can we gift stocks — complete guide

Can We Gift Stocks?

Asking "can we gift stocks" is common among investors planning gifts, estate transfers, or charitable contributions. This article explains whether and how you can give shares (including fractional holdings in some cases), the legal and tax implications in major jurisdictions, practical transfer methods, and step-by-step actions donors and recipients should take. You will learn which documents brokers require, how cost basis and holding periods are treated, and when to consult tax or legal professionals.

As of Jan 1, 2026, according to Yahoo Finance, many taxpayers are reviewing annual gifting and tax‑planning moves for the year; verify current exclusion amounts and deadlines with official guidance before acting.

Definition and basic concepts

When people ask "can we gift stocks" they mean transferring ownership of publicly traded shares (or fractional shares) from one person or entity to another without receiving cash in return. Gifting stocks can be done in kind (transferring the actual shares) or indirectly (selling the shares and giving the proceeds). Key concepts to understand:

• Cost basis: the original price the donor paid for the shares. For tax purposes, cost basis often carries over to the recipient for gifted shares in many countries (see Tax implications).
• Fair market value (FMV): the value of the shares on the date the gift is completed; FMV matters for valuation, donor reporting, and charitable deductions.
• In-kind transfer vs sale-and-gift: an in-kind transfer moves shares themselves. Selling first and gifting cash may change tax outcomes.
• Donation to charity vs gift to individual: donating to a qualified charity often has different tax benefits (e.g., potential FMV deduction and avoidance of capital gains tax on appreciated shares).

Why people gift stocks

Understanding why donors ask "can we gift stocks" helps frame the practical choices:

• Tax efficiency: gifting appreciated publicly traded shares to a qualified charity can provide a tax deduction for FMV and often avoids capital gains tax on the appreciation.
• Wealth transfer and estate planning: gifts remove assets from a donor’s estate and can use annual exclusions to transfer wealth tax-efficiently over time.
• Education and encouragement: parents or guardians gift shares to teach investing or seed a child’s portfolio via custodial accounts.
• Family tax planning: transferring appreciated shares to family members in lower tax brackets can reduce overall family tax on future gains (subject to attribution rules and downside risks).
• Portfolio rebalancing and liquidity management: gifting allows donors to reduce concentrated positions while keeping value in the family or philanthropic sphere.

Legal and regulatory overview

United States (federal rules)

In the U.S., when people ask "can we gift stocks" they should consider gift‑tax rules as part of the answer. Key federal points:

• Annual gift tax exclusion: donors may give up to the annual exclusion amount per recipient each year without filing a gift tax return. Exclusion amounts change periodically; confirm current-year figures before acting.
• Form 709 (Gift Tax Return): donors must file Form 709 to report gifts that exceed the annual exclusion per recipient, even if no tax is due due to lifetime exemptions.
• Lifetime exemption and estate tax: gifts in excess of annual exclusions reduce the donor’s lifetime estate/gift tax exemption; large or repeated gifts should be coordinated with estate planning.
• Spousal transfers: generally tax‑free between U.S. citizen spouses; special rules apply for nonresident or noncitizen spouses.

Note: annual exclusion, lifetime exemption, and reporting thresholds are adjusted over time — check IRS guidance for current amounts before deciding.

Canada and other jurisdictions (high-level)

• Canada: gifting publicly traded shares to another person is often treated as a deemed disposition at FMV for the donor, which can trigger capital gains tax on any appreciation. The recipient’s cost base typically becomes the FMV at the gift date. Charitable donations of publicly traded securities to registered charities can offer favorable tax treatment.
• Other countries: rules vary — some allow tax-free spousal transfers, others treat gifts as disposals with immediate tax consequences. Always consult local tax authority guidance or a tax advisor.

Securities regulatory and transfer rules

Brokerages and custodians have defined procedures for transferring securities. Transfers between brokers commonly use clearinghouse systems (e.g., DTC in the U.S.) and often require specific forms, beneficiary or recipient account details, and sometimes proof of identity. Brokerage policies may differ on fractional shares, transfer fees, and documentation.

