Should you gift stocks to family members?

Passing Down Wealth Gifting stocks to family members can be a better way to transfer wealth than selling them and paying taxes. For 2021, up to $15,000 per year, per person, can be transferred through gifting of cash, stocks, or a combination. This means a couple can gift $30,000 to one individual, free of the gift tax.

How do you gift stocks?

Key Points • There are several ways to gift stocks, such as setting up a custodial account for kids, setting up a DRIP, virtual transfers, and physically handing over stock certificates. • Gifting stocks can benefit the giver as well as the receiver, as the giver can take a tax deduction while avoiding capital gains tax.

Are stock gifts taxed?

The gift tax, a federal tax applied to gifts, won't be an issue for most people. Donors aren't taxed on stock gifts unless they are worth more than $17,000 in calendar year 2023 ($18,000 in 2024) and exceed the lifetime gift tax exemption, which as of 2023 is set at $12.92 million ($13.61 million in 2024).