12
How to Gift Stock
You’re our first priority.
Every time.
NerdWallet, Inc. is an independent publisher and comparison service, not an investment advisor. Its articles, interactive tools and other content are provided to you for free, as self-help tools and for informational purposes only. They are not intended to provide investment advice. NerdWallet does not and cannot guarantee the accuracy or applicability of any information in regard to your individual circumstances. Examples are hypothetical, and we encourage you to seek personalized advice from qualified professionals regarding specific investment issues. Our estimates are based on past market performance, and past performance is not a guarantee of future performance.
We believe everyone should be able to make financial decisions with confidence. And while our site doesn’t feature every company or financial product available on the market, we’re proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward — and free.
So how do we make money? Our partners compensate us. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services. Here is a list of our partners.
How to Give Stock as a Gift (And Why Tax Pros Like the Idea)
Gifting stock may provide value for your loved ones long after the holidays have come and gone.
Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money.
The investing information provided on this page is for educational purposes only. NerdWallet, Inc. does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments.
Updated · 3 min readHow is this page expert verified?
NerdWallet's content is fact-checked for accuracy, timeliness and relevance. It undergoes a thorough review process involving writers and editors to ensure the information is as clear and complete as possible.
More on our editorial rigor
Managing Editor
12 years of experience Expertise Brokerage accounts stock market cryptocurrencyChris Davis is a Managing Editor on the Investing team. As a writer, he covered the stock market, investing strategies and investment accounts, and as a spokesperson, he appeared on NBC Bay Area and was quoted in Forbes, Apartment Therapy, Martha Stewart and Lifewire, among others. His work has appeared in The Associated Press, The Washington Post, MSN, Yahoo Finance, MarketWatch, Newsday and TheStreet.
Chris Davis is a Managing Editor on the Investing team. As a writer, he covered the stock market, investing strategies and investment accounts, and as a spokesperson, he appeared on NBC Bay Area and was quoted in Forbes, Apartment Therapy, Martha Stewart and Lifewire, among others. His work has appeared in The Associated Press, The Washington Post, MSN, Yahoo Finance, MarketWatch, Newsday and TheStreet. Published in Managing Editor + more + more
Certified Financial Planner®
Michael Randall, CFA, CFP®, EA is the Owner and Financial Planner at Oak Summit Wealth Management, a fee-only fiduciary firm based in San Diego, California. He brings more than a decade of experience helping clients with comprehensive financial planning across investments, taxes, and estate strategies. Michael earned his degree in economics from the University of California, Berkeley, where he also volunteers as an alumni ambassador. At NerdWallet, our content goes through a rigorous editorial review process. We have such confidence in our accurate and useful content that we let outside experts inspect our work. Certified Financial Planner® + more + more
Head of Content, Investing & Taxes
19 years of experience Expertise Retirement planning investment management investment accountsArielle O’Shea leads the investing and taxes team at NerdWallet. She has covered personal finance and investing for nearly 20 years, and was a senior writer and spokesperson at NerdWallet before becoming an editor. Previously, she was a researcher and reporter for leading personal finance journalist and author Jean Chatzky, a role that included developing financial education programs, interviewing subject matter experts and helping to produce television and radio segments. Arielle has appeared on the "Today" show, NBC News and ABC's "World News Tonight," and has been quoted in national publications including The New York Times, MarketWatch and Bloomberg News. She is based in Charlottesville, Virginia.
Arielle O’Shea leads the investing and taxes team at NerdWallet. She has covered personal finance and investing for nearly 20 years, and was a senior writer and spokesperson at NerdWallet before becoming an editor. Previously, she was a researcher and reporter for leading personal finance journalist and author Jean Chatzky, a role that included developing financial education programs, interviewing subject matter experts and helping to produce television and radio segments. Arielle has appeared on the "Today" show, NBC News and ABC's "World News Tonight," and has been quoted in national publications including The New York Times, MarketWatch and Bloomberg News. She is based in Charlottesville, Virginia. Published in Head of Content, Investing & Taxes + more + moreWhat's a gift that has the potential to be worth more tomorrow than it is today? Stock. Gifting stock is easier than you think, and doing so may offer a few perks for you, too.
What's a gift that has the potential to be worth more tomorrow than it is today? Stock. Gifting stock is easier than you think, and doing so may offer a few perks for you, too. Can you gift stock? Can you gift stock? The benefits of gifting stocks The benefits of gifting stocks How to gift stock in three steps How to gift stock in three stepsCan you gift stock?
Can you gift stock?Yes, you can gift stock. Gifting stock means the recipient will benefit from any increases in the stock's value. You can gift stock to kids through a custodial account, and you can gift stock to adults with a simple transfer.
Yes, you can gift stock. Gifting stock means the recipient will benefit from any increases in the stock's value. You can gift stock to kids through a custodial account , and you can gift stock to adults with a simple transfer.» Check out our roundup of the best custodial accounts
» Check out our roundup » Check out our roundup of the best custodial accountsThe more you earn, the more complex your taxes become. Learn the 10 traps to dodge.
