Stock donation to Canadian child?

Question

How can I as an American make a stock donation (American stock) to a child in Canada? I want to put it into the child's RESP. I know cash would be easier, but I want to donate actual stock. Please answer only if you really know how to do this.

Answer 1

I'm afraid it can't be done. In Canada you need to be an adult before you can own stock. The age of majority varies by province.

Alberta - 18
British Columbia - 19
Manitoba - 18
New Brunswick - 19
Newfoundland and Labrador - 19
Northwest Territories - 19
Nova Scotia - 19
Nunavut - 19
Ontario - 19
Prince Edward Island - 19
Quebec - 18
Saskatchewan - 19
Yukon Territory - 19

You would be allowed to transfer the stock into the name of an adult as guardian for the child, but legally the adult would own the stock and be free to do whatever they want with it while the child is still a minor.

Of course you could decide that you will be the guardian, and then complete the transfer when the child becomes an adult. If you do that it means that if you die no one can be in any doubt that you wanted this child to have the shares.

If you do decide to go ahead, the simplest and cheapest way to transfer stock is to walk into your local bank and ask their broker team for a blank transfer form. Fill in the form and send it (with the stock certificate if you have one) to the Company Registrar. They will then take you off the shareholder list and add the person you are giving the stock to. You should be able to find the name and address of the Company Registrar on the internet.