Investing for Grandkid

[LivingAlmostLarge]

Depending on the account and investment you may have to file taxes every year.

[mumof2]

I guess. But I wasn’t thinking of inheritance.

in that case though, what about the year after the money is inherited and the account generates dividends/interest/capital gains - Then that will trigger taxable events ?

Point was if the account belongs to the child (not inheritance); they start working; file their own taxes; they will need to know about this account to do their taxes (USA) or their tax forms will be incorrect.

you can only keep it hidden for so long. My kids do not know about their investments but they are under 10 years old. The oldest knows they own Apple and other companies but not the total amounts. I only have to file state taxes for them currently as they are not required to file federal since their unearned income doesn’t meet the requirements to file (USA).

Yes but gifting money to your kids or grandkids or any inheritence are both non taxable...same with lotto winnings....but you wouldnt pay taxes on it no matter what the amount it....if they leave it in the bank once gifted then yes you will probably start paying some tax on it as it can be classed as income....we also only pay federal taxes we don't have state taxes....it is much easier here