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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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- Fall '10
- Taxation in the United States, tax credit, Taxation in the United Kingdom, 529 plan, Tax free growth