Sometime back I recall you saying that you bought your new born nephew/niece some Satrix 40's. I want to do the same for my first grandchild. I know that I can buy them on OST but they will be mixed up with my own Satrix 40's. What I need is a certificate of some sort in the child's name. Can OST do this or must I talk to the Satrix guys? What did you do?
I would like to open accounts for my 7 year old nephews and nieces to make a once off invest for each in STX40. Subsequent trading will be infrequent - will follow a long term strategy. Who will be responsible for tax if any is due and who'll have to declare the interest and dividends? I would prefer if the parents were not to know about the investments.
Eric The guadrian of the child is responsible for including any taxable income earned by his children in his tax return. You may also need to consider the effect of donations tax, at 25% it can be quite onerous.
Eric if teh child is registered as a taxpayer then teh taxable minimum applies - circa R5300 per month. So unless the value exceeds that then its all good. you making a post tax addition to portfolio is already taxed so no issue there