Why, in Australia, can shares not be held in the name of children?
Is it because these particular grandchildren are too young to legally own shares or have status as partvof a contract?
Interesting question, I hope someone out there has an answer rather than a guess.
In Australia, minors can’t personally buy and sell shares. However if you wish to avoid a formal trust, create an account in the name of an adult with the shares held in trust for the child.
Make sure when completing the paperwork, you place the minor’s name in the spot that’s designated for the account. Although by law you are the legal owner of those shares, the minor is the beneficiary. When the minor reaches legal age, they can then take over the portfolio.
Get further advice from your stockbroker.
I agree Sophie and I'd like to add that as legal owner of assets in a minor's name, the owner has to treat them as an asset and any income produced is taxable in the owner's name.
Yes Horace, I do agree with you on that point also.
My recollection is that parents can buy shares in trust for their children but the proceeds on sale belong TO THE PARENT. As tax is being avoided by this sort of structure that's likely why it is not legit.
If you set up a proper trust (costly) you may get away with it. Ring the ATO.
The ATO has a web page all about this -- see https://www.ato.gov.au/Individuals/Investing/In-detail/Children-and-under-18s/Children-s-share-investments/
Thanks for your reply, Folks!!
40 YEARS AGO CHILDREN COULD ONLY EARN $400 before penalty tax, now 40 years later the total amount has not changed, GEE IT MUST BE WONDERFUL THAT WE HAVE HAD NO INFLATION INYEARS
This is a very interesting question. You know in my country it is possible to share be held in the name of children. I understand how it is stressful for you.
I will recommend you to take it easy and try some entertainment. For example raging bull casino aus can help relax and win some money.