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Forum
-> Household Management
-> Finances
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amother
OP
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 Tue, Jul 06 2021, 12:12 pm
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Whats the best way to give a grandchild money (not much, about $1,000) that cant be touched until hes way older, and will accrue interest?
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amother
Maple
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Tue, Jul 06 2021, 12:15 pm
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Are you looking to prevent the parents from accessing the money? Also, do you plan to give this grandchild more money over the years? If so, it may be worth looking into a trust.
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amother
OP
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Tue, Jul 06 2021, 12:20 pm
| amother [ Maple ] wrote: | | Are you looking to prevent the parents from accessing the money? |
Yes
| amother [ Maple ] wrote: | | Also, do you plan to give this grandchild more money over the years? |
No, nothing major, only on certain occasions.
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amother
Leaf
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Tue, Jul 06 2021, 12:21 pm
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amother
NeonPink
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Tue, Jul 06 2021, 12:22 pm
| amother [ OP ] wrote: | | No, nothing major, only on certain occasions. |
Insist on a trust fund. Tell them to set one up.
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amother
OP
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Tue, Jul 06 2021, 12:28 pm
| amother [ NeonPink ] wrote: | | Insist on a trust fund. Tell them to set one up. |
Who is them?
I dont want to pay $1,000 to keep a $1,000 gift secure.
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amother
Lightcoral
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Tue, Jul 06 2021, 12:31 pm
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watergirl
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Tue, Jul 06 2021, 12:34 pm
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Put it in a CD in the child's name, but do not tell anyone about it. When the child is at the age you want him/her to have the money then tell the child directly.
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amother
Zinnia
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Tue, Jul 06 2021, 12:41 pm
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If you want it for far future, bonds are great. I have bonds a relative bought me when I was a baby, and they’ll mature by the time we have to send kids to school and need the money.
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Bluepink
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Tue, Jul 06 2021, 12:43 pm
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Be careful about putting money in the child’s name, especially without telling anyone. It may impact his or her ability to get federal Pell grants in the future, whether they are used for yeshiva or for college.
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zaq
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Tue, Jul 06 2021, 3:52 pm
Buy Israel Bonds that pay at maturity.
Or open a bank account in your name in trust for the child, and YOU manage the account.
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amother
OP
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Tue, Jul 06 2021, 4:08 pm
| zaq wrote: | | Or open a bank account in your name in trust for the child, and YOU manage the account. |
Any bank account I open will pay, at most, 1/2 of a percent these days.
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amother
Saddlebrown
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Tue, Jul 06 2021, 4:14 pm
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Open a separate account in your own name and give it to the child directly once they’re grown. You can also write them into your will if you want. If it’s less than $10,000 you really don’t have to worry about any tax consequences anyway.
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amother
Hyacinth
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Tue, Jul 06 2021, 7:30 pm
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If the money is to help with educational expenses down the road (like college or grad school), you could open a 529 account and name your grandchild as the beneficiary. Funds in a 529 can be invested and no taxes on the gains so long as the money is used for permitted purposes under the plan. NY’s plan is managed by vanguard and has good fund choices imo. It’s open to non-residents as well.
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amother
Calendula
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Tue, Jul 06 2021, 7:32 pm
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amother
Narcissus
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Tue, Jul 06 2021, 8:25 pm
This, a UTMA account. Can open one with any brokerage.
Just keep in mind, even though the child doesn't get it until he's 21, the money is legally his when the account is funded. You can't change your mind and take it back.
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amother
OP
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Tue, Jul 06 2021, 8:35 pm
| amother [ Narcissus ] wrote: | This, a UTMA account. Can open one with any brokerage.
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Whats the charge for opening it?
Does it even pay to pay a brokerage, for around $1,000?
Whats the average interest it yields?
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