Episode description
Episode description
In this episode, Warren Ingram explores the tax implications of investing money on behalf of a child. He explains why putting money in a child's name doesn't avoid taxes, as parents are taxed until the child turns 18, and discusses the tax consequences of donating money to children. Warren also highlights the benefits and cautions of tax-free savings accounts for children and suggests investing in endowments or unit trusts to benefit the child long-term. Tune in for insights on making smart financial decisions for your child's future.
Takeaways
- Investing money in a child's name does not avoid tax for the parent.
- Donating money to a child has tax consequences for the parent.
- Tax-free savings accounts for children should not be used for personal purposes.
- Consider investing in an endowment or unit trust for long-term benefits for the child.
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