Long-term investment vehicle for taxable trust for minor

CheetahDad
Contributor

Any suggestions about funds for a trust I adminster for a young child? It's not hard to figure out an allocation for an investment payable in 20 years (aggressive). The issue is that realized capital gains and dividends are taxable to the trust at a high rate, not to speak of the cost and hassle of preparing returns.  If I distribute earnings, the tax rate is lower, and I can go ahead and redeposit after-tax earnings. From what I've read, the ideal investment would have zero dividends or realized capital gains, like holding a piece of real property. I've been trying to figure out if I could manuever things via an IRA or Roth, but you can't put one of those in trust and if I just open one and make the child the beneficiary, the child gets the money too early (at 18). I've asked a bunch of people about this and done some online research but can't find a good solution.

2 REPLIES

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@CheetahDad, thank you for reaching out. This is an excellent question and I will be forwarding this for a subject matter expert to review. They will contact you as soon as possible. Thank you. ~ Robyn.

Would a real estate investing vehicle, such as Fundrise, be a solution to your circumstances?