Want to gift daughter stock

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Purpose311
Posts: 134
Joined: Fri May 06, 2016 12:54 am

Want to gift daughter stock

Post by Purpose311 »

This may be a dumb question but I want to gift my daughter $1,000 of stock every year. We have funds in a taxable account at vanguard that I want to transfer. Customer service hold was ridiculous and all I want to know is whether I can accomplish this or nudnik going to have to actually sell the stock and pay the potential tax on gain.
hicabob
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Re: Want to gift daughter stock

Post by hicabob »

Not a problem - she will of course have to pay cap gains on your basis if/when she sells.
Topic Author
Purpose311
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Re: Want to gift daughter stock

Post by Purpose311 »

hicabob wrote:Not a problem - she will of course have to pay cap gains on your basis if/when she sells.
Are you familiar as to how to accomplish that on vanguards website? I have no clue. Biggest issue I have with vanguard is I think the website is not user friendly at all
JW-Retired
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Re: Want to gift daughter stock

Post by JW-Retired »

We have gifted our kids old appreciated stock in a Fidelity brokerage account without selling it several times. They each opened Fidelity accounts of their own and we just filled out Fidelity's "Transfer Between Existing Fidelity Brokerage Accounts" form for each case. I drop the paper forms off at a local Fidelity office and if it is a reasonable time before market close the transfer happens that day. The stock cost basis that shows up in their account is correctly shown as what mine was.

You would need to ask Vanguard the best way to do it there.
JW
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pshonore
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Re: Want to gift daughter stock

Post by pshonore »

JW-Retired wrote:We have gifted our kids old appreciated stock in a Fidelity brokerage account without selling it several times. They each opened Fidelity accounts of their own and we just filled out Fidelity's "Transfer Between Existing Fidelity Brokerage Accounts" form for each case. I drop the paper forms off at a local Fidelity office and if it is a reasonable time before market close the transfer happens that day. The stock cost basis that shows up in their account is correctly shown as what mine was.

You would need to ask Vanguard the best way to do it there.
JW
I think dropping off the form is key; otherwise you may need a Medallion signature guarantee.
Topic Author
Purpose311
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Re: Want to gift daughter stock

Post by Purpose311 »

Ok so there is a form I have to fill out which is what I worried about. I can't get medallion signatures on California for some reason so we'll see where it goes. I wish there was a way to just transfer online. Probably more trouble than it's worth for just $1,000. Thanks for your time!
livesoft
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Re: Want to gift daughter stock

Post by livesoft »

Who is your broker?

I transfer stock routinely online. Oh, I see you use Vanguard. Never mind. I needed to get a Medallion Signature Guarantee in order for Vanguard to do this. The 11 6 page form for transfer is available on the Vanguard web site for you to print out, get the MSG, and mail in. I'll post a link for the form in a moment.

Instead of a link, it is easier to put the following text into the Search box at Vanguard: "gifting shares". The results lead directly to "View and print" for the form.
Last edited by livesoft on Fri Sep 02, 2016 9:50 am, edited 3 times in total.
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HueyLD
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Re: Want to gift daughter stock

Post by HueyLD »

See this link. You will need to log in.

https://personal.vanguard.com/us/litful ... bCat2=CGIV
JW-Retired
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Re: Want to gift daughter stock

Post by JW-Retired »

pshonore wrote:
JW-Retired wrote:We have gifted our kids old appreciated stock in a Fidelity brokerage account without selling it several times. They each opened Fidelity accounts of their own and we just filled out Fidelity's "Transfer Between Existing Fidelity Brokerage Accounts" form for each case. I drop the paper forms off at a local Fidelity office and if it is a reasonable time before market close the transfer happens that day. The stock cost basis that shows up in their account is correctly shown as what mine was.

You would need to ask Vanguard the best way to do it there.
JW
I think dropping off the form is key; otherwise you may need a Medallion signature guarantee.
Yes, I think I would if I was mailing it in. There is a place for the Medallion stamp on the form but Fido said no need for it if we were dropping it off at their office. The person behind the front counter does check my ID.
JW
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itstoomuch
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Re: Want to gift daughter stock

Post by itstoomuch »

Purpose311 wrote:Ok so there is a form I have to fill out which is what I worried about. I can't get medallion signatures on California for some reason so we'll see where it goes. I wish there was a way to just transfer online. Probably more trouble than it's worth for just $1,000. Thanks for your time!
What is the issue for people unable to get a face-to-face medallion bank guarantee? It is for your protection, the broker's protection, and the nation's protection. :?: :mrgreen: :confused
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HueyLD
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Re: Want to gift daughter stock

Post by HueyLD »

itstoomuch wrote:What is the issue for people unable to get a face-to-face medallion bank guarantee? It is for your protection, the broker's protection, and the nation's protection. :?: :mrgreen: :confused
The liability insurance cost is too much for a lot of financial institutions. Many still do such guarantees, but they require you to be a "private banking" customer. :shock:
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plover
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Re: Want to gift daughter stock

Post by plover »

We were able to get a Medallion Signature Guarantee (required by Vanguard) at our neighborhood Chase bank. We are not special customers except that we have had accounts there for years.
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