How should deposit income of minors be taxed?

T

triggs

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In the case of a deposit account or stock brokers account in name of a Minor with Parent as Trustee-How should the deposit interest or dividends be handled for Tax declaration purposes?
Any views would be appreciated
 
Minors can't own assets until 18, so my understanding is that any income from assets that parents may have allocated to them is still income of the parents'.
 
Is this true as i was thinking of setting up a minor account for my child with Degiro and regularly investing in VTI ETF for their future.
 
I was looking into setting up an account with Degiro for a minor child and purchasing a Vanguard ETF (s). It appears that I have to set up my own name? I suppose I could set up in joint names? I am concerned that there would be tax implications for myself. The funds are from the minor's bank account. Any thoughts or advice?
 
You cannot enforce a contract against a child until they are 18. Therefore a stockbroker will not open an account in a minor's name.

If you want to open an account for a minor, it should be done under a bare trust. There's no avoiding the tax on profits though.


Steven
www.bluewaterfp.ie
 
The cleanest approach is something like Standard Life's Bare Trust product, as tax on the life company stuff is dealt with at source.
 
I was wondering about this also, I saw that ETFmatic have children's accounts, although not sure if in Ireland yet. Might a good way to get teenagers started on learning and thinking about investing.
 
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