Methods to gift stocks

When answering "can we gift stocks", the available methods depend on the donor’s and recipient’s accounts, the broker’s capabilities, and the jurisdiction. Common methods include:

In-kind transfer between brokerage accounts

This is the standard method for gifting whole shares. Steps and considerations:

• Recipient must have a brokerage account in their name (or an appropriate custodial account for minors).
• Donor contacts their broker to initiate an ACATS/DTC transfer or completes an internal transfer form if both parties use the same firm.
• Required details: recipient’s full legal name (matching their account), account number, brokerage name, and share identifiers (CUSIP/ticker and number of shares).
• Processing time: usually a few business days to a couple of weeks; external transfers between firms can take longer.
• Fees: some brokers charge outgoing transfer fees; check terms before initiating.

Buying shares as a gift and then transferring

A donor may purchase new shares and then transfer them in kind to the recipient. The transfer method is the same as an in-kind transfer; the key differences are timing and initial cost basis for the donor.

Custodial accounts for minors (UGMA / UTMA in U.S.)

• A gift to a minor is commonly made into a custodial account (UGMA or UTMA in the U.S.) where an adult manages the assets until the child reaches the state-specified age.
• Benefits: straightforward ownership transfer, low administrative cost, and flexibility in asset types.
• Considerations: the child is the legal owner once of age; income from investments may be subject to the “kiddie tax,” and donors may lose control later.

Gifting through a trust or other estate vehicles

• Revocable trusts: allow flexible control during the donor’s life, but transfers into a revocable trust may not remove the asset from estate tax calculations.
• Irrevocable trusts: can transfer ownership and potentially remove assets from the donor’s estate; they can be complex and may trigger immediate tax events or limit future access.
• Trusts are useful when timing, control, or protection from creditors is a concern.

Stock gifting platforms and gift cards / certificates

Third-party services and apps may issue stock gift cards, e-gifts, or facilitate transfers of fractional shares. Availability varies by provider and jurisdiction. If using an app or platform, verify custody arrangements, transferability, fees, and whether the recipient can move the shares to a standard brokerage.

When recommending services for custody or wallets, prioritize Bitget Wallet for Web3 custody needs and Bitget for exchange custody where applicable.

Physical stock certificates

Physical certificates are rare but still exist. To transfer, certificates must usually be endorsed by the donor and submitted to the issuing transfer agent or broker. Many firms require a medallion signature guarantee to protect against fraud.

Fractional shares and ETFs

Not all brokers permit the transfer of fractional shares. If fractional positions are involved, the broker may require the donor to sell the fraction and transfer cash instead. ETFs and whole-share positions are generally easier to transfer in kind.

Tax implications (donor and recipient)

Addressing "can we gift stocks" requires clear tax understanding. Below are major tax rules and how they typically affect both parties.

Cost basis and holding period carryover

In the U.S. and several other jurisdictions, when you gift appreciated shares to another person, the recipient usually inherits the donor’s cost basis and holding period for capital gains purposes. That means:

• Recipient’s cost basis = donor’s original cost basis (subject to some anti‑avoidance rules).
• Recipient’s holding period includes the donor’s holding period, which affects whether future gains are short‑ or long‑term.

These carryovers can have important tax consequences when the recipient later sells the shares.

Gift tax reporting and exclusions (U.S. focus)

• Annual gift tax exclusion: donors may exclude a set amount per recipient per year from gift tax. Exclusion amounts change over time; for planning, confirm the current year's exclusion.
• Reporting: gifts exceeding the annual exclusion per recipient generally require filing Form 709, even if no gift tax is due because of the available lifetime exemption.
• Lifetime exemption: gifts in excess of annual exclusions reduce the donor’s lifetime estate and gift tax exemption.

Example: If you transfer shares worth more than the annual exclusion to a single recipient in one year, you likely must file Form 709 reporting the gift. Filing does not necessarily mean you owe tax — it records use of part of your lifetime exemption.

Charitable donations of appreciated stock

Donating appreciated publicly traded stock to a qualified charity is often tax‑efficient:

• Donor may be able to deduct the FMV of the donated shares if the donation meets charity and holding-period requirements.
• Capital gains tax on the appreciation can often be avoided entirely when donating long‑term appreciated securities directly to a public charity.

