurking on this site, but finally decided to register in the forum. I have to agree with the previous posters, the 529 is the ideal account for this purpose. The money grows tax free if used for education. Until the money is turned over to the beneficiary when they turn 18, the money is technically still in your name. If for whatever reason you decide that the money should go to some other relative, you could do that, and all of the tax benefits would still be in place. Basically the account allows you to be generous, grows tax free, but still gives you control. Just my 2 cents.

-Peter

(By the way this editor works horribly in the Chrome browser)

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Postby Daedala » Fri Jan 23, 2009 9:04 am

When I gave $500 to my niece, I just sent it to my sister and asked her to set up a CD account in ING bank.

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Postby B Simple » Tue Jan 27, 2009 8:58 pm

A couple of things to consider

What is the objective of the account? Education or saving
What happen to the account when the child becomes of age?
How much do you plan to contribute?
Do you want to maintain control over the account?

Once you answer these questions you will have clearer picture of what type of account and how it can be opened.


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