I'm a first time uncle and wanted to start an account for my newborn nephew. I think I want to do a UGMA/UTMA but I don't know much about either of them. From some reading here it looks like the parents are responsible for paying taxes on the account, or would that be me since I'm the custodian of the account?
I plan on investing entirely in VT and want to start with 3k and then do an additional 1k for every birthday till he turns 18. I understand that VT is pretty tax efficient so there shouldn't be too much due in tax annually but can y'all give me an estimate on how this might cause his parents tax burden to increase?
PS - I'm not interested in doing a 529
I plan on investing entirely in VT and want to start with 3k and then do an additional 1k for every birthday till he turns 18. I understand that VT is pretty tax efficient so there shouldn't be too much due in tax annually but can y'all give me an estimate on how this might cause his parents tax burden to increase?
PS - I'm not interested in doing a 529
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