Minor as partner

James Choe on

Greetings,
Are there any issues with a minor becoming a member of an
investment club? Can a minor sign a partnership agreement?

Thanks in advance

Laurie Frederiksen on

Hi James,

This can/is certainly being done by a lot of groups, especially family clubs.

There are small legal issues to be aware of. I ran a search on our site for the word

minors and found quite a bit of information that has come up in past discussions. Here is

a link to a page where you can do such a search:

I’m not a lawyer but it appears as though a minor cannot be bound by signing a contract such as a

partnership agreement. Perhaps there are lawyers reading this list that can expand on this a little bit.

There are also tax issues to be aware of relating to investment income earned by minors. I assume

if you are a parent that you are already aware of these things.

But, I hope none of these things deter you. An investment club is an ideal venue to share

a very interesting and valuable activity with minor aged children.

Laurie Frederiksen

www.bivio.com