What to do with her money....?

My daughter lost her father to a car accident a few years ago and she has approximately $30,000 in an account for her when she turns 18. Until now, she has had a conservator that decides where the money goes, but I am now going to become her conservator. I know nothing about accounts, savings bonds, and cd's and such. What would be the best thing to do with her money? It has to be in an FDIC account. I plan on going to my bank and talking with them, but I just wanted to know a little something before speaking with a financial advisor. Thanks!

This site has information on bank accounts and CD rates at different banks.

Why must it be FDIC insured? All you can do is put in in a CD or savings account if it must be FDIC insured. Your daughter will lose her money slowly due to taxes and inflation.

One thing a bit odd, how old is your daughter? She had a conservator and now you will be the conservator. Typically a conservator is a person appointed by the Probate Court to oversee the financial and/or personal affairs of an adult person who is determined by the Probate Court to be incapable of managing his or her affairs or unable to care for himself or herself. In the legal financial world precise language is important. So why exactly are you a conservator, or do you mean trustee or guardian? has the court appointed you to this role or is it self annointed?

If Guardian/trustee, this should expire at the age of majority for guardianship in your state. This is not necessarily the same thing as the typical age of majority which is 18.

For the custodial age of majority you must turn the funds over to the child when they reach 21 (or an earlier age, in some states),other states such as California allow you to specifiy a different age up to 25. But you must make the specification. Certain states have rules about how the money was obtainbed, whether by gift or inheritance, which affects the age at which the money must be turned over.

If you do not relinquish the funds at that age, you are converting (stealing) the money from your daughter, despite your best intentions. I am not accusing. Some people are mature and thoughtful at age 21 or earlier; many are not. Do you really want all that money in your child's hands at that age?
Alternatives: Before establishing a custodial account, you should carefully consider your objectives and other ways you may achieve them. You may find that you're better off putting money into a Coverdell account, a 529 plan, or even a traditional IRA or a Roth IRA, instead of a custodial account. Another possibility is to set up a trust. There's some cost involved in establishing a trust, but often it's less than you expect. This really depends on the facts of this issue, who controls it currently, how it is registered, and what your goals are.

Beware, most financial advisors are salespeople. They won't know this information. Have a detailed conversation with the current conservator to discuss your options Good luck

MY daughter was hit by a car and her money is in the form of an annuity ( a much larger sum than what you are talking about). If she has an annuity, you can't do anything with it until she is of age and they begin to make the payouts to HER. Why is it that you are going to become her conservator? Talk to an attorney to find out wht you can and cannot do with this.

It has to be in an FDIC account due to terms of some legal document ? If so then use the link above my post to find a good interest rate

Or you want it to be in an FDIC account cause you think thats what you want ? If this is the case then I'd suggest putting the money into Vanguards S&P 500 mutual fund. Yes money in the stock market is risky, but putting it into a CD won't cover the cost of inflation.

Take a 1000$ CD for 12 months at 4% ... you'll end up with ~1040$ a year later, but how much more does 1000$ of gas or eggs or milk cost a year later ?

The first question you have to answer (and let her have a say) is what is the money going for? Is it going for college? Retirement? Or just randomn spending money?

If it is going to college or retirement, there are tax-free accounts to use (aim for the highest interest rate), or the most aggressive growth plan (on retirement account).

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Invest in real estates, you will get good returns but be careful in acquiring the required title deeds and link documents before any commitment. And take a legal advise on showing the doccuments before any financial commitment.

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