marillion9
Junior Member
What is the name of your state (only U.S. law)? Wisconsin
My children's great grandma passed away and they were named as beneficiaries under an irrevocable trust. Checks were cut under UTMA for each child with their uncle as the custodian. I would like to put this money into a 529 plan for college for each child.
Questions**************if this money is used to open a new 529 plan, will there be any income or inheritance or kiddie tax consequences? If so, who reports and pays the taxes? (me as parent, uncle as custodian of the accounts, or the trust itself?)
Also, if taxes must be payed, is there a way to take out taxes now instead of having to pay them later?
Thanks for any help on this confusing issue.
DR
My children's great grandma passed away and they were named as beneficiaries under an irrevocable trust. Checks were cut under UTMA for each child with their uncle as the custodian. I would like to put this money into a 529 plan for college for each child.
Questions**************if this money is used to open a new 529 plan, will there be any income or inheritance or kiddie tax consequences? If so, who reports and pays the taxes? (me as parent, uncle as custodian of the accounts, or the trust itself?)
Also, if taxes must be payed, is there a way to take out taxes now instead of having to pay them later?
Thanks for any help on this confusing issue.
DR