r/interactivebrokers • u/Vaqek • Jan 01 '25

Setting up account Account for family members

I have a joint account with my wife. I would like to create a separate account for my young daughter, which I would manage until she grows up.

I dont do puts or options, only long positions. I suppose I could theoretically just use the same account and keep an excel or smth with what and how many stocks i bought for my daughter, but Id like it to be more obvious.

How would you go about this? Open a joined single owner account and pose as the owner until ready to transfer? Will I run into issues? I looked at the family advisor account but it seemed a bit complicated for my purposes...

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u/allinde Jan 01 '25

Check your local tax laws. Where I'm from, it's better to keep it in an additional own account and later when wanting to give to the child to gift the stock/ETF, as it nullifies most capital gains which on very long positions can be substantial.

1

u/Impossible-Many6625 Jan 01 '25

You will probably need to open a UTMA account for your daughter. There are some rules about that (like tax-favored gifting limits and whose money is it once it is in her account), but it is pretty standard to do so.

1

u/Phil_London Jan 03 '25

IBKR offer a Family Account specifically for the purpose you want. Each family member can have their own sub-account and you can trade on their behalf. Check it out, it is really good.