can i send stocks as a gift? A practical guide

This article explains whether can i send stocks as a gift for U.S. equities, how to do it, tax and legal implications, brokerage processes, special cases (minors, restricted shares, international r...

2025-12-31 16:00:00

By Meta Cipher

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Can I Send Stocks as a Gift?

Yes — can i send stocks as a gift? In the U.S. brokerage system, gifting stocks means transferring ownership of publicly traded shares from one person to another without a sale. People gift stocks for tax efficiency, estate planning, teaching investing, or charitable purposes. This guide explains how gifting works, the common methods, paperwork, tax rules, risks, and practical checklists so you can act with confidence.

截至 2026-01-05，据 Yahoo Finance 报道，financial planning moments such as reviewing budgets and checking beneficiaries are timely reminders to evaluate gifts and estate moves. That context matters because gifts of stock are often part of broader yearly money actions (tax planning, charitable giving, retirement planning).

Note: this article focuses on gifting publicly traded U.S. equities via broker-dealer systems and commonly used third-party apps. It does not cover private securities transfers outside broker custody. For custody, trading, or secure wallet recommendations in Web3 contexts, consider Bitget and the Bitget Wallet as trusted options.

Why Gift Stocks?

Gifting stocks can be motivated by several practical benefits and some downsides you should weigh before transferring shares.

Benefits

Tax efficiency: gifting appreciated shares (instead of selling first) may move future appreciation out of your estate and avoid immediate capital gains tax on your taxable accounts.
Estate and wealth transfer: gifts can transfer assets to heirs while you are alive, reducing estate size for future estate-tax calculations.
Education and incentive: gifting stock to family members or employees helps teach investing or align incentives.
Charitable advantage: donating appreciated stock to a qualified charity can produce a charitable deduction and avoid capital gains on the donated appreciation.

Downsides and cautions

Recipient tax liability: the recipient generally inherits your cost basis and holding period and will owe capital gains tax if they sell at a gain later.
Market risk: once gifted, you lose control; the recipient bears market exposure and decision risk.
Paperwork and timing: transfers can require forms and take days to weeks, especially across brokerages.

Common Ways to Gift Stocks

There are multiple methods to transfer shares. The exact steps depend on the brokerage(s), the recipient type (adult, minor, charity, foreign person), and the security type (publicly traded, restricted, fractional). Below are the most common methods.

Broker-to-Broker Electronic Transfer (In-kind transfer)

Description

A broker-to-broker electronic transfer — often called an in-kind transfer — moves shares directly from your brokerage account into the recipient’s brokerage account. This is done without liquidating the shares, so no sale is triggered.

What’s required

Recipient brokerage account number and account registration name.
Recipient broker’s deposit transfer system details (DTC number, if needed) and ACATS/DTC transfer forms in some cases.
Your brokerage may require a signed transfer authorization form.

Process

You fill out a transfer form with your broker or online portal and provide the recipient’s account info.
Brokers communicate via ACATS or DTC systems to move securities.
Timing is typically 1–7 business days but can be longer for unusual assets.

When to use

This is the usual choice when both parties have full-service brokerage accounts and you want to transfer whole shares without a taxable sale.

Internal Transfer within the Same Brokerage

Description

If both donor and recipient use the same brokerage, the transfer can be much simpler and faster. Many large brokers permit an internal transfer via an online gift form or account “transfer of assets” page.

Advantages

Faster processing (often 1–3 business days).
Simpler ID verification and fewer forms.
Broker may offer online gifting workflows (email gift notifications, templates).

Examples

Many brokers allow you to transfer shares internally with just the recipient’s name and account number or by selecting the recipient from a known-account list. If you and the recipient are both on Bitget, look for the exchange’s internal transfer or gifting features and for guidance on Bitget’s help center.

Buying Shares Directly in the Recipient’s Name

Description

Instead of transferring existing shares, you can purchase shares and place them directly into the recipient’s brokerage account.

When this is simpler

The recipient already has an account and provides you the account details.
You want the recipient to have a fresh purchase date and a clean custodial record.

Considerations

The purchase is a gift of cash used to buy stock, not a transfer of your existing basis.
You’ll fund the purchase, and the cost basis will be the purchase price on the date the broker executes the trade.

Custodial Accounts (UGMA/UTMA) and Gifts to Minors

Description

Custodial accounts (Uniform Gifts to Minors Act — UGMA, or Uniform Transfers to Minors Act — UTMA) hold assets for a minor under a named custodian until the state-specified age when control transfers to the child.

