Investing for kids over 18

Discussion in 'Share Investing Strategies, Theories & Education' started by Chris Jackson, 30th Jun, 2019.

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  1. Chris Jackson

    Chris Jackson New Member

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    Hi there,

    My son is about to reach his 18th birthday and we want to put some money aside for him that he does not have access to or knowledge of. Was thinking ETFs or something like Raiz but was wondering how the tax treatment would be applied (us or him)?

    Any help?

    Thanks

    Chris
     
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  2. twisted strategies

    twisted strategies Well-Known Member

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    welcome to InvestChat ,

    you will have to check the tax-free threshholds if the shares are in his name ( so he will have to know about the holding )

    OR you could set up a trust with him as the benificary , even though you ( and/or your partner control it that is add/control assets )

    you will need some professional advice to set up the trust properly .

    participating in the Dividend Reinvestment Scheme might be a suitable way of growing the holdings but it will still have tax implications at some stage ( which might be offset by franking credits )
     
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  3. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    You could act as trustee for him, but he would need to declare the income in his tax returns each year - if dividends are paid.
     
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  4. twisted strategies

    twisted strategies Well-Known Member

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    2 people like this.