What a nice thing to do! I don’t know the best way, but please save all paperwork such as dates bought and price. My husband has stocks his grandparents bought him when he was a baby or toddler, but he has no information about exactly when or what they paid. It has caused us so much frustration and the tax implications are confusing.
I considered that but i decided I wanted to give her some flexibility in how she might want to use this money at a future time.What about a “529” college savings plan? The contribution you make may be tax deductible in certain states for state income tax purposes.
When I bought my Disney stock, there was a provision that if I bought $1000 worth, there was no % fee. I wonder if they have that now, or if we could buy stock for free if we have a financial advisor.
I will look at the 529 program again before making a final decision. Thank youPlease take a second look at the 529 edu fund and talk with a professional. There is FLEXIBILITY for her!!! Our GS graduated from high school last year and we took cash out of his edu fund for on the ground education: a month in Europe. The 529 rules don't consider travel as legit education (duh). For non-legit withdrawals you or she should only be paying income tax on the pro-rated interest earned ... a small price to pay. She could use the funds to open her own business or spend a couple of months at WDW. PLEASE Consult a Professional ~ which I am NOT.