Started Brokerage accounts for all my kids. Plan on putting the gift limit of 38k/yr for each kid. Just got them 72K worth of NVDA/TSLA/PLTR for each. I am hoping when they are ready to buy a house in 10-15 yrs, they will have $1M in the bank to get them a good start.
Should be their tax rate since they own the money. They might even use it for something else other than what he wants at age 18.
Why not just take the money, start a real estate LLC and buy the houses for them under a real estate trust?
Its graduated. Something like up to $2600 at childs and above at parents while custodial. When they turn 21 (most states), they assume control then I drop off so I assume it will be at their rate. I do not plan on doing my buy/sell and long term cap of 20% is not a huge amount.
I am doing this more to lower my estate amount so giving them $38K each a year as gift. Even under a real estate trust, gains are taxed I believe. But I am doing this also to give them flexibility and a head start on life so they can do whatever they want including buying a house, car, start a business, keep it invested.
Valid points. I have thought about the same thing for my children. I worry about them getting divorced being an issue. I would look into a trust.
I concur and very eye opening creating a trust.
Buy land down there, hire locals to work for pennies, farm/mine or start textile mill/manufacturing.
