What are the tax implications of opening an account for a child?
Six Park can’t offer tax advice, so we highly recommend that you seek advice from your accountant to assess the tax implications of opening an account for a minor, and the best investment structure for your circumstances.
The investment account will earn dividend income during the course of the year and incur possible capital gains events if/when the account is periodically rebalanced. The person/entity who needs to report such tax information each year will depend on the investment structure you set up.
Additionally, if/when the investment account is transferred to the minor when he/she becomes an adult, the transfer may trigger a capital gains event at that point, depending on the structure, and also when the investments are ultimately sold.