Grandparents and Parents often ask about how they go about investing money into shares for their kids or grandchildren.
The tax implication of setting up ownership of these shares can be tricky and need to be carefully considered.
There are a number of options to set up ownership of a share portfolio correctly.
However if done incorrectly, income tax of up to 68% could be payable as an unintended consequence. The ATO have key guidelines that need to be considered.
A listener wrote into David Koch’s 2UE Your Money Your Life program last week on this issue.
TRAC’s Retirement Adviser David Reed explained on the program the options available when investing for children.
Click on this link and listen from the 33.3 minute mark to find out more:-