You can, in fact, ratchet up a small amount in their accounts, tax-free each year. But that's easier to do when you have power over their accounts, rather than coaching them through it.
Beware though, I did this and made a mistake or got caught off guard in some way and went over the kiddie tax thresholds on two of my kids, which made tax-filing significantly more burdensome. For our 3rd kid (last dependent), we are in the process of/completing switching over her formerly UTMA account to being fully in her name, and I don't think I will push her to try to "gains harvest" because of the complexity and possible error in it, relative to the small-ish win.
Beware though, I did this and made a mistake or got caught off guard in some way and went over the kiddie tax thresholds on two of my kids, which made tax-filing significantly more burdensome. For our 3rd kid (last dependent), we are in the process of/completing switching over her formerly UTMA account to being fully in her name, and I don't think I will push her to try to "gains harvest" because of the complexity and possible error in it, relative to the small-ish win.
Statistics: Posted by psteinx — Wed Aug 07, 2024 2:52 pm — Replies 5 — Views 222