Key points

The custodian manages the account for the benefit of the child until the termination age (commonly 18 or 21, depending on state law; some states permit older ages under UTMA).
Gifts are irrevocable: once transferred to the custodial account, the assets belong to the child.

Tax and strategy

The “kiddie tax” rules may tax unearned income above threshold amounts at the child’s parents’ rate or at trust rates, depending on current tax law.
Gifts to a custodial account can help build long-term investment for education or other needs, but they may affect financial-aid calculations.

Transfer-on-Death (TOD) / Payable-on-Death (POD) Designations

Description

A Transfer-on-Death (TOD) designation names one or more beneficiaries to receive securities in an account upon the owner’s death. TODs pass assets directly to beneficiaries without probate.

Important distinctions

TOD is not an inter vivos (during life) gift; beneficiaries receive assets only at death.
TOD preserves your lifetime control of the shares and avoids immediate tax consequences of a gift.
TODs differ by broker and account type; some brokerages support TOD for brokerage accounts, IRAs have different beneficiary rules.

Physical Stock Certificates and Certificate Transfers

Description

Although increasingly rare, physical stock certificates still exist. Transferring them typically requires endorsing certificates, a medallion signature guarantee, and delivering certificates to the receiving broker or transfer agent.

Practical drawbacks

Slow and paperwork-intensive process.
Many broker-dealers discourage or charge to process certificates.
You may need to reissue or convert to electronic book-entry shares, adding time and fees.

Gift Cards, Mobile Apps, and Third-Party Services

Description

Various services offer stock-gift cards, fractional-share gifting, or app-based gifting features. These include gift-card-style products and mobile apps that let you buy fractional shares as a present.

Convenience vs. limits

These services are very convenient for first-time or small-dollar gifts and often send an email or physical card to the recipient.
Some trading apps restrict gifting or require the recipient to open an account on the same platform.
Fractional-share gifts are common on app platforms but may not be transferrable out of the platform until consolidated shares or full shares exist.

Bitget note: when using third-party or app-based gift services, check whether the recipient must accept the gift into a Bitget Wallet or Bitget account; Bitget’s wallet and exchange offer clear deposit and receiving instructions for supported products.

Required Information, Paperwork, and Process

Typical information you’ll need to provide for a gift transfer includes:

Donor account details (name, account number, broker).
Recipient details (exact account registration name as it appears on the account, account number, broker name). For minors or custodial accounts, include custodian and minor names.
Recipient Social Security Number (SSN) or Taxpayer Identification Number (TIN) in many cases (some brokers require SSN/TIN to accept inbound transfers).
Security details: ticker symbol, CUSIP (for uncommon securities), and number of shares.
Donor signature or online authorization, depending on broker requirements.

Timing and coordination

Internal same-broker transfers: typically 1–3 business days.
Broker-to-broker ACATS/DTC transfers: typically 1–7 business days but can stretch longer for unusual securities.
Paper certificates or transfers involving transfer agents can take multiple weeks.

Broker coordination

Expect communication between brokers about processing, holds, and restrictions.
Some brokers charge transfer-out fees or require medallion signature guarantees for certain paper-based transfers.

Tax and Legal Considerations

Gifting stock can trigger tax reporting requirements and affect both donor and recipient tax positions. The following subsections summarize widely applicable U.S. tax rules; consult a tax professional for specific advice.

Gift Tax and Annual Exclusion

Annual exclusion: As of the latest planning guidance, the annual gift-tax exclusion is $19,000 per recipient for 2026 (check current IRS updates). That means you can give up to $19,000 worth of gifts to any one person in a calendar year without filing Form 709.
Gifts above the annual exclusion: If you gift more than the annual exclusion to any single recipient in a tax year, you generally must file IRS Form 709 (United States Gift [and Generation-Skipping Transfer] Tax Return). Filing does not necessarily trigger a tax bill; it reduces your lifetime gift/estate tax exemption.
Lifetime exemption: Large transfers reduce the unified lifetime exemption (the cumulative amount you can transfer tax-free during life and at death). The lifetime exemption amount changes over time with tax law; check current IRS figures or consult an adviser.

As of 2026, review guidance and file Form 709 when required. If you’re uncertain about thresholds, keep good records of gift date, number of shares, and fair-market value on the date of transfer.

