Yes, only parents and legal guardians can set up a Tax-Free Savings Account in their child’s name. To do so the minor must have his or her own ID number and zeros can be entered in place of a tax number for a minor. If the parent or guardian uses the parent’s tax number, then all contributions will be linked to the parent’s tax number and count towards the parent’s Tax-Free Savings Account contribution limit.
In order to set up a TFSA for a minor, the following is required:
- The child’s parent or legal guardian has to complete the application
- The parent has to supply a copy of the unabridged birth certificate of the minor
- The parent has to supply a copy of their (the parent's) ID
Please note that grandparents or other family members other than the parent or legal guardian of the minor cannot sign up the child for a TFSA. It must be the parent or legal guardian who completes the application. Debit orders can be processed from the grandparent's bank account however the application forms must be signed by the parent or legal guardian.
10X Index Fund Managers (RF) Pty Ltd is a Manager registered under the Collective Investment Schemes Control Act.
