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    #1

    Custodian account question.

    hello folks...

    one quick question... my FIL wants to gift ~$5k to my son (5 yrs old) and he has an etrade account and I'm custodian on that account. The account was opened 4 years back in good old days and has $59 balance. We didn't list this account anywhere in the forms while filing ch 13.

    Any issues with deposting the gift money in the custodian account? I dont think I have inform anyone... attorney or USt. right?

    thanks in advance.
    12/31/08: Filed for ch 13. (FICO: 605 as of 1/5/09, 648 as of July 2010). 02/11/09: 341 mtg. Plan confirmed for $200 per month for 36 months... (20 down 16 left)
    Tags: chapter 13
    #2
    A custodial account is considered an asset to you as you have access to and can withdraw those funds for your own purpose even though you are holding them in custodial care for "the benefit of" your son while he is a minor. I would not deposit anything or withdraw anything from that account during your Chapter 13 as your SS number is tied to that account for IRS purposes. Tell your FIL to open up an E-Trade or other account in his own name for your son and that will eliminate any worry on your part.
    _________________________________________
    Filed 5 Year Chapter 13: April 2002
    Early Buy-Out: April 2006
    Discharge: August 2006
    "A credit card is a snake in your pocket"

    Comment

      #3
      thx Flamingo - but my FIL is not a US citizen, but my son is.
      BTW, I'm not planning to withdraw or trade in that account... just a long term investment for his college education.
      12/31/08: Filed for ch 13. (FICO: 605 as of 1/5/09, 648 as of July 2010). 02/11/09: 341 mtg. Plan confirmed for $200 per month for 36 months... (20 down 16 left)

      Comment

        #4
        Are 529 plans considered custodial? Could they create one of those for your son? Or if there are citizenship issues with setting it up, could you create it and they contribute?
        1/15/10 Filed ch7 2/18/10 314 meeting
        2/22/10 Report of No Distribution
        4/20/10 Discharged 5/20/10 Closed!

        Comment

          #5
          Originally posted by screwedupbyRE View Post
          thx Flamingo - but my FIL is not a US citizen, but my son is.
          BTW, I'm not planning to withdraw or trade in that account... just a long term investment for his college education.
          It doesn't matter your intention that you do not plan to withdraw or trade those funds, it's that there are available for your use which makes them an asset for you. Those funds would be tied to your SS# and are easily traced. You need to discuss this matter with your attorney because you are not talking about a $25 gift, you are talking thousands and also that you did not report that you had this account in the first place. First rule of thumb in any BK; don't hide anything. It will almost always come back and bite you hard.
          _________________________________________
          Filed 5 Year Chapter 13: April 2002
          Early Buy-Out: April 2006
          Discharge: August 2006
          "A credit card is a snake in your pocket"

          Comment

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