bmcper 
CEO/Auditor
Posts: 263
(10/22/03 5:37 am)
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UGMA Accounts
Save for College with UGMA Accounts
Want a convenient way to save for your children's education? Consider a Uniform Gift to Minors Act (UGMA) account.
UGMA accounts are a type of savings account that provides some unique benefits and protections. The primary advantage is that any earnings on the account are taxable to your child (at his or her tax rate if the child is at least 14 years old), rather than to you. Also, as the parent, you maintain control over the account until your child becomes an adult (usually age 18 to 21, depending on your state's "age of majority" laws).
Your bank or investment advisor can help you establish this account. Note that some states limit the investments you can hold in these accounts to life insurance, CDs or cash, although the benefits are universal.
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