Stock gifts to minors?

[ripvanwinkle]

Not sure if this is the right board to post to. I was wondering how this would work in this scenario? Suppose as a grandpa I open a account for my granddaughter. I put some money in every few months and buy stocks, etf's, funds etc.
If I get sued or become ill and they look at my assets, would they also look at this account as as an asset? How do I protect my granddaughters account?

[justme]

Well, there's gift to minors accounts - but that turns all control over to them as soon as they're 18. I think 529s might be protected like retirement accounts are, but I'm not sure. Otherwise I think the only way to open an account for her and not have it be yours is to create some kind of trust - but I know zero about that so it might not protect the money for all I know. As far as I know, anything other than that would be in your name legally, except for a life insurance policy.

[Bluerobin]

I once started giving my nephews a savings bond each year for Christmas.  Unfortunately, their spendthrift father cashed them in to go on vacation.  So, I set up a Uniform Gift to Minors account with my broker with me as the trustee.  I didn't let the kids know they could cash it in at 18.  After they hit their twenties, I told them. 

[kadee79]

Thanks for the info WXYZ! I've been considering some kind of acct. for each of my grands...one this year and one next yr. I may just combine them and make them both beneficiaries rather than 2 separate accounts.

[Ombud]

@wxyz , that's why I have 4 accounts at Schwab:
50/50 my kids:

1. Brokerage
2. IRA
3. Roth

4. Grandkids - 14% to each, 2% to son as he'll have to deal with selling house in trust & getting 1/2 to DD

As my kids become more solvent, I switch more from #1 to #4.