Estate Tax Savings With UTMAs, With Alvin Carlos

Custodial accounts can be a great way to get around estate taxes, especially in states with limits significantly below the federal threshold. UTMAs can offer some marginal short-term tax savings, but lack many of the advantages of 529s when it comes to saving for college.

Alvin Carlos of District Capital Management joins Michael to discuss the benefits and drawbacks of opening a custodial account for your child.

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Episode Highlights

  • Overview of custodial accounts and a comparison the UTMA and UGMA structures.
  • Discussion of the tax benefits associated with UTMAs.
  • How UTMAs and UGMAs can be used to avoid estate taxes.
  • Common mistakes made with custodial accounts, and how to avoid them.
  • Additional benefits of UTMAs, including the ability to teach financial literacy to children.

Episode Resources

Today’s Guest: Alvin Carlos, District Capital Management

About The Uncommon Advisor Podcast

The Uncommon Advisor podcast features insights from advisors who are embracing a modern and holistic approach to wealth management. Learn how the most creative minds in the industry are innovating their practices to deliver superior client results, generate new business, and maximize retention.

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Michael Johnston, CFA
Michael Johnston, CFA

Michael Johnston, CFA is the co-founder and President at WealthChannel, and host of WealthChannel Academy.

Michael previously founded ETF Database, the leading independent authority on exchange-traded fund investing.

Michael's professional experience includes positions in corporate finance and investment banking, as well as entrepreneurial experience as a co-founder and early employee in multiple high growth, venture-backed companies.

Michael graduated from the University of Notre Dame with a degree in Finance. He lives in Oregon with his wife and son.