Child Investment Calculator - Minor Trust

1. Child tax rates

Child tax rates are assumed to remain unchanged over the investment period.

2. Investment returns

Returns are assumed to be consistent each year. Actual market returns are volatile and the sequence of returns may materially impact outcomes.

3. Income vs growth split

A fixed split between income (dividends/distributions) and capital growth is assumed and does not vary over time.

4. Tax treatment of income

Investment income is assumed to be taxed annually at the child’s applicable tax rates, with no income streaming or alternative structuring.

5. Capital gains tax (CGT)

Capital gains are assumed to be realised only on final sale, with current CGT rules and discounts remaining unchanged.

6. Reinvestment of dividend income

Dividend reinvestment is assumed to be turned on. Tax on dividend is paid with additional cash ie by the parents of the child.

7. Contribution behaviour

Contributions are made consistently as entered and are not altered in response to market conditions.

8. Fees and costs

A constant fee rate is assumed. Changes in fees, brokerage, or platform costs over time are not modelled.

9. Inflation

Results are presented in nominal terms unless otherwise specified. Inflation impacts are only included if selected.

10. Structure and ownership

Investments are assumed to be held in a compliant minor trust / informal trust structure, where an adult acts as trustee and the child is the beneficial owner.

11. Regulatory environment

Tax laws, trust rules, and investment regulations are assumed to remain broadly unchanged.

12. No withdrawals or interruptions

The model assumes no early withdrawals, changes in ownership, or disruption to the investment plan.

Disclaimer

This calculator is provided for general information and educational purposes only. It does not constitute financial, investment, tax, or legal advice and does not take into account your objectives, financial situation, or needs.

The results are based on user inputs and modelling assumptions and are illustrative only. Actual outcomes may differ materially due to changes in markets, interest rates, taxation, legislation, and individual circumstances. Past performance and modelled returns are not a reliable indicator of future performance. You should not rely on this calculator as the sole basis for making financial decisions.

This calculator is intended to assist users in understanding potential investment outcomes and trade-offs. It does not recommend any specific investment strategy or asset class.

The creator of this calculator is not a licensed financial adviser and does not provide personal financial advice. Before making any investment or financial decision, you should consider your personal circumstances and seek independent advice from a qualified and licensed professional where appropriate.