Who is the owner of these shares?

John Jones holds the shares in trust for sally.

With whom does the tax burden lay with now SALLY SMITH is over 18 years of age
1 upon sale
2 dividend income

The shares are held in an account with the following name with Comsec
Mr John Jones < Miss sally smith A/C >

if sally is the owner why is a transfer fee of $56 required to change the name holding
Thanks

 

Have a wade through this.

Children's share investments

Slight amendment. Obviously there can be differing circumstances. My brood was left money by a relative through a Will. There was no formal trust but I invested those funds in shares such as SK <SK Kids name>. However, due to those circumstances, they were provided with a TFN and subject to the usual taxation arrangements in their names, ie tax free threshold applied, blah, blah.

One, after they turned 18, requested I sell the shares. Any capital gains tax was their responsibility.

Transferring the shares to the actual name of the kids (from SRN to HIN) involves a broker and it works on the understanding you normally get nothing for nothing. So there is a cost involved. Probably also involves identification requirements too; photo ID, note from Mum, etc.

 

The simple way is just check with the chess sponsor broker that being linkmark

Simple way is just ring up the chess sponsor ,as CBA i think is within link market services -have the {HIN} number and check who the income tax franked div's payment history very simple..

Tax wise sally holds the can for the tax side once the name is changed,and income franking credits ect.

Also not 100% sure about the cost of $56.00,as i recently changed a few names from different holdings and all it took was a phone call to the link below several forms to fill out then just post them back,but i may have missed the payment section..
imho...
Link Market Services

 

John is the legal owner, Sally's name is in the designation field but that doesn't mean it is recognised as being held in trust.

Have a look at Securities Registrars Association of Australia Inc. (SRA)

Under CHESS you can't just change the name of the legal owner (except for corrections), a new account (HIN) has to be set up, and the shares actual move by transfer from one account to the other.

 

There is a fee for a change of legal owner. Beneficial ownership doesnt change. There is no CGT issue for a change of legal owner in this situation. Typically for a child turning 18 the registry fee is sometimes waived.

When the shares were acquired they could have been noted as non-beneficially held.

I just had a client audited for bank accounts setup for nieces and nephews. Its not her income. Bank wont accept parents TFNs. Kids dont have TFNs and are too young to apply. Showed ATO proof accounts designated for each kids name and they accepted it.