I’m want to take advantage of the gift tax exclusion in USA and give my kids some BTC. I want it to be registered in their name so that there’s no question about who is the owner. Many traditional financial institutions offer custodial/guardian accounts that parents can open for their children to invest in stocks for example at an early age. Haven’t found any crypto exchange doing that yet, maybe only for high net worth individuals. Any help is appreciated!
In my opinion, a cold wallet is the best option. You just need to keep the keys safe until your child is ready to take it over.
I know you mentioned you wanted it in an exchange but with all of the issues happening with centralized exchanges lately, I suggest moving every crypto you own to a cold wallet for storage anyways. Cold storage can be very scary, when I first left centralized exchanges and stored my crypto in cold wallets I was always so paranoid that I would screw something up. I just really recommend you do your due diligence when managing cold wallets and never store any key information online.
As for recording who is the true owner of the crypto, when it’s in a cold wallet the government doesn’t know who it belongs to really. So you may need to self report in your taxes that you own this amount in bitcoin and your son owns this amount but for this I suggest you actually speak to a real financial expert/tax expert since every government, country, and city is different when it comes to this
Thanks @Johnknee for your response. I agree that cold storage is probably the best option over all. The funds will most likely remain stashed for a good amount of years and I don’t want them to get lost in case my heart stops beating I plan on this not happening for a good amount of years either but you never know. It’s obviously my responsibility to educate them about the subject beforehand but they are still a bit to young.
This absolutely should be doable with a smart contract as well, where it pays into their wallet when you stop checking in.
I don’t know the deets on how to do this, but it is one of the more exciting use cases, imo.