Cost Basis and Capital Gains for the Recipient

Carryover basis: For gifts of appreciated stock, the recipient generally inherits the donor’s cost basis and holding period. If you bought shares at $10 and they are worth $50 when you gift them, the recipient’s cost basis is typically $10.
Selling after the gift: The recipient will owe capital gains tax based on the difference between the sale price and the donor’s original basis, and the holding period (short-term vs. long-term) includes the donor’s holding period.
Exception for basis adjustments on gifts sold at a loss: If the fair market value on the date of the gift is less than the donor’s basis and the recipient later sells at a loss, special basis rules apply. Consult IRS rules for the exact ordering and calculations.

Spousal and Nonresident Recipient Rules

Spousal transfers: Transfers between U.S. citizen spouses are generally unlimited and tax-free. No gift tax generally applies.
Non-U.S.-citizen spouse: Special annual exclusion rules exist for gifts to noncitizen spouses; amounts may be limited and indexed annually. Check current IRS guidance.
Foreign recipients: Gifting stock to a non-U.S. resident can invoke additional reporting, withholding, or brokerage acceptance issues. Many U.S. brokerages will not accept inbound transfers for foreign-domiciled recipients or may require additional documentation.

Charitable Donations of Stock

Appraised value and deduction: Donating appreciated, publicly traded stock to a qualified charity typically allows you to deduct the fair-market value of the donated shares on the donation date if you itemize, and you generally avoid capital gains tax on the appreciated portion.
Documentation: For gifts over certain thresholds, detailed documentation or appraisal may be required. The charity and your broker must acknowledge the gift.
Qualified charities: Only donations to IRS-qualified public charities generate charitable deductions. Gifts to donor-advised funds, private foundations, or certain non-qualifying entities follow different rules.

Kiddie Tax and Other Special Rules

Kiddie tax: Children with unearned income above statutory thresholds may pay tax computed using their parents’ tax rate for certain amounts. Gifting to minors via custodial accounts can therefore create different tax outcomes than gifting to adults.
Financial aid implications: Assets in the child’s name or custodial accounts often have larger negative effects on need-based financial aid calculations than parental assets. Consider 529s or education-specific vehicles if financial aid is a concern.

Fees, Timing, and Practical Constraints

Broker fees: Some brokers charge transfer-out fees, paper certificate handling fees, or processing fees for certain transfers. Check your broker’s fee schedule.
Fractional shares: Not all brokers support transferring fractional shares between accounts. If your gift includes fractional shares, they may need to be sold or consolidated into whole shares before transfer.
Processing times: Internal transfers are faster; inter-firm transfers can take longer. Paper certificates and transfers involving transfer agents add delays.
Account acceptance: Brokers may refuse inbound transfers for accounts that lack required tax ID information or for certain account types.

Gifting Restricted or Complex Securities

Restricted or non-standard securities have additional constraints.

Restricted stock: Employee stock subject to vesting or lock-up agreements may be non-transferable. Company policies and securities law often restrict transfers. Company or plan administrator consent may be required.
Private-company shares: Privately held shares typically have transfer restrictions and buyback rights; gifting often needs board and company approval and private transfer agreements.
Options and derivatives: Options, warrants, or other derivatives generally cannot be gifted directly in the same way as shares without following plan or exchange rules. In many cases, it’s preferable to exercise or sell and gift the proceeds.

If you have restricted or complex securities, consult the issuing company, plan administrator, or legal counsel before attempting a gift.

International and Cross-Border Issues

Gifting stocks to recipients outside the U.S. introduces complications:

Brokerage acceptance: Many U.S. brokerages will not accept transfers into foreign-domiciled accounts or may require local brokerage partners.
Tax withholding and reporting: Cross-border gifts can trigger reporting obligations in the donor’s and recipient’s jurisdictions, and foreign taxes or withholding rules may apply on future sales.
Currency and regulatory constraints: If the recipient converts proceeds into another currency or repatriates funds, exchange controls or additional reporting may apply.

If your recipient lives abroad, coordinate with both brokerages and a cross-border tax advisor.

Risks and Considerations for Donors and Recipients

Market volatility after transfer: After gifting, any further appreciation or depreciation belongs to the recipient.
Unwanted tax consequences for recipient: Recipients may be surprised by capital gains tax, kiddie tax, or reporting obligations.
Loss of control: A gift is irrevocable — you cannot unilaterally retrieve the shares once the transfer is final (except by agreement with the recipient).
Estate-planning trade-offs: Gifting reduces assets in your estate today but may use part of your lifetime exemption and remove the potential benefit of a step-up in basis at death.

Document your gift and communicate clearly with the recipient so tax and investment decisions are made intentionally.

