Can you transfer stocks to someone? Complete Guide

Can you transfer stocks to someone?

Can you transfer stocks to someone? Yes — in the U.S. public markets it is generally possible to legally transfer ownership of equity securities (shares) from one person or account to another, subject to account type, company rules, and tax and regulatory requirements. This article explains what "can you transfer stocks to someone" means, how transfers commonly work, required documents and safeguards, tax implications, special cases, and practical steps you can start today.

This guide is written for beginners and includes actionable steps, typical timelines, and when to consult a broker, transfer agent, tax advisor, or estate attorney. Where relevant, we note how Bitget services (exchange custody and Bitget Wallet) can be involved in transferring digital securities-related positions and custodying assets for users.

Brief definition and scope

The phrase "can you transfer stocks to someone" refers to the legal transfer of ownership of equity securities — shares of publicly traded companies — from one individual or account to another in the U.S. markets. It covers several common forms of transfers:

• Brokerage-held shares transferred between brokerage accounts (electronic transfers via DTC/ACATS).
• Physical stock certificate re-registration or endorsement and remittance to a transfer agent.
• Re-registration within the same broker between accounts you control.
• Transfer-on-Death (TOD) designations that pass shares directly to named beneficiaries at death without probate.
• Transfers into custodial accounts (UGMA/UTMA) or trusts for minors or estate planning.

Excluded or specially governed cases: retirement accounts such as IRAs and 401(k)s (which follow plan and tax rules and generally cannot accept outright gifting of shares), restricted stock or RSUs subject to company policies and lockups, and certain foreign-held or cross-border holdings that raise regulatory or tax complications.

As of 2026-01-21, according to public guidance from the U.S. Securities and Exchange Commission (SEC), transfers of registered securities among brokerage accounts remain governed by transfer-agent and broker procedures designed to prevent fraud and ensure accurate ownership records.

Overview of stock transfers and gifts

People transfer stocks for many reasons. Common motives include gifting shares to family, estate planning to simplify transfer at death, transferring holdings between accounts you own, donating appreciated stock to charity, and consolidating accounts at one brokerage for easier management.

A key distinction is between selling shares and gifting cash versus transferring shares in-kind. When you sell and gift cash, the donor realizes any capital gain or loss and gives proceeds to the recipient. When you transfer shares in-kind (give the actual stock), ownership — along with cost basis and holding period rules — moves to the recipient under specific tax rules.

Legally, gifting shares is generally permissible. The transfer must follow broker and transfer-agent protocols; when properly documented, a share transfer is as valid as a cash gift. However, tax reporting, gift-tax thresholds, and special rules for certain account types or restricted securities can change the practical outcome.

Common transfer methods

Broker-to-broker electronic transfer (ACATS/DTC)

One of the most common methods for regular brokerage accounts is an electronic broker-to-broker transfer using the Depository Trust Company (DTC) and the Automated Customer Account Transfer Service (ACATS).

How it works:

• The recipient opens an account at the receiving broker (or confirms an existing account accepts incoming transfers).
• The recipient or donor initiates an ACATS transfer request with the receiving firm. The receiving broker submits the transfer order through ACATS to the delivering broker.
• Typical required information: account owner names as registered, account numbers, broker DTC number for the receiving firm (if requested), and a list of securities and quantities to transfer in-kind.
• Processing time: external ACATS transfers often take 3–7 business days, sometimes longer for retirement accounts or complex positions.

Use cases and notes: ACATS is efficient for whole shares and many common securities. Some brokers also support simplified in-system gifting tools for transfers between accounts at the same firm.

In-kind transfers within the same brokerage

Transferring shares between accounts you hold at the same firm is usually the fastest, simplest option. This includes moves between taxable accounts you own, or into a TOD registration within the same broker.

Process and timing:

• Request an internal transfer or account re-registration through your broker’s website or support team.
• Documentation is minimal when the account holder names match and sign-off is completed; transfers often complete in 1–2 business days.
• No ACATS or DTC movement is necessary when stays on the same broker’s books, reducing paperwork and risk.

Transfer of physical stock certificates

Physical stock certificates are less common but still used. To transfer a certificate, you typically must endorse it, obtain a signature guarantee, and send it to the company’s transfer agent or receiving broker.

Steps and risks:

• Confirm the certificate is properly endorsed or will be reissued in the recipient’s name.
• Many transfer agents require a Medallion signature guarantee to accept re-registration.
• Mail or courier certificates with tracking; lost certificates can create delays and may require a bond and indemnity process to reissue.
• If certificates are stamped “restricted,” additional company documentation or approvals may be required.

