I've read posts about this subject quite a while back (about buying shares for the kids). I just tried to finds those topics but have had no luck.
Anyway, I just wanted to know how others have done this. Did you just buy the shares as if it was for yourself or did you buy it with your kid's name (how do you do this?)?
This will be a buy and hold - for many years, my daughter is 3yo and it is for her 25th present.
Knobby22
17th-March-2009, 12:55 PM
I wouldn't buy shares for little children.
Wait till she is 14 and buy some shares then with her involved. Then she will learn.
Also there are many tax implications.
bonkerrs
17th-March-2009, 10:49 PM
Also there are many tax implications.
Tax implications - for my daughter when she goes to sell the shares?
Julia
17th-March-2009, 10:58 PM
You need to seek advice on this:
A shareholder relationship with any company is essentially contractual in nature. Minors (children under 18) cannot be bound contractually. Shareholders may therefore consider it is more appropriate that the shares are held by an adult on behalf of the child. For example, the holding can be designated 'Mr John M Smith ((Miss Elizabeth Smith Account)'. There are other factors to be considered when investing on behalf of a child and we recommend you seek further advice from your accountant or financial adviser.
beamstas
17th-March-2009, 11:04 PM
It is my understanding children cannot be bound by a contract, i believe this is why they cannot buy shares
My advice: Look into setting up a trust
wonderrman
18th-March-2009, 07:31 AM
Yes you won't able to set up the account in her name exactly. You can set up a minors account were you hold the account on behalf of your daughter. Your obviously buying for the long term (20+ yrs), so you would think that you should have made a bit of money by then. Look to set up a trust were the control passes over to her when she turns 25. It is quite simply really .... http://lawcentral.com.au/. Make sure you attach the trust deed to the application form. It is probably a good idea to check with an accountant to make sure everything is done right though. :2twocents
bonkerrs
18th-March-2009, 09:43 AM
Thanks wonderman for the advice!
damien275x
25th-March-2009, 10:16 AM
Haha. Don't do it. They'll grow up and expect to pull out a good 8-10k for their first car soon as they turn 18.
And you won't be able to stop them. :)
Or maybe all my friends are just greedy.
Either way.. they've all wasted money that was carefully invested on a car that will only depreciate in value over time. WASTE.
Stormin_Norman
25th-March-2009, 10:27 AM
family trust?
speak to a good small/mid sized accountant about it. might cost u a grand to set up (bit more then doing it yourself) but itd be worth it.
might be able to do some nice taxation things with it too.
bonkerrs
25th-March-2009, 10:29 AM
Haha. Don't do it. They'll grow up and expect to pull out a good 8-10k for their first car soon as they turn 18.
And you won't be able to stop them. :)
Or maybe all my friends are just greedy.
Either way.. they've all wasted money that was carefully invested on a car that will only depreciate in value over time. WASTE.
What they don't know they can't spend :D
If all works to plan it will be a surprise 25th birthday present. But that's so far away, I might see a nice 1969 red Camero before that time :p:
