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To: LemonHead who wrote (14578)	1/25/2001 3:22:28 PM
From: Steve Grabczyk	Read Replies (1) \| Respond to of 18928

Hi Keith: Well, FWIW, our kids each have taxable gifted UGMA portfolios. You control until their 18. After that it's theirs. They are responsible for taxes associated with with the accounts. If the amount is large, you might look into trusts which can be structured in numerous ways. I've never looked into education IRA's , but typical IRA's are only available to them if they have earned income. Up to individual max of $2000. Our daughter earned over that amount in 1999, so we opened a ROTH IRA for her last spring. I convinced her that this was a good long term deal by creating a 40 year spreadsheet with $2000/year in contributions earning average of 8%. This compounded to a few million if memory serves, so that's all it took. We started her on that journey last year. Regards, Steve ps: I think I needed for you to change the subject. Apparently the jury is still out.

To: LemonHead who wrote (14578)	1/25/2001 4:18:54 PM
From: Bernie Goldberg	Read Replies (1) \| Respond to of 18928

Hi, Don't know how much your son makes but I would recommend Uniform Gift to Minor. You would control it until he is 18 or whatever in your state. Taxes would be based on his tax bracket. With an IRA you would be limited as to how much you could put in it on an annual basis. Usually not enough to make a difference. The only problem with a Uniform Gift is that the money is his period. When he reaches the age of majority, he can do whatever he wants to do with it. He takes over control, and you would have nothing to say about it at that time. Just my 2 cents. Bernie

To: LemonHead who wrote (14578)	1/26/2001 12:27:44 AM
From: matvest	Read Replies (1) \| Respond to of 18928

HI Keith, I think there are only two ways to go on your son's investment account, the UGMA or a Trust. As several have stated the UGMA is both cheap to set up and maintain, BUT at 18 it is his money. The trust will require paying a lawyer and additional paperwork, BUT you can keep control of the money until well after he is grown. Unless the amount is so small that he can't get into trouble with it at 18, I would favor the trust. I know that according to my son, I had an amazing increase in IQ between his 18th and 22nd birthdays. :) I personally think the UGMA should be changed to allow distribution to the beneficiary at 21. Anyway, FWIW, I would suggest you talk to a lawyer versed in estate planning for advice specific to Arkansas. Good luck and I hope he appreciates your thoughtfulness. Larry M