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Unformatted text preview: Investment choices Brokers fees High fees Annual fees Administration to state o Family income transfers What is the gift tax? Money Child Taxed at childs marginal tax rate Government transfers Uniform Gifts to Minors Act Transfer of money or assets to the child Advantage: taxed at childs rate Disadvantage: Kiddie Tax First $18,00 is taxed at childs rate Child is given right of possession at age 18 Trusts Minor Trust Designed to use the $13,000 gift tax exclusion for money transfers Child given right or possession at age 21 Current Income Trust Income must be distributed annually No age requirement for distribution Savingsforcollege.com...
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- Fall '10