Transfer on Death (TOD) / Transfer on Death registration

A Transfer on Death (TOD) registration allows an account owner to name one or more beneficiaries who automatically receive the assets at the owner’s death, bypassing probate for those assets.

Key points:

• You must register the account with TOD designation at the brokerage or on the account title (for example: "John Doe, TOD Jane Doe").
• TOD only takes effect at death. Beneficiaries must submit a death certificate and follow receiving-firm procedures to re-register assets in their names.
• TOD is widely supported for brokerage accounts and offers a simple estate planning tool for many investors, but it does not change tax consequences at transfer.

Custodial accounts, trusts, and gifts to minors

Gifts to minors are commonly structured using custodial accounts (UGMA/UTMA) or by transferring assets into a trust.

UGMA/UTMA custodial accounts:

• An adult custodian holds the assets for a named minor beneficiary.
• Transfers into UGMA/UTMA accounts are irrevocable gifts to the minor; the custodian manages the assets until the statutory age (state law determines the age, often 18 or 21).
• Taxation: income from custodial accounts may be subject to the "kiddie tax" rules.

Trusts and other structures:

• Trusts provide detailed control over distributions and timing.
• Transfers to or from trusts require trust documents, trustee signatories, and sometimes payout schedules aligned with the trust terms.

Charitable donations of stock

Donating appreciated stock to a qualified charity can provide tax benefits for donors. Instead of selling the stock and donating cash — which triggers capital gains — donors often transfer shares directly to a charity to potentially qualify for a charitable deduction and avoid capital gains tax on the appreciation.

Typical process:

• Confirm the charity accepts stock donations and obtain instructions (brokerage details or transfer-agent information).
• Transfer shares in-kind to the charity’s brokerage account, being careful to confirm timing and valuation date for the deduction.
• Secure a written acknowledgement from the charity for tax reporting.

Donors should discuss specifics with a tax advisor to confirm deduction limits and substantiation requirements.

Practical steps to initiate a transfer

If you’ve decided you want to transfer shares, here is a practical checklist to start the process.

1. Decide what type of transfer: in-kind gift, sale and gift of proceeds, TOD registration, custodial transfer, or donation.
2. Contact your broker’s customer service or secure portal to request the correct transfer or gift form.
3. Complete transfer/gift authorization forms and provide recipient details: full legal name, Social Security Number (SSN) or Tax ID (TIN), account number at the receiving firm (if applicable), and the receiving firm’s DTC number if the transfer is external.
4. For physical certificates, confirm endorsement and obtain any required signature guarantees before mailing.
5. Secure a Medallion signature guarantee if requested by the receiving broker or transfer agent.
6. Track the transfer through the delivering and receiving brokers; keep copies of all forms, confirmations, and correspondence.
7. Verify settlement and confirm the recipient’s account shows the correct shares and cost-basis treatment.

If you plan to use Bitget custody or move holdings related to tokenized securities or synthetic equity products available on Bitget, contact Bitget support for firm-specific routing, DTC equivalents for tokenized instruments, and Bitget Wallet custody steps.

Required documentation and security procedures

Signature guarantee (Medallion program)

One of the most common security requirements for re-registering or transferring securities is a Medallion signature guarantee. Transfer agents and brokers use the Medallion program to verify signers and prevent forgery.

What it is and why it matters:

• A Medallion signature guarantee is a specialized stamp provided by participating financial institutions (banks, credit unions, and broker-dealers) that certifies the authenticity of a signature on security transfer documents.
• Transfer agents typically require a Medallion guarantee for high-value transfers, certificate re-issuance, or any change of registered ownership.
• Not all institutions provide Medallion guarantees; your local bank branch or broker may offer it; call ahead to confirm requirements and appointment needs.

Transfer agent and corporate records

When a company’s transfer agent is involved, they may request documentation beyond broker forms:

• Death certificate and probate or small estate documents for transfers after death.
• Letters testamentary or letters of administration for estate transfers.
• Trust documents and trustee information for transfers into or out of trusts.
• Stop-transfer orders, lost-certificate affidavits, or surety bonds when certificates are lost or stolen.

Always check the transfer agent’s published instructions and follow their document checklist to avoid delays.

Tax and regulatory implications

Gift tax and annual exclusion

Gifting stock may trigger gift-tax reporting depending on the value of the gift. Key points:

• The U.S. tax code provides an annual gift tax exclusion amount (indexed for inflation). Gifts below the annual exclusion typically do not require the donor to file a gift-tax return.
• If a gift’s value exceeds the annual exclusion, the donor must file IRS Form 709 (United States Gift (and Generation-Skipping Transfer) Tax Return). Filing Form 709 does not necessarily mean tax is due; it starts counting against the donor’s lifetime exclusion.
• Gifts between U.S. citizen spouses are usually unlimited, but gifts to nonresident or noncitizen spouses may have special limits.

