@Opus 17 wrote:
With a brokerage account, the child is guaranteed to pay income tax when they withdraw the money,
No, the child would have "income" when the stocks/funds/bonds are sold. "Income" and "pay income tax" are two different things. And "sold" and "withdraw money" are also two very different things.
In upcoming years, the parent can be selling/trading in the brokerage account and realize up to $1100 of gains per year, tax free ($350 after the child gets a job).
