1/31/2024 0 Comments Gerber life insurance for adults![]() ![]() The federal income tax breaks for UGMA accounts are not as extensive as the tax incentives for 529 plans. Gerber Life emphasizes in a discussion of the tax rules governing UGMA accounts that it can’t give tax advice and that parents interested in UGMA tax provisions should talk to their tax advisors. Uniform Gifts to Minors Act accounts: UGMA accounts are organized under state laws that differ from jurisdiction to jurisdiction. Now, there’s a new push to help families save for other kinds of foreseeable costs. What it means: Conscientious clients are using special kinds of accounts to save for retirement, health care and children’s college costs. When they become adults, funds from a UGMA account could help them buy their first home or pay for their wedding.” “Whether it’s their first car, travel, band equipment, astronaut camp, after-school programs, or future educational costs, 100% of the funds deposited can be used towards the betterment of the child. UGMA funds “can be used for any expense directly benefiting the minor,” Erlebacher said in a recent email interview. Erlebacher, the CEO of Fabric by Gerber Life, has another idea: Encourage parents to put at least some cash into investment accounts based on the even more flexible Uniform Gifts to Minors Act framework. Life and annuity professionals may talk about the benefits of using cash-value life insurance as a somewhat more flexible long-term savings vehicle. Today, advisors and planners tend to focus on offering 529 plan accounts and other college savings accounts, which can be used for educational expenses or, eventually, flow into Roth IRAs. ![]() Adam Erlebacher would like to see financial professionals take a more flexible approach to financial planning for children. Once parents are on a website setting up UGMA accounts, they could do other things. They can use a Uniform Gifts to Minors Act account to pay for anything that will benefit a minor. Parents can use 529 plans to save for education expenses and, possibly, retirement expenses. Help Kids Save for All Possible Futures: Fabric CEO ![]()
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