I am in the process of opening a children's brokerage account in my child’s name using a trust-like structure. The account will be titled: "My name as trustee for Child's name." Once the child turns 18, they will take over the account, and my name will be removed.
The bank account used for transferring funds into (and out of) the brokerage account is in my name.
Each year, I plan to invest a specific amount of money. However, since these investments will be purchased on the open market, I suspect the total won't always align to a whole number, leaving some surplus funds. For example, if I aim to invest approximately $500 and each share costs $52, I could transfer $500 to the brokerage account, purchase 9 shares (totaling $468), and pay $9.50 in brokerage fees, leaving $22.50 unspent from the initial $500.
Is it acceptable to transfer these unused funds back to my account without causing the ATO to question the ownership of the funds? I will ensure all dividends from the child's investments are either reinvested or retained in the brokerage account to maintain clarity regarding ownership.
My goal is to avoid any situation where the ATO might assume that I own the shares and, therefore, hold me liable for the associated taxes. Essentially, I am hoping someone can confirm at what point does the money that I am gifting them to purchase shares, transfer ownership?
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