We currently have 5k in a HYSA for each child (2), I was reading that each child can have a UTMA brokerage account. Hypothetically if we just bought bonds and the total taxable gains were < $1350 each year, my understanding is they wouldn't need to pay income tax and wouldn't need to file a return if their income is below the threshold of 1350.
We would do a 529 separately for education costs.
Thoughts on this approach? Is what I've mentioned how it would work? Would love input, thank you!