Announcement

Collapse
No announcement yet.

Child's Earned Income

Collapse
X
Collapse
 
  • Page of 1
  • Filter
  • Time
  • Show
Clear All
new posts
Previous template Next
    #1

    Child's Earned Income

    This is for my personal reference. Is anyone out here knowledgeable in the world of children earning income and protecting it till they are adults? My granddaughter 6 months old is presently represented by a Talent Agency and doing print ads. She could make some significant money over the years. My son is not married to the mom of my granddaughter so who knows what will happen over the years with this relationship.
    I want to make sure we set up her income the correct way from the start of this in order to avoid all the ugly that can happen down the line.
    Any suggestions or references where I can get more knowledge?
    As always the feedback from all of you is appreciated.
    Noel
    Noel
    "Some cause happiness wherever they go; others, whenever they go."- Oscar Wilde
    Tags: None
    #2
    Lawyer

    I would suggest a lawyer in the state in which your granddaughter resides who is well versed in custodial income issues. Someone can probably suggest the appropriate legal jargon to use.

    Comment

      #3
      Maxing out contributions to a retirement plan would be a good first step.
      In other words, a democratic government is the only one in which those who vote for a tax can escape the obligation to pay it.
      Alexis de Tocqueville

      Comment

        #4
        Agree with this

        Originally posted by Lion View Post
        I would suggest a lawyer in the state in which your granddaughter resides who is well versed in custodial income issues. Someone can probably suggest the appropriate legal jargon to use.
        I will also suggest that you be certain that the child has separate bank account(s), and never make (or allow to be made) any deposit to it/them other than child's income. (I am thinking about separate marital property, but I bet it'll work for you here.) Never. Trust me, trust me, trust me.

        Also, designate appropriate PODs / beneficiaries for all accounts.
        If you loan someone $20 and never see them again, it was probably worth it.

        Comment

          #5
          I will search it futher, but I believe it is a law that a child under 18 is required to establish an account to protect the childs income. It has something to do with 'Child Stars" by keeping the money away from parents and other money grabbers.

          Here is a link to Coogan's Law (Jackie Coogan) http://en.wikipedia.org/wiki/Coogan_Law

          It appears the only CA and NY have this law for child actors. I guess, depending on the amount of income earned, a trust account should be set up with a lawyer.
          Last edited by BOB W; 01-20-2010, 03:18 PM.
          This post is for discussion purposes only and should be verified with other sources before actual use.

          Many times I post additional info on the post, Click on "message board" for updated content.

          Comment

          Previous template Next

          Disclaimer

          Collapse

          This message board allows participants to freely exchange ideas and opinions on areas concerning taxes. The comments posted are the opinions of participants and not that of Tax Materials, Inc. We make no claim as to the accuracy of the information and will not be held liable for any damages caused by using such information. Tax Materials, Inc. reserves the right to delete or modify inappropriate postings.

          Working...
          X