Reply #7: Agree elehhh [View All]

[Yupster]

In Texas it's 21 when the kid gets the money no questions asked, but I agree you should be very careful what money you put in an UTMA account. For many young people, giving them $ 40,000 on their 21st birthday might be no favor to tem at all.

This seems to be the type of account the story is talking about, and UTMA acounts are absolutely NOT college savings plans.

The 529 wouldn't apply to this law as investment income is ot taxed year to year in a 529.

BTW, the 529, college savings account is only apt until 2010 I believe. It's a tax cut that does need to be made permanent in my opinion.

Whenever someone says rollback all of Bush's taxcuts, I always try to add, "come on, you don't mean the 529 too. Do you?"