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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 child’s marginal tax rate Government transfers Uniform Gifts to Minors Act Transfer of money or assets to the child Advantage: taxed at child’s rate Disadvantage: • Kiddie Tax First $18,00 is taxed at child’s 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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This note was uploaded on 12/01/2011 for the course HDFS 238 taught by Professor Boyce during the Fall '10 term at Michigan State University.
- Fall '10