What is a minor account?
A minor account is essentially an informal trust whereby you; the parent or guardian allows you to buy shares on behalf of your child.
Who has legal ownership of the shares?
The parent or guardian has legal ownership until they choose to transfer them directly to the minor after they turn 18.
How do I open a minor account with Selfwealth?
Simply click the JOIN NOW button on the Selfwealth website and follow the prompts to register and complete your application. You’ll need to click “Minor” account and from there you’ll have the option to choose whether the minor account will be managed as an individual or joint account.
I already have an account with Selfwealth. Can I open a minor account under the same login?
Yes, you can. You can have multiple accounts under the same login. You just need to go to settings (top right of screen using the drop-down selections) and click “Open a new portfolio”
What information do you require about the minor in order to complete the application form?
We require the minor’s full name and date of birth.
What documents are required to open a minor account?
We require a copy of the minor’s birth certificate, or alternatively, a copy of their passport. Either document does not need to be certified.
Whose TFN should I supply?
We’re unable to advise which TFN should be supplied. We would recommend you consult with a tax professional before making a decision. You may also find this information on the ATO helpful.
It’s worth noting that supplying a TFN isn’t mandatory, however you may wish to consider that supplying a TFN can ensure any dividends or distributions on the investments are taxed at the right rate.
Can I supply a minor TFN if I want to?
Yes, you can. As noted in the previous question, we recommend you consult with a tax professional before making a decision if you’re unsure.
What happens when the minor turns 18?
When the minor turns 18, you’ll have the option to transfer the legal ownership of the shares directly to the minor. Then this can be done easily via Off Market Transfer (OMT).
To transfer the shares via Off Market Transfer, will the minor (now adult) need a trading account?
Yes, they will. The easiest way to arrange this is to have the minor (now adult) apply for an individual trading account with Selfwealth. They’ll need identification documents to apply such as drivers licence, passport, and/or Medicare card.
Are there any fees to transfer the shares via off market transfer to the minor account?
No, for this type of transfer, fees are not applied.
Are there any tax implications when transferring the shares into the minor’s name?
Unfortunately we’re unable to advise directly on this, but there is some useful information on this on the ATO. We’d also recommend you consult a tax professional before making a decision.
Do I have to transfer the shares to the minor after they turn 18?
No, you’re not legally required to transfer the shares to the minor when they turn 18.
I no longer need a minor account. Am I able to transfer the shares back into my name only?
Yes, you can. Shares will need to be transferred via Off Market Transfer.