I want to give $65k to my teenage kids. How do I stop them spending it?

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I’ve recently inherited a lump sum and would love to set aside $65,000 for each of my three kids (one adult, and two aged 16 and 12) to invest and hopefully grow into a future home deposit.

The eldest is sensible enough to handle shares now, but the younger two – let’s just say I’d prefer to delay access until their brains (and spending habits!) mature a bit. What’s the most tax-effective way to structure this for the minors?

The simple way to go would be to hold the investments in your name. Then you have full control, and you just give them the money at the appropriate time. The drawback with this is that you will be paying tax on assessable income whilst the investments are retained, and will be liable for the capital gains tax when the investments are redeemed.

Most parents are prepared to accept this, particularly where they are not on the top tax bracket and........

© Brisbane Times