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
