Hi: I want to invest my children's UGMA money in a piece of realestate. The verbiage I read clearly states the acceptability of financial vehicles, and also "property." I'm fairly certain that realestate is permissible, but I'm unable to find any language to prove this. Does anyone know anything about it?
Thanks, J

Joastis1:

Buying individual real estate with UGMA money may be okay, but there are real practical obstacles. It has to be structured correctly.

Most states require that UGMA/UTMA money be held in some form of trust (usually a bank or mutual fund). If you buy the real property, you would probably violate that requirement unless you use a private trust to buy the property. The fees for such an arrangement could be prohibitive.

How about using a Real Estate Investment Trust (REIT)? That's bascially a mutual fund that invests in commercial real estate. They usually pay a generous dividend (which should be reinvested) and are usually pretty stable in terms of long-term growth.

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Originally Posted by joatis1

Hi: I want to invest my children's UGMA money in a piece of realestate. The verbiage I read clearly states the acceptability of financial vehicles, and also "property." I'm fairly certain that realestate is permissable, but I'm unable to find any language to prove this. Does anyone know anything about it?
Thanks, J

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I have the same question except with an UTMA account, can the entire funds be used to invest in real estate for the minor?

Thanks in advance!