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 Tax Efficient Investor Podcast

On the Tax Efficient Investor podcast, we show you how to protect, grow, and transfer your wealth by implementing tax-advantaged investment strategies. Host Michael Johnston demystifies tax strategies that are favored by the most successful and sophisticated investors, including 1031 exchanges, IRA & 401k plans, HSA accounts, trusts, real estate, and more.

Michael Johnston
Michael Johnston

Michael is the President at WealthChannel and the host of the Tax Efficient Investor podcast.