dcsimg The Get Rich Slowly Forums • View topic - Opening savings accounts for my niece and nephew

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 Post subject: Opening savings accounts for my niece and nephew
PostPosted: Thu Dec 18, 2008 5:20 pm 

Joined: Sun Feb 17, 2008 4:39 am
Posts: 322
Location: Woodstock, CT
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.

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PostPosted: Fri Dec 19, 2008 2:47 pm 
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Joined: Thu Apr 05, 2007 7:33 am
Posts: 37
Location: Baltimore, MD
You could always open an online savings account and work with the parents to get all the paperwork done?

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PostPosted: Sun Dec 21, 2008 1:04 am 

Joined: Wed May 02, 2007 6:52 am
Posts: 168
Location: Seattle
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?


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PostPosted: Mon Dec 22, 2008 6:06 am 

Joined: Sun Feb 17, 2008 4:39 am
Posts: 322
Location: Woodstock, CT
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.

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PostPosted: Mon Dec 22, 2008 2:34 pm 

Joined: Sun Dec 21, 2008 1:00 pm
Posts: 13
Talk to the bank you want to apply to and they'll give you the instructions you need.


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PostPosted: Mon Jan 19, 2009 9:29 am 

Joined: Sun Apr 29, 2007 8:11 am
Posts: 1088
Location: Sunny Florida
Why not set up a 529 for them?

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PostPosted: Mon Jan 19, 2009 4:51 pm 

Joined: Fri May 18, 2007 8:25 am
Posts: 520
Location: Santa Barbara
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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PostPosted: Tue Jan 20, 2009 7:51 pm 

Joined: Tue Jan 20, 2009 7:44 pm
Posts: 2
Location: Los Angeles Area
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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PostPosted: Fri Jan 23, 2009 9:04 am 

Joined: Sun Jun 10, 2007 3:19 pm
Posts: 620
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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PostPosted: Tue Jan 27, 2009 8:58 pm 

Joined: Sun Jan 25, 2009 1:50 pm
Posts: 15
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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