Thursday, February 15, 2007

UTMA Opened - Allowance Funded

Yesterday, I opened the UTMA (Uniform Transfer to Minors Act) account for our daughter with TD Ameritrade. I also funded it with $10,000 to qualify for a free IPod Nano.

As I posted earlier, this UTMA is a tax advantaged way that I am using fund her allowances until she is 18. In addition, my spouse will get a free IPod Nano she can use.

For one day, I am a personal finance hero:-) My daughter gets $10,000 and guaranteed allowances until she is 18. My wife gets an additional Valentine's Day gift of a IPod Nano. I get a tax break and a free promotion for what I needed to do anyway. It doesn't get any better than that.

For more on Crossing Generations, check back every Thursday for a new segment.

This is not financial advice. Please consult a professional advisor.

Copyright © 2007 Achievement Catalyst, LLC


Golbguru said...

Super: congrats ! that sounds like a very good day. I have zero knowledge about UTMA; thanks for mentioning it , I will now look it up and start reading about it.

Btw, I am impressed you are sticking to your schedule of a topic-a-day each week.

Super Saver said...


Thanks for your comment.

A UTMA is useful primarily after you have children. Or if you are distributing your wealth to nieces, nephews, or grandchildren. For example, my father-in-law opened a UTMA to help fund our daughter's college expenses.