This method typically beats selling the shares and donating cash, which may leave capital gains tax unpaid.

Special tax rules (spouse, minors, nonresidents)

• Spousal transfers: U.S. citizen spouses can transfer property tax‑free between them; transfers to noncitizen spouses have different limits.
• Gifts to minors: attribution rules and the kiddie tax may apply to investment income earned in a minor’s account.
• Nonresidents: cross‑border gifts may trigger different tax treatments; nonresident donors or recipients should consult local tax rules.

Cross-border and country-specific issues

Because tax outcomes vary widely by country, the short answer to "can we gift stocks" is jurisdictionally dependent. Canada, for example, treats gifts as deemed dispositions at FMV for the donor; other countries have different treatments. Consult local tax counsel or the tax authority (e.g., Canada Revenue Agency or the IRS) for specific guidance.

Practical steps and documentation

A concise checklist answers the practical side of "can we gift stocks" — what to do and what to gather.

1. Confirm the recipient’s account: ensure the recipient has a brokerage or custodial account able to accept the gift (or open one on their behalf if appropriate).
2. Collect recipient information: legal name as registered, account number, tax ID (SSN/TIN) or required ID, and broker details.
3. Contact your broker: ask for their transfer of assets form (outgoing transfer form, DTC/ACATS instructions, or internal transfer form).
4. Complete required forms: donor signature, recipient account information, share identifiers (CUSIP/ticker and number of shares), and any medallion signature guarantee if required for certificates.
5. Choose cost-basis reporting: designate how cost basis will be reported to the IRS (carryover basis is typical for gifts).
6. Confirm processing times and fees: ask about transfer timelines, any outgoing fees, and whether fractional shares are transferable.
7. Document the gift for tax records: record the date of transfer, FMV on that date, number of shares, and supporting brokerage confirmations.
8. File Form 709 if necessary: if the gift exceeds the annual exclusion per recipient in the U.S., plan to file Form 709.

What brokers typically require

Commonly requested items include a signed transfer/transfer-of-assets form, recipient account details, share identifiers, and, for physical certificates, a medallion signature guarantee. Broker procedures vary; contact your broker early in the process.

Timing, valuation and accounting

Valuation for gifting is typically the FMV on the date the gift is completed — often the date the transfer settles in the recipient’s account. Timing matters:

• If a transfer is initiated on Date A but settles on Date B, valuation can depend on the broker’s effective transfer date — confirm which date applies.
• Dividends or corporate actions occurring between initiation and completion may be credited to the party who legally owns the shares on the record date.
• Keep detailed records of confirmation statements and trade/transfer timestamps for both donor and recipient.

Costs, restrictions and operational issues

When evaluating "can we gift stocks", donors should consider:

• Transfer fees: some brokers charge outgoing transfer fees, ACATS fees, or flat fees for certificate processing.
• Fractional shares: many brokers do not transfer fractional shares in kind; you may need to liquidate fractions first.
• Minimums and policy restrictions: certain custodians restrict transfers by account type or impose minimums.
• Loss of step-up in basis: assets gifted during a donor’s life usually do not receive a step‑up in basis; inherited assets often do. For highly appreciated positions, gifting may reduce potential basis step‑up at death.

Pros and cons of gifting stocks

When answering "can we gift stocks", weigh the benefits and drawbacks.

Pros:

• Potential tax efficiency for charitable gifts of appreciated stock.
• Use of annual gift exclusion to transfer wealth gradually.
• Enables recipients (e.g., family members) to benefit from long‑term compounding.
• Teaching tool for financial literacy when gifting to younger relatives.

Cons:

• Loss of control once gifted; the recipient chooses how and when to sell.
• Possible immediate tax consequences for the donor in some jurisdictions (e.g., deemed disposition rules in Canada).
• Attribution rules and kiddie tax may limit tax‑planning effectiveness.
• Administrative friction, transfer fees, and limitations on fractional shares.

Special cases and planning strategies

Yearly gifting and using the annual exclusion

A common strategy for wealth transfer is to make repeated annual gifts up to the annual exclusion per recipient. This spreads transfers over time and can remove substantial value from a taxable estate without using lifetime exemption.

