UTMA RE accounts? - Posted by sueC

Real Estate Investing Real Estate Financing
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Posted by Nate on February 23, 2001 at 14:44:43:

I am not sure why you want to get real estate into the name of your kid anyway. Make sure you check with your accountant because kids under age 14 who earn too much money or have too many investments in their own name can create all kinds of screwy tax situations.

Assuming you have a good reason and have verified that it will not create a tax problem,

  1. Why not use a trust? Make yourself the trustee, even.

  2. Why not establish a Roth IRA for the kid NOW? You can pay him/her $2000 per year (if you own a business, you can do this as long as the kid actually does some work – emptying the trash or answering the phone, you get my idea) and put it in the Roth IRA and invest that way. You could have his/her retirement paid for before she goes to college!

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UTMA RE accounts? - Posted by sueC

Posted by sueC on February 23, 2001 at 14:14:58:

I’m using Mid Ohio for my ROTH but I’d like to open a UTMA to invest in real estate for my kid - anyone know who would offer such an account? My brokerage does, but only for stocks.

Or am I going about this all wrong? Any help is appreciated.

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Re: UTMA RE accounts? - Posted by Rick Vesole

Posted by Rick Vesole on February 23, 2001 at 23:47:27:

In my state, you just take title to the real estate in your name as Custodian for Little Johnny Doe under the ______ Uniform Transfers to Minors Act.

Fill the blank in with the name of your state. Before doing so, make sure that taking title this way is allowed under your state’s law.

You don’t need any special kind of account other than a normal checking account for the income and expenses of the property.