Although minors are taxed in their own name, when you invest money on behalf of your children, you as parent will be taxed on the income generated as this forms part your taxable income. Upon donating or settling income upon your child, the resultant income will be taxed in your hands.
Upon your children reaching the age of majority (18), they will by law become the owner of the investment – freeing you as parent from all transactional rights and obligations in relation to their investments.
For expert legal advice on tax issues, contact our Tax Law Department.