Step-by-Step Checklists

Below are concise, practical checklists to follow when gifting stock. Keep records of values, dates, forms, and communications.

Checklist A — Same-Broker Transfers (Quick Guide)

Confirm both accounts are at the same brokerage and that the recipient’s account is active.
Verify the recipient’s account registration name exactly matches their legal name.
Check whether SSN/TIN is required and that the recipient has provided it on file.
Use the brokerage’s internal transfer/gift feature or fill the online/print gift form.
Specify ticker and number of shares to transfer; verify for fractional shares.
Sign/authorize transfer; save confirmation and transaction ID.
Verify transfer completion (check recipient account) and confirm cost-basis documentation for recipient.
Record fair-market value on the date of transfer for tax records.

Checklist B — Different Brokerage or Charity Transfer

Confirm recipient broker accepts inbound ACATS/DTC transfers and request recipient account details (broker name, account number, DTC/ACATS info if available).
Check if the recipient needs to open a specific account type (individual, custodial, charity brokerage account) to accept the transfer.
Contact your broker to initiate an ACATS/DTC transfer; obtain and complete any required transfer-out forms.
Provide donor signature(s), medallion signature guarantee if required, and any needed tax IDs (donor and recipient).
For charitable donations, coordinate with the charity’s donation acceptance office and obtain required acknowledgment.
Confirm fractional-share handling or whether the broker will round or liquidate fractions.
Monitor transfer progress; expect 1–7 business days for electronic inter-firm transfers. For charities, obtain gift acknowledgement with date and fair-market value.
File Form 709 if the total gifts to any one recipient exceed the annual exclusion for the year.

Alternatives to Gifting Shares Directly

If transferring shares is impractical, consider alternatives:

Gift cash earmarked for share purchases (recipient buys shares themselves; basis will be purchase price).
Set up a custodial account or 529 plan for education savings (529s offer tax-advantaged growth for qualified education expenses).
Establish a trust (revocable or irrevocable) to control timing and tax treatment of transfers.
Use a donor-advised fund for charitable gifting of appreciated stock to realize tax benefits while retaining grant flexibility.
Purchase a stock-gift card or use an app-based fractional-share gift service for small-dollar or introductory gifts.

Bitget note: Bitget’s wallet solutions and exchange services can be part of a gifting workflow in Web3 contexts. For fiat and brokerage-style gifting of U.S. equities, prefer trusted brokerages or custodial accounts.

Frequently Asked Questions (FAQ)

Q: Can I gift fractional shares?

A: It depends on the brokerage. Some platforms support fractional shares for internal gifting but many broker-to-broker transfers require whole shares. If the recipient’s broker cannot accept fractions, the donor may need to consolidate or sell fractional shares first.

Q: Can I gift via my trading app?

A: Many trading apps offer gifting features or gift cards, but app rules vary. If you want to transfer existing shares, check whether the app supports outbound transfers and whether the recipient must have an account on the same platform. Bitget Wallet supports secure custody for supported assets — consult Bitget support for cross-product workflows.

Q: Do I need the recipient’s SSN?

A: Many brokers require the recipient’s SSN or TIN to open or accept transfers into an account. For gifts to charities, charities provide their EIN. Check the receiving broker’s documentation.

Q: What happens to dividends after the gift?

A: After ownership transfers, dividends are paid to the new owner. If a dividend is declared before the gift date but payable after, the dividend belongs to the owner on the record date; check timing and broker rules.

Q: Can I undo a gift?

A: Generally, gifts are irrevocable once the transfer is completed. If both parties agree, the recipient can transfer the shares back, but that is a new transfer (and may have tax and gift-reporting consequences). For transfers that haven’t settled, contact your broker immediately to see if reversal is possible.

Practical Closing Notes and Next Steps

If you’ve been asking “can i send stocks as a gift,” the short answer is yes — with multiple methods and clear trade-offs. Before you act:

Confirm recipient account details and whether their broker accepts inbound gifts.
Document fair-market value and basis on the transfer date for tax records.
Consider whether gifting now or designating via TOD provides the better estate and tax outcome.
For web3 custody needs or secure wallet transfers, consider Bitget Wallet and Bitget exchange services to manage assets safely.

Ready to start? If you and your recipient both use Bitget, review Bitget’s help resources or contact Bitget support to learn about internal transfers, custodial options, and security best practices.

Explore Bitget services and Bitget Wallet to make transfers safer and more convenient for recipients who prefer Web3-friendly custody options.

The content above has been sourced from the internet and generated using AI. For high-quality content, please visit Bitget Academy.