Because exclusion amounts and rules change, consult a tax advisor and verify the current annual exclusion amount for the year of transfer.

Cost basis and capital gains consequences

When you ask "can you transfer stocks to someone," understanding cost basis is essential. In most gifts of stock to another person, the recipient takes the donor’s cost basis and holding period:

• Cost basis carryover: The recipient typically inherits the donor’s original cost basis (the price the donor paid for the shares) and the holding period. When the recipient later sells the shares, capital gain or loss is computed using the donor’s basis and holding period.
• Special stepped-up basis rules apply for transfers at death (not for lifetime gifts). When shares transfer by inheritance, the cost basis generally steps up (or down) to fair market value at the decedent’s date of death.
• Donating appreciated shares to a qualified charity may allow the donor to avoid capital gains tax and take a charitable deduction, subject to limits.

Kiddie tax, financial aid, and other considerations

Transferring shares to minors can trigger special rules:

• Kiddie tax: Investment income above certain thresholds in a child’s custodial account may be taxed at the parents’ marginal rate.
• Financial aid impact: Holdings in a custodial account or in a student’s name can affect expected family contribution (EFC) calculations for college financial aid.
• Household planning: Large gifts can affect means-tested benefits or estate planning goals. Always evaluate secondary effects before large transfers.

Restrictions, exceptions, and special cases

Retirement accounts (IRAs, 401(k)s)

Retirement accounts are subject to different rules. You generally cannot transfer IRA or 401(k) assets as gifts in-kind to another person outside of plan or tax-approved rollovers.

• IRA distributions: Taking a distribution and gifting cash is possible but may produce taxable income and penalties if under age limits.
• Plan rules: Employer-sponsored plans (401(k), 403(b)) have plan-specific rules for distributions and rollovers; consult plan administrators before attempting transfers.

If you intend to move retirement assets, consult the plan documents and a tax professional about permitted rollovers and tax consequences.

Restricted stock, RSUs, and insider holdings

Restricted securities, such as shares issued under employee stock plans or subject to lock-up agreements, often have transfer limitations:

• Company-imposed restrictions: An issuer may require compliance with securities law exemptions, company policy approvals, or mandatory holding periods before transfer.
• RSUs and performance awards: Typically need to vest and may be subject to brokerage settlement or company approval before re-registration.
• Insider trading and compliance: Transfers by corporate insiders must comply with SEC rules and company insider-trading policies; pre-clearance and company notification may be required.

Fractional shares and modern brokerage limitations

Fractional shares are common at retail brokerages. Availability to transfer fractional shares depends on the receiving firm:

• Some brokerages allow gifting or transferring fractional shares internally but may not support ACATS transfers of fractions.
• Fractional positions may be converted to cash or rounded to whole shares before transfer.
• Verify with both delivering and receiving brokers how they handle fractional share transfers.

International recipients and cross-border issues

Transferring shares to non-U.S. recipients or foreign brokerage accounts raises additional issues:

• Tax reporting: Cross-border gifts can create tax withholding or reporting obligations depending on residency and tax treaties.
• Brokerage acceptance: Not all U.S. brokers accept transfers to foreign brokerage firms, and foreign brokers may not accept DTC/ACATS inbound transfers in the same way U.S. firms do.
• Currency and regulatory differences: Non-U.S. recipients may face forced sales, conversion issues, or regulatory filings.

When dealing with international transfers, consult the delivering and receiving brokers plus a cross-border tax advisor.

Timing, costs, and processing expectations

Processing times and fees vary by method and broker:

• Internal transfers: 1–2 business days typically.
• ACATS external transfers: commonly 3–7 business days, possibly longer for retirement accounts or complex positions.
• Physical certificates: weeks, depending on mailing and transfer agent processing.
• TOD transfers at death: depend on death certificate processing and transfer agent timelines; expect multiple weeks.

Fees:

• Some brokers charge outgoing transfer fees or per-position fees for ACATS outgoing transfers.
• Recipient brokers occasionally charge incoming fees or place restrictions on incoming out-of-network transfers.
• Transfer agent fees may apply for certificate re-issuance or lost-certificate replacements.

Always ask both firms about expected fees before initiating a transfer and obtain written confirmation of timelines.

