Transfer Ownership Of Shares

[ZebbyUK]

A couple years ago I inherited a whole shed load of shares spread over several companies and they're bringing in a nice little income.

My daughter is 6 months old and I'd like to transfer them over to her. She's got an account of her own and I'd like the income to go straight into her account.

Is there an age limit on how old you have to be to own shares and if there is, can I just have them pay into her account but remain in my name?

Never owned shares before and wouldn't know where to start!

[bednobs]

i dont think there's a problem withchildren owning shares. if they remained yours and you paid the income directly into her account, you'd still have to pay tax on it

[vetuste_ennemi]

ZebbyUK, you could transfer the shares into a stocks and shares ISA in her name and have the income from the shares reinvested (i.e. the dividends are used to buy more shares in the company paying the dividend).
These days dividends from stocks held in ISAs are not exempt from income tax, but growth in the value of the stock is exempt from Capital Gains Tax.
So she could cash some of the shares at age eighteen, say, without penalty.

[vetuste_ennemi]

The point is that the growth in the stocks with reinvestment is likely in the long-term (I guess you're thinking eighteen years or so) to produce greater returns than collecting the dividends as cash and holding them in an interest-bearing savings account.

[vetuste_ennemi]

You really need an independent financial advisor(IFA) to assess your portfolio and lay out the options. I've never used one myself, but I'm sure plenty of people who use this forum know the ins and outs of it and can point you in the right direction.

[Flonska]

Although this is 12 months old, this may be relevant and in some cases may apply . . .

http://www.informdirect.co.uk/shares/can-a-child-own-shares/

In any event you may wish to seek professional advice as to how to proceed.