When people are listing the property and items they will give to loved ones during the Houston estate planning process, stocks and other securities often do not come to mind. A stock is a fractional share representing ownership of a small portion of a corporation. Stocks can be gifted as part of an estate plan and benefit the inheritor if they appreciate in value. Although stocks may seem complicated overall—and the process of gifting them even more so—estate planning attorneys can help to simplify the process. Below are common questions that individuals have about gifting stock and its inherent benefits.
How Do I Leave Someone Shares of Stock After My Death?
For individuals who want to leave loved ones their stock after their passing, they will incorporate this gift into their estate plan. Beyond including this as a part of a person’s will, there is another document that Texans should include in their estate plan. It is called a Transfer on Death Document. This document allows assets—like stocks—to be given to beneficiaries after the person’s death without having to go to court. A person creating a Transfer on Death designation names the beneficiary—the person receiving the stock—as well as which stock the beneficiary will receive and how many shares they will get, if the person is bequeathing the stock to more than one person.