Gifting highly appreciated concentrated positions

Options to consider when deciding "can we gift stocks" for a concentrated position:

• Donate to charity: direct donation of appreciated stock can avoid capital gains and produce a charitable deduction (when eligible).
• Gift to family members in lower tax brackets: may reduce total family tax on future gains — but beware of attribution rules and loss of control.
• Use trusts or donor‑advised funds to manage timing and philanthropic goals.

Integrating gifts into estate planning

Gifts interact with wills, trusts, and estate tax planning. Large or complex gifts should be coordinated with estate counsel to ensure goals are met while managing tax and control consequences.

Frequently asked questions (short answers)

Q: Does the recipient need a brokerage account to receive gifted shares? A: Yes. Recipient generally needs a brokerage or custodial account that can accept transfers. For minors, open a UGMA/UTMA custodial account.

Q: Do I pay capital gains tax when I gift appreciated stock? A: Gifting itself typically does not trigger capital gains tax for the donor in the U.S., but cost basis generally carries over to the recipient. In Canada, a gift may be treated as a deemed disposition at FMV and can trigger capital gains for the donor. Always check local rules.

Q: Can we gift stocks in fractional shares? A: It depends on the brokers involved. Many brokers do not transfer fractional shares in kind; they may require selling the fraction and transferring cash. Some gifting platforms facilitate fractional transfers.

Q: How do I value the gift? A: Use the FMV on the date the gift is completed (the transfer or settlement date as defined by the custodian). Keep broker confirmations showing the valuation date.

Q: Is gifting crypto the same as gifting stocks? A: No. Crypto has different custody mechanics, transfer mechanics, and tax treatments. For crypto gifting, consult separate guidance and consider Bitget Wallet for custody needs.

Q: Can I gift stocks to my spouse? A: Transfers between U.S. citizen spouses are generally tax‑free for gift tax purposes, but special rules apply for noncitizen spouses.

When to consult a professional

Consult a tax advisor, estate attorney, or your broker when:

• Gifts are large, complex, or cross‑border.
• Trusts or irrevocable vehicles are involved.
• You need precise tax calculations or want to coordinate gifts with estate plans.
• You are unsure about filing requirements like Form 709.

References and further reading

Sources used in compiling this guide (seek the original pages or official guidance for current details):

• IRS guidance on gift tax and Form 709 (U.S. federal rules)
• Experian: Can You Give Stock as a Gift?
• NerdWallet: How to Give Stock as a Gift
• The Motley Fool: How to Gift Stock
• SoFi: How to Gift a Stock
• Vanguard: How to gift stock
• Investopedia: How to Give Stock as a Gift
• Finder and Canada Revenue Agency (CRA): Canadian rules on gifting securities
• Virtus and other investment firm materials on donations and gifting procedures

Reporting note: As of Jan 1, 2026, according to Yahoo Finance, many taxpayers are revisiting annual gifting and tax moves; confirm current annual exclusion amounts and filing deadlines before acting.

Notes and cautions

• Rules, exclusion amounts, and brokerage policies change over time. Verify current figures with official sources before making gifts.
• This guide focuses on publicly traded stocks and broadly public equities. Crypto and other asset classes have distinct mechanics and tax treatments.
• The content is informational and not personalized tax or legal advice. For individualized planning, consult a licensed tax advisor or attorney.

Next steps and Bitget notes

If you plan to gift stock and are evaluating custody or transfer options, consider the following actions:

• Confirm recipient account readiness (or open a custodial account if gifting to a minor).
• Contact your broker early to understand transfer procedures and fees.
• For digital asset gifting or custody needs, explore Bitget Wallet for secure custody and Bitget exchange solutions for account services where applicable.

To explore custody or transfer tools and how they fit into gifting and broader financial plans, reach out to your broker or a licensed advisor — and check Bitget resources for wallet and custody options.

Further practical help: document each gift, retain broker confirmations, and keep a copy of any Form 709 filings. These records will be essential for future tax reporting and for the recipient’s basis tracking.