Sell Shares Held by Minor / Child

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Selling Shares Held by a Minor / Child

Many parents with young children choose to buy shares for their children as a long-term investment. In Australia however, the law states that a minor (individual under the age of 18) is unable to legally own property or shares. Therefore, an adult – often a parent or guardian – is required to ‘hold’ the shares for the minor until they turn 18 years of age and effectively become the legal owner. Note that while a child cannot be a “legal owner” of shares, a child can still receive the benefit from shares that an adult owns for them. In other words, they can be a beneficial owner.

Let’s say that Robert Smith decides to buy Woolworths shares for his 12 year old son, John. In this case, the shareholding name would be:

“Robert Smith ”

The small brackets in the shareholding name denote what is called an ‘account designation’ which indicates a trust relationship. Here, Robert Smith (the legal owner of the shares) is holding the shares in trust for his son, John Smith (the beneficial owner). When John turns 18 years of age, he will automatically become the legal and beneficial owner of the Woolworths shares.

mom and child with laptop

How to Sell Shares Held by a Minor / Child

To sell shares held for a minor or child, the following process applies:

Step 1: Complete the Online Share Sale Form

The online share sale form takes around five minutes to complete and simply collects basic information about yourself and the shareholding. The key thing you’ll need here is your Securityholder Reference Number (SRN) which should begin with the letter “I”. Other things we’ll ask you in this form include how many shares you wish to sell, bank account details for the legal owner of the shares, and which service level you would like to receive (Value or Express). 

Step 2: Complete the Online ID Check

The online ID check is automatically sent to the legal owner’s email address after the share sale form is completed. Here, they will be guided through a short online form where they will: accept the terms and conditions; call our automated phone line to leave a quick voice message; and provide 100 points of ID via GreenID’s electronic verification platform.
 

Step 3: Send us the Required Documents

Once the online share sale form has been completed and the legal owner of the shares (eg parent of minor) has successfully verified their ID online, our compliance team will need you to email us a certified copy of a birth certificate or other proof of age document for the child or minor.

To get a copy of your documents certified, follow the instructions below:

  1.  Find a person who can certify documents, such as a post office employee, pharmacist, dentist, physiotherapist, nurse, police officer, or lawyer.
  2.  Ask them to certify a copy of the document.  They can do this by photocopying the document and writing the following text “I certify that this is a true and correct copy of the original document sighted on ___/___/ 201X”. They must record their name, address and registration number (if applicable, say for a Justice of the Peace).
  3. Scan or take a legible photo of your certified copy, and email it to us at shares@sellmyshares.com.au

How Long Does it Take to Sell Shares Held by a Minor / Child?

As the leading one off share specialist in Australia, you won’t find a mob who can sell your shares faster! For Express share sales, we will sell your shares on the same day you complete the online share sale form (provided you complete the online ID check before 3pm AEST). For Value share sales, we will process your share sale within 1-2 business days.

Funds from your share sale are transferred to your bank account (or a cheque is posted) 3 business days after the shares are sold. For example, if you sold your shares on Monday, you would receive your money on Thursday.

How Much Does it Cost to Sell Shares Held by a Minor / Child?

We have 3 service levels for our share sale service, starting at Australia’s lowest one off share sale rate of just $40 or 0.2%. The most popular service is our Value service which is $110 or 1%. If you need your shares sold urgently, you can use our same day Express service for $150 or 1.5%.

The brokerage fee is collected from your share sale proceeds before we transfer them to you, so there are no up-front costs and no other hidden fees or charges.