2007-02-14 07:55:34 · 7 answers · asked by Jay Dub 3 in Business & Finance ➔ Personal Finance
First of all, with respect to "Joni," the gift tax exclusion has been raised to $12,000, and that is an annual limit, not "per gift." The best way to avoid gift taxation or a trust is a 529 college savings plan. You can make deposits totalling up to $60,000 in the first five years, and that can be in a single lump sum.
The funds grow tax deferred and are withdrawn tax free provided they are used for education.
2007-02-14 08:42:04 · answer #1 · answered by Rob D 5 · 1⤊ 2⤋
ASK YOUR NIECE PARENTS "WHAT IS XYX TRUST FUND". Most people don't know that all they need to do is put a saving account in the child's name under the child's SSN. This is the start, after that have everyone contribute to it birthdays, Christmas, new years, forth of July, Thanksgiving, you get the idea?
As a parent you should contribute annually, to the trust fund. There are people that can help manage a trust fund if it gets sizable ($10,000 or more).
2007-02-14 16:07:33 · answer #2 · answered by whatevit 5 · 0⤊ 0⤋
Savings Bonds.
2007-02-14 16:01:05 · answer #3 · answered by tooyoung2bagrannybabe 7 · 0⤊ 1⤋
With respect to Rob, the 2007 exclusion amount is $12,000.
I'd put it into a 529 account.
2007-02-14 18:24:52 · answer #4 · answered by derek 4 · 0⤊ 0⤋
Give your niece a savings bond
2007-02-14 16:02:56 · answer #5 · answered by Tim Rohan 3 · 0⤊ 1⤋
Talk with your brother/sister about if they have any type of educational savings account or 529 account set up for your neice. If they do, you can contribute to that, or set up your own 529 for her.
2007-02-14 20:33:03 · answer #6 · answered by Jen G 5 · 0⤊ 0⤋
Move the money into her account in incriments less then 10,000 this will cause you to aviod paying taxes on it!
2007-02-14 16:00:08 · answer #7 · answered by joniannuzzi 2 · 1⤊ 1⤋