My father left my children a portfolio of shares for when they turn 21. Considering the GFC, is it best to keep the portfolio in the children's names?

Q.

My father died last year and left to both of his grandchildren, aged 10 and six years - $20,000 cash plus an equal share in a portfolio of blue chip shares - Commonwealth Bank, St George, Suncorp, IAG, Telstra - for when they turn 21. Before the GFC the shares were worth about $75,000 each - but not sure now. What do you suggest is the best way to invest or maintain this? There are no conditions but obviously I want something very secure and something which won't affect our overall tax. I don't mind keeping the shares as they are - but in whose name? Is it wise to convert to something like a share based investment? And what do we do with the $20,000 each?

Your father was obviously a keen share investor and it would be reasonable to believe that he would expect the shares would continue to be held by the children while waiting for the market to recover. I would prefer to leave the shares in the children's name because there is no children's tax implications to worry about as they were legacies. As the children grow older you could put them in touch with a stockbroker and then they could have an ongoing say in the make up of their portfolio.