Risks, common pitfalls and fraud prevention

Common issues people encounter when transferring stocks include:

• Incorrect account information: A wrong account number, misspelled name, or missing SSN/TIN can cause rejection.
• Missing signature guarantees: Transfer agents often reject unsigned or non-guaranteed documents.
• Scams and coercion: Never accept unsolicited requests to transfer shares. Verify beneficiary identity, and beware of social-engineering attempts.
• Ambiguous instructions for fractional shares or special securities: Confirm handling before initiating the transfer.

Best practices for fraud prevention and success:

• Verify recipient account details directly with the recipient and with the receiving broker.
• Use tracked mail and obtain transfer confirmations.
• Retain copies of forms, confirmations, and emails.
• Secure Medallion guarantees at an authorized institution to satisfy transfer-agent requirements.

Practical examples and use cases

1. Gifting shares to a child via custodial account: Parent transfers 200 shares of a dividend-paying stock into a UGMA account titled in the child’s name with the parent as custodian. The transfer requires the minor’s SSN and custodial-account paperwork; income may be subject to the kiddie tax.

2. Moving shares to a family member at a different broker: Donor submits an ACATS transfer to the receiving broker with recipient’s account number and signs the delivering broker’s outgoing transfer form. Transfer completes in 3–7 business days.

3. Donating appreciated stock to charity: Donor transfers 100 shares in-kind to the charity’s brokerage account per the charity’s transfer instructions and secures a donation receipt for tax purposes.

4. Using TOD for estate planning: Account owner registers a brokerage account as TOD to named beneficiaries. At death, beneficiaries present a certified death certificate and re-register holdings without probate.

How to get help and professional advice

• Contact your broker’s customer service or transfer desk for firm-specific forms and procedures. If you custody assets with Bitget or use Bitget Wallet for tokenized positions, consult Bitget support for transfer routing and custody details.
• For tax questions (gift tax filing, cost basis, charitable deduction rules), consult a qualified tax advisor.
• For estate planning or trust transfers, consult an estate attorney to align transfers with your broader plan.

Frequently asked questions (FAQ)

Q: Can I gift shares anonymously?

A: Generally no. Transfers require documentation with legal names and tax IDs. Charities sometimes offer anonymity options for donors, but most broker and transfer-agent records will show donor and recipient information for tax purposes.

Q: Do I pay capital gains when I gift stock?

A: Gifting stock does not create a capital gain for the donor at the moment of transfer. The donor may be required to file a gift-tax return if the gift exceeds the annual exclusion. When the recipient later sells the shares, capital gains are computed using the donor’s original cost basis (carryover basis).

Q: Can I transfer shares to someone who doesn't have a brokerage account?

A: Typically no. Most transfers require a receiving brokerage account or an account at a transfer agent for physical re-registration. If the recipient lacks an account, you can open a custodial account, open an account for them, or sell the shares and gift cash proceeds.

Q: What happens if I gift more than the annual exclusion?

A: If a lifetime gift exceeds the annual exclusion amount, the donor must file IRS Form 709 to report the gift. The excess counts against the donor’s lifetime estate and gift tax exemption; actual tax may not be due until lifetime exemptions are exceeded.

References and further reading

Sources to consult for detailed firm-specific procedures and official guidance include broker help centers and government resources such as the SEC. Examples of authoritative guides you can search for include:

• Fidelity — How to Gift Shares Into or Out of Fidelity
• Vanguard — How to Gift Stock
• Investopedia — How to Give Stock as a Gift
• U.S. SEC / Investor.gov — Transferring Assets
• Charles Schwab, SoFi, The Motley Fool, NerdWallet guides on gifting stock

These publications explain forms, broker requirements, and tax treatments in practical detail. When using Bitget services, consult Bitget support pages and Bitget Wallet guidance for firm-specific custody and tokenized securities transfer processes.

Final notes and next steps

If you still wonder "can you transfer stocks to someone," the short practical answer is yes — but the correct method depends on account type, the receiving party, tax consequences, and whether securities are restricted or certificated. Begin by contacting your broker or Bitget support, gather required recipient information and forms, and consult a tax or estate professional for significant transfers.

To explore custody and transfer support for digital tokens or tokenized-equity products, check Bitget’s custody options and Bitget Wallet features. If you’re ready to act, contact your broker or Bitget today to request the transfer form and confirm timelines.

Sources cited

• As of 2026-01-21, public guidance and investor resources from the U.S. Securities and Exchange Commission (SEC) describe transfer-agent roles and broker procedures for transferring registered securities.
• Firm help centers (Fidelity, Vanguard) and financial education sites (Investopedia, NerdWallet) provide step-by-step procedures referenced above.

(For firm-specific instructions, contact the delivering broker or transfer agent directly; brokerage procedures and fees vary.)