GET THE FREE GUIDEon NerdWallet Wealth Partners' site. For informational purposes only. NerdWallet Wealth Partners does not provide tax or legal advice.
on NerdWallet Wealth Partners' site. For informational purposes only. NerdWallet Wealth Partners does not provide tax or legal advice.The benefits of gifting stocks
The benefits of gifting stocksHang around seasoned investors long enough, and you’ll likely hear a familiar refrain: If only I’d started investing sooner. Giving stocks as a gift can help your family and friends put this advice into practice — especially kids, who may benefit most from long-term compounding returns.
Hang around seasoned investors long enough, and you’ll likely hear a familiar refrain: If only I’d started investing sooner. Giving stocks as a gift can help your family and friends put this advice into practice — especially kids, who may benefit most from long-term compounding returns.And if you’re giving stocks you already own, there could be a tax advantage for you. From a tax perspective, gifting is a smart way to transfer an appreciated stock, says Karl Schwartz, a certified public accountant and regional director at Team Hewins in Boca Raton, Florida.
And if you’re giving stocks you already own, there could be a tax advantage for you. From a tax perspective, gifting is a smart way to transfer an appreciated stock, says Karl Schwartz, a certified public accountant and regional director at Team Hewins in Boca Raton, Florida."Let’s say you’re an adult and you have this stock with a lot of gains built into it. If you were to sell it, you would pay taxes on the gain. Assuming it’s long-term, you might pay 15%," he says. But instead of selling the stock, you could give it as a gift, transferring the gains to the recipient.
"Let’s say you’re an adult and you have this stock with a lot of gains built into it. If you were to sell it, you would pay taxes on the gain. Assuming it’s long-term, you might pay 15%," he says. But instead of selling the stock, you could give it as a gift, transferring the gains to the recipient.» Check out our roundup of the best online brokerages for stock trading
» Check out » Check out our roundup of the best online brokerages for stock trading"The person who received the stock now has that appreciated stock. They can hold it if they want, but if they sell it, assuming they’re in a lower tax bracket, they might pay 0% in capital gains taxes," Schwartz says.
"The person who received the stock now has that appreciated stock. They can hold it if they want, but if they sell it, assuming they’re in a lower tax bracket, they might pay 0% in capital gains taxes," Schwartz says.In other words, both the giver and receiver could avoid paying capital gains altogether on stock that’s been appreciating for years. (Learn more about how capital gains taxes work.)
In other words, both the giver and receiver could avoid paying capital gains altogether on stock that’s been appreciating for years. (Learn more about how capital gains taxes work.)That’s not the only route to giving stocks, though. You can also buy stocks or other securities you don’t already own, then gift them. Here are two reasons you might consider gifting stocks this year.
That’s not the only route to giving stocks, though. You can also buy stocks or other securities you don’t already own, then gift them. Here are two reasons you might consider gifting stocks this year.1. To give to charity the wise way
1. To give to charity the wise wayAs long as the charity is set up for it, donating stock instead of cash can be a smart way to do good this holiday season.
As long as the charity is set up for it, donating stock instead of cash can be a smart way to do good this holiday season.For example, if you want to donate $1,000 to a charity but have to dip into your portfolio to raise the cash, you might pay capital gains taxes on that sale, netting you less than $1,000 to donate. But if you gave $1,000 in stock instead, there’s no tax consequence for you because you’re not realizing any of the gains, and the charity won’t pay taxes when it sells the stock since it's a tax-exempt entity. What’s more, you may be able to claim a fair market value charitable deduction on that donation. Want to pass these savings back to the charity? All the merrier.
For example, if you want to donate $1,000 to a charity but have to dip into your portfolio to raise the cash, you might pay capital gains taxes on that sale, netting you less than $1,000 to donate. But if you gave $1,000 in stock instead, there’s no tax consequence for you because you’re not realizing any of the gains, and the charity won’t pay taxes when it sells the stock since it's a tax-exempt entity. What’s more, you may be able to claim a fair market value charitable deduction on that donation. Want to pass these savings back to the charity? All the merrier.» Learn about more charitable giving tax strategies
» Learn » Learn about more charitable giving tax strategies2. As an early step toward passing down wealth
2. As an early step toward passing down wealthIf you’re thinking about your legacy, gifting stocks can be a valuable tool, as opposed to liquidating and paying capital gains taxes. As of 2025, the IRS allows you to gift up to $19,000 per year, per person — including stock. Married individuals who file jointly can gift up to $19,000 for a total of $38,000 to any single recipient.
If you’re thinking about your legacy, gifting stocks can be a valuable tool, as opposed to liquidating and paying capital gains taxes. As of 2025, the IRS allows you to gift up to $19,000 per year, per person — including stock. Married individuals who file jointly can gift up to $19,000 for a total of $38,000 to any single recipient.These limits aren't bound by familial or marital ties. So technically, you could give $19,000 in stock to each of your children, grandchildren, in-laws, friends and neighbors each year. Couples who file jointly may also be able to take advantage of gift splitting by filing Form 709, which allows them to utilize the doubled gift limit even if only one spouse is contributing.
