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Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: Ed Mills on October 12, 2014, 06:24:19 AM

Title: How to Convert a Coverdell ESA to a UTMA account...
Post by: Ed Mills 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