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grandchildren with their education, she could set up a 529 plan for each child and contribute $50,000 to each account . 529 plans are tax-deferred accounts that are used for education. If the kids are young, the account could grow tax-free for years before it’s needed. If this is a concern, a 529 plan account is a better option, but grandma—not a parent—must be the custodian Once payments were made out of the account, this would be considered income to the child and could put

Automatic investments are made from a payroll deduction plan or linked bank account, making it easy to Uniform Trust for Minors Account (UTMA) Want to gift your college student tuition money? A uniform trust for minors account, or UTMA, may be a good option. The first $2,000 of investment income from these types of accounts get special tax treatment. Once a minor reaches 18, assets in UTMA accounts become accessible to them immediately.

Many folks have the same issue with scattered finances: IRA here, 401(k) there, trust account, savings account, bank CD, insurance policy—plus a spouse’s accounts. Is there any cohesive strategy behind these accounts? Generally, the answer is “no.” Contributing to your 401(k)/IRA accounts and recognizing various deductions (e.g., charitable contributions

Your email account, social media profiles, loyalty program benefits, and online accounts for utilities Consider every account, username, and login you might want your loved ones to have access to. Then create a list with the information, making sure to include the password to each account. It is also a good idea to include the security questions associated with a given account and, of course This person will have access to all your accounts and be in charge of distributing or destroying assets

Maintain a joint checking account for regular expenses, but think about having separate stock and investment accounts. Each spouse should sign a financial durable power of attorney to allow access to retirement accounts or other accounts that are held only in one spouse’s name. In addition, you should sign a HIPAA (Health Insurance Portability and Accountability Act) release in

529 Accounts. These are a very popular college savings vehicle. It is essential to understand the impact of account ownership and the timing of distributions on financial If grandparents contribute to a 529 account in a parent’s or grandchild’s name, the 529 account counts As a result, those monies may reduce the amount of aid for which the student is eligible. This could decrease the amount of their award.

Make a List of Accounts and Documents. This should include all of your financial accounts, insurance policies, and contact information for any professionals you work with—like attorneys, accountants, brokers, and financial planners. Organize Your Social Media Accounts and Digital Assets. The answer for what to do with your social media accounts and digital assets isn’t black and white.

You need to take taxes into account. With taxable accounts, tax-deferred accounts, and tax-free accounts, you’ll have some flexibility in If you don’t need the money to live on, reinvest the money in a taxable account. If you are still working later in life (even part-time), you can save in tax-advantaged retirement accounts

retirement, estate planning is now considered essential for anyone old enough to have their own bank account As soon as you turn 18, your parents have no legal access to your medical or financial accounts like If you own cryptocurrency, run a popular social media account, or just want your carefully curated Instagram your own mortality or demise, considering how – or whether – your loved ones will gain access to your accounts

While the most common things like bank accounts , retirement beneficiaries, life insurance beneficiaries Beneficiary designations on financial accounts rule over what you state in your Will. This means that if you change the beneficiary for a bank account on your Will from your ex-spouse to It is always best to review your beneficiary designations on any financial account you own (checking, savings, retirement, investment accounts, etc.), especially when you encounter a drastic change in your

advantage of your current ability to deduct charitable contributions by funding a donor advised fund (DAF) account Your contribution is held in an account from which you can make charitable contributions by “advising You get a charitable deduction, and the money can be taken out of the account for charitable causes in Annual-exclusion gifts can be used for 529 plans, uniform gift to minors act (UGMA) accounts, or even If you have a few children and grandchildren, it’s a great way to give substantial amounts away every

For example, many accounts and policies have a “payable on death” option wherein you simply name a beneficiary For example, if you have named a beneficiary who passes away before you do, the holder of the account The very same accounts and assets can be left to one or more trusts, for example, with you naming the