Ask HN: Best way to give stocks to my 2y/o niece?

#1

Post by joaoram » Wed, Dec 01, 2021, 10:55 AM UTC

I have been thinking about giving my 2 year old niece stocks for a while now, so that she can (hopefully) get some returns until she turns 18. Have you ever done something like this? What was the process? It would be in the USA, but any experience from anywhere can help a lot. Thank you!

Re: Ask HN: Best way to give stocks to my 2y/o niece?

#2

Post by 5bolts » Wed, Dec 01, 2021, 8:21 PM UTC

I'd get a 3rd party - one of the big financial planning companies / stock companies and put it there.. have them manage it with your stipulations.. no one can take $$ out unless she's 18, or dead.. anyone can contribute.

don't want something to go sour with parents (relationship or just hardships) and that gets used to bail them out. or lack of access used as punishment if she ends up being less than what the parents expected.

Trust fund keeps coming to mind but i don't think those are typically stock based? Can you sign up for an IRA that young and just let some big hedge fund manager pick / manage the portfolio.. Or are you wanting to give say 1 share apple, 1 share facebook and whatever happens happens?

Re: Ask HN: Best way to give stocks to my 2y/o niece?

#3

Post by joaoram » Sat, Dec 04, 2021, 1:46 PM UTC

5bolts wrote: post #2

I'd get a 3rd party - one of the big financial planning companies / stock companies and put it there.. have them manage it with your stipulations.. no one can take $$ out unless she's 18, or dead.. anyone can contribute. don't want something to go sour with parents (relationship or just hardships) and that gets used to bail them out. or lack of access used as punishment if she ends up being less than what the parents…

Thanks for sharing your thoughts, I think I am going with a big financial planning company/big bank.

Yeah I think it is kind of a shame how bureaucratic it is to do that. Especially because I need my sister's approval, so that she can help opening a custodial account for my niece. If I didn't trust my sister I would be afraid of sending money to that account haha

Anyway, I will try my best and if anything I will just buy some interesting Crypto and give her a wallet, that's much easier. Thanks!