minor child as beneficiary of ibond
If I purchase 2 separate I bonds under my account for my two minor grandchildren and list them as beneficiaries, am I then able to gift those iBonds To my adult daughter (their mother) Leaving them as the beneficiaries, but under her account?
Terry Says
No, that would be a separate transaction. You should probably open a TreasuryDirect account in the name of your daughter, and have the bonds put in HER gift box. Tell her about the penalties for cashing them in early. And warn her to leave them in her gift box because they won’t have as much impact on potential financial aid.
So you could put them in the gift box in your own account and not distribute them. You need their SS numbers. But minors can’t own financial assets. So a custodial account would have to be set up if you pass on before they are adults (age 18 in most stats) and that would impact financial aid greatly. Plus, once the money is theirs, you have no idea how it will be spent.