Author Topic: How to Convert a Coverdell ESA to a UTMA account...  (Read 1663 times)

Ed Mills

  • Stubble
  • **
  • Posts: 113
  • Location: Merida, Mexico, Chattanooga, TN & Swampwater, GA
  • Join the FI Revolution Y'all!
    • The Millionaire Educator
How to Convert a Coverdell ESA to a UTMA account...
« on: October 12, 2014, 06:24:19 AM »
I'm looking for some off-beat ideas on how I could convert my son's Coverdell educational savings account to his UTMA account.  I have decided that we have too much money saved for his college education, and I'd rather shift that money to his UTMA mutual fund account.  I was thinking that I could make two of my nephews the beneficiaries on $5,000 of the account and have them repay me over the course of 2 to 3 years at a rate of 0%.  I know all the pitfalls for doing financials deals with relatives, but this would enable me to gradually move $10k from the ESA to the UTMA.  What do you guys think?  Please share other ideas with me if you have any.

Thanks,
Ed