Buying shares/managed funds for someone else?

[Awesomandy]

Just wondering... Say, if I want to buy some shares or managed funds for someone else (i.e. I buy something with my money, but under someone else's name - read: gift), how would I do that?

 

[BlingBling]

Read up on gifting on the ATO site..

 

[Awesomandy]

Thanks.
However, I'm looking at the actual process rather than at the tax effect.

 

[Surly]

I have wondered about this too as I would like to buy some shares for my 9 yo half brother at some stage.

I wasted far too many years before getting involved in the stock market and would like to get him started early.

cheers
Surly

 

[Whiskers]

Just wondering... Say, if I want to buy some shares or managed funds for someone else (i.e. I buy something with my money, but under someone else's name - read: gift), how would I do that?

My ex and I were gifted cash when our kids were born. We just opened a high interest bank account in their name with one of us as trustee. I would imagine you could still do the same with a share trading account, with you trading as trustee.

 

[Julia]

Do some careful checking about shares in the name of a child.
There is some reason not to do it, i.e. perhaps tax.
Sorry I can't remember what it was about, but I've heard Noel Whittaker and Daryl Dixon both say it's not practical.

Reece or Duckman should be able to offer some advice about this.

 

[xtanda]

My ex and I were gifted cash when our kids were born. We just opened a high interest bank account in their name with one of us as trustee. I would imagine you could still do the same with a share trading account, with you trading as trustee.

Whiskers,
Just reminder that do not forget to obtain Tax File Number for each your kid that has account opened, to avoid fine from ATO to have income without TFN.

I heard one person talk to talkback radio 2UE this morning with John Laws. He got that unexpected fine notice and he is really cranky about it....

 

[Judd]

I think there is another reason besides tax, ie adults attempting to divert taxable income to their children. As far as I understand, children under that age of 18 are considered "infants" and are unable to enter into lawful contracts. Buying shares or managed funds is apparently entering into a contract.