These limits aren't bound by familial or marital ties. So technically, you could give $19,000 in stock to each of your children, grandchildren, in-laws, friends and neighbors each year. Couples who file jointly may also be able to take advantage of gift splitting by filing Form 709, which allows them to utilize the doubled gift limit even if only one spouse is contributing. Internal Revenue Service. Instructions for Form 709. Accessed Nov 8, 2024.» Learn more about gift taxes or estate planning
» Learn » Learn more about gift taxes or estate planningHow to gift stock in three steps
How to gift stock in three stepsYou can gift stock to kids through a custodial account, while you can gift stock to adults through a simple transfer from your brokerage account.
You can gift stock to kids through a custodial account, while you can gift stock to adults through a simple transfer from your brokerage account.1. Gifting stock to kids through a custodial account
1. Gifting stock to kids through a custodial accountOne of the simplest ways to get kids started in stocks is to set up a custodial brokerage account. You’ll be able to transfer existing shares of stock, mutual funds or other securities from your account to the custodial account, or buy specific securities directly within the custodial account. The child will take control of the account when they hit a certain age — typically 18 or 21, depending on the state.
One of the simplest ways to get kids started in stocks is to set up a custodial brokerage account . You’ll be able to transfer existing shares of stock, mutual funds or other securities from your account to the custodial account, or buy specific securities directly within the custodial account. The child will take control of the account when they hit a certain age — typically 18 or 21, depending on the state.Be wary of what the IRS calls the "kiddie tax," though. Once a child's unearned income hits $2,500, it can become taxable at the parent's tax rate.
Be wary of what the IRS calls the "kiddie tax," though. Once a child's unearned income hits $2,500, it can become taxable at the parent's tax rate . Internal Revenue Service. Topic No. 553: Tax on a Child's Investment and Other Unearned Income (Kiddie Tax). Accessed Nov 8, 2024. For this reason, it may be favorable to select stocks that pay out little to no capital gains or interest.2. Gifting stock through a Roth IRA
2. Gifting stock through a Roth IRAIf you're considering a custodial account for a child, it's also worth exploring Roth IRAs for kids. You can't transfer stocks as a gift like you can with a custodial account, and the child will need to have earned income to get started, but it's one way to avoid the kiddie tax issue (and the account grows tax-free).
If you're considering a custodial account for a child, it's also worth exploring Roth IRAs for kids . You can't transfer stocks as a gift like you can with a custodial account, and the child will need to have earned income to get started, but it's one way to avoid the kiddie tax issue (and the account grows tax-free).The more you earn, the more complex your taxes become. Learn the 10 traps to dodge.
GET THE FREE GUIDEon NerdWallet Wealth Partners' site. For informational purposes only. NerdWallet Wealth Partners does not provide tax or legal advice.
on NerdWallet Wealth Partners' site. For informational purposes only. NerdWallet Wealth Partners does not provide tax or legal advice.3. Gifting stock to friends and family
3. Gifting stock to friends and familyAll that’s required to transfer shares to an adult friend or family member is for the receiver to have a brokerage account. There are a few logistical hurdles though — you’ll need their account information and a few more personal details to actually perform the transfer. If they don’t have an account, you could help open and fund one for them as part of the gift.
All that’s required to transfer shares to an adult friend or family member is for the receiver to have a brokerage account . There are a few logistical hurdles though — you’ll need their account information and a few more personal details to actually perform the transfer. If they don’t have an account, you could help open and fund one for them as part of the gift.You can start the process online in your own brokerage account by opting to gift shares or securities you own; if you can’t find that option, contact your brokerage firm directly. If you want to gift a stock you don’t already own, you’ll have to purchase it in your account, then transfer it to the recipient.
You can start the process online in your own brokerage account by opting to gift shares or securities you own; if you can’t find that option, contact your brokerage firm directly. If you want to gift a stock you don’t already own, you’ll have to purchase it in your account, then transfer it to the recipient.» Check out our roundup of the best online brokerages for stock trading
» Check out our roundup » Check out our roundup of the best online brokerages for stock tradingHelpful resources
Helpful resources Best Investments: Where to Invest in 2026 Estate Planning Checklist: A 7-Step Guide to Getting Your Affairs in Order 3 Best Wealth Management Services Will vs. Trust: Which Do You Need? Differences and Cost More like this Investment Basics Investing Best Financial Advisors The best financial advisors in 2026 include Edelman, Modern Wealth Management, Vanguard, Ellevest, Facet and more. 2 By Tina Orem, Alana Benson 3 Ways to Search for a Financial Advisor Near You There are many ways to search for financial advisors near you, including asking for recommendations, using a matching service or tapping networks and associations. Alana Benson How to Choose a Financial Advisor in 5 Steps Vetting advisors takes time, but it’s worth it if you avoid paying for services you don’t need or wasting time with an advisor who isn’t a good fit. Taryn Phaneuf