I have never heard of these. Has anyone else out there heard of these and if so, please let me know how to treat dividends, interest, capital gain from a tax standpoint.
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Not enough info for anyone to comment on. It all depends on what the trust documents say. Who is the one funding the trust? Is it an irrevocable or revocable trust? Is it sponsored by a state or a private institution? Who gets the income from the trust? Is it required to distribute income currently or only for education purposes? -
Education Accounts
You may be dealing with a Coverdell ESA, a Section 529 state-sponsored plan, or possibly even an ordinary custodial account, sometimes referred to as a UTMA or UGMA account.
Technically, all of these types of accounts are trusts.
The Coverdell account structure was designed like an IRA. It's not a retirement plan, but it has a very similar structure to it. Financial institutions often title the account "Last National Bank, Trustee for the Coverdell Education Savings Account of Jane Doe."
Technically, even a regular IRA is a type of trust.
BurtonBurton M. Koss
koss@usakoss.net
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