Leaderboard

Yardley, it IS taxable and is the child's, subject to the kiddie tax. I had this exact scenario years ago at the firm I worked for. Four minor children each received a huge settlement from a small plane mfr after it was found negligent in the deaths of both parents. The god parents had taken them in and adopted them as their own before ever knowing if any settlement would occur.

Whoa! when I Googled "surrogate" all I got were links to surrogate mothers. It must be a hot topic. If it is the mother's natural child, it would be a Custodial acct. (Thanks, Judy). If the mother was appointed guardian of a someone elses child, and the mother was legally appointed guardian, it would usually be a guardian account. However, it seems that in some states, they use "Surrogate" for both custodial and guardian accounts. Maybe PA is one of them. It may be that the child is adopted and the account was opened between the time the mother was appointed guardian and before any adoption was finalized. Yardley, I would simply tell the mother that it does not matter what the account is called, it is the SSN on the account is all that matters and any interest over $0.50 has to be reported.

According to this news article, one year later, no sanctions or enforcements of any kind have been taken against Equifax. Business as usual - more sheep to be fleeced ! https://apnews.com/3e135a3f5b1941a48a9cb9692950d11e/A-year-after-Equifax-breach,-no-enforcement-actions