Beware of the “kiddie” tax age limit for 2007, up from 14 to 18. Also, in 2008, some children about to sell investments for college will be taxed at their parents rate so planning in 2008 can save taxes.

While tax returns in the 10% or 15% brackets get a break on long-term capital gains, paying 0% in 2008 (the rate was 5% before), children will not receive much benefit because of the rules described above.