can you transfer stocks to someone else? Guide

Can You Transfer Stocks to Someone Else? — A Practical Guide

Short definition and scope: This article explains whether and how can you transfer stocks to someone else in common situations. It covers electronic broker-to-broker transfers, internal transfers within the same brokerage, transfers using physical stock certificates, transfers to minors via custodial accounts (UGMA/UTMA), transfer-on-death (TOD) and beneficiary designations, gifting through apps or buying in the recipient’s name, and transfers to charities or spouses. Processes, timing, documentation, tax rules and legal implications vary by jurisdiction and by the broker or platform used. Where relevant, this guide highlights Bitget platform and Bitget Wallet options for securely holding and gifting assets.

Overview

People transfer stocks for many reasons: gifting to family or friends, estate planning, tax optimization, funding education for minors, charitable giving, or reorganizing holdings across accounts. A core distinction to understand is whether you are selling shares and transferring cash, or gifting/transferring the actual shares. The phrase "can you transfer stocks to someone else" captures both possibilities, but this guide focuses on transferring share ownership (gifts and transfers), not selling and remitting proceeds.

Transferring shares (giving ownership) has different tax and timing consequences than selling shares and sending cash. Gifting shares typically carries gift-tax and cost-basis carryover rules; selling shares can trigger capital gains or losses immediately for the seller.

Common Reasons to Transfer Stocks

• Gifting to family/friends: to help with savings, education, or financial support.
• Transfers to minors (custodial accounts): adults can transfer or purchase shares for a child via UGMA/UTMA.
• Charitable donations: donating appreciated securities to qualified charities can be tax-efficient.
• Transfers on death / estate planning: TOD or beneficiary designations pass assets without full probate.
• Intra-family wealth planning: spreading ownership among family members to manage estate tax exposure.

Methods of Transferring Stocks

There are several practical methods. Which one you use depends on whether the recipient has a brokerage account, whether shares are in certificate form, whether the recipient is a minor, and whether you want the transfer to avoid probate.

Broker-to-Broker Electronic Transfers (ACATS/DTC)

When both giver and recipient have brokerage accounts, the most common method is an electronic transfer. In the U.S., transfers between brokerage firms usually happen through the Depository Trust Company (DTC) using the Automated Customer Account Transfer Service (ACATS). Key points:

• Use when both parties have accounts at brokerages that support electronic transfers.
• The giver initiates the transfer by submitting the receiving account details to their broker (or sometimes the recipient’s broker can initiate a pull).
• Typical information required: recipient’s full name as registered at the receiving broker, receiving account number, receiving firm’s DTC/ACATS instructions or receiving firm code, and security identifiers (ticker/CUSIP) for the shares being moved.
• Processing times: inter-firm ACATS transfers typically take 3–6 business days when there are no complications, but times vary by firm and by whether the shares are in a margin, retirement, or restricted status.
• Some brokers allow partial-share transfers; others do not. Fractional-share transfers can be limited.

This is a standard choice when you want to transfer ownership of specific share lots without selling.

Internal Transfers Within the Same Brokerage

If giver and recipient have accounts at the same brokerage, the process is often simpler and faster:

• Internal transfers can often be completed online via account-transfer or gift forms inside the platform.
• The broker may process the transfer immediately or within 1–3 business days.
• Many firms allow gifting between accounts of different registrations (individual to joint, individual to custodial), subject to identity checks and account eligibility.

Because internal transfers stay within a single custody system, there are fewer paperwork and verification steps than ACATS transfers.

Physical Stock Certificates and Certificate Transfers

Physical certificates are now relatively rare, but transferring them still happens. Steps typically include:

• Endorsement: sign the back of the certificate exactly as the registered owner appears.
• Medallion/signature guarantee: required for many transfer agents to ensure the signature is valid and to protect against forgery.
• Transfer agent involvement: often you must mail the endorsed certificate and supporting transfer documents to the company’s transfer agent for re-registration in the recipient’s name.
• Time and cost: certificate transfers can take several weeks and may involve fees charged by the transfer agent.

Because most shares are held electronically (book-entry), certificate transfers are declining.

Custodial Accounts for Minors (UGMA/UTMA)

Adults who want to transfer shares to a minor commonly use custodial accounts (UGMA—Uniform Gifts to Minors Act—or UTMA—Uniform Transfers to Minors Act):

• An adult opens a custodial account (the custodian) on behalf of the minor (the beneficiary) at a brokerage or platform (Bitget Wallet can hold crypto and some tokenized assets; for traditional equities use a licensed broker supporting custodial accounts).
• The custodian controls the account until the beneficiary reaches the age set by state law (commonly 18 or 21; UTMA sometimes allows older ages up to 25 in some states).
• Transfers into UGMA/UTMA are irrevocable gifts; ownership legally belongs to the minor though controlled by the custodian.
• Tax considerations: minors may be subject to the kiddie tax rules; small amounts of unearned income may be taxed at the child’s rate up to certain thresholds.

This is the usual path to transfer stocks to someone else when the someone else is a minor.

Transfer-on-Death (TOD) and Beneficiary Designations

Transfer-on-Death (TOD) registrations and beneficiary designations allow assets to pass outside traditional probate to a named beneficiary at the owner’s death:

• Many brokerages support TOD registration for brokerage accounts and specific securities.
• To set up TOD, update the account registration with the broker and name one or more beneficiaries.
• On the owner's death, the beneficiary executes paperwork to claim the assets; the process is typically faster and simpler than probate.
• Not all account types (e.g., certain retirement accounts) permit TOD; rules vary by firm and jurisdiction.

TOD is a useful estate-planning tool if you want to ensure specific people receive shares without creating a trust.

Buying in Recipient’s Name or Using Gift Platforms/Apps

Alternatives to transferring existing shares include purchasing shares directly in the recipient’s account or using gifting features on platforms:

• Buy shares in the recipient’s brokerage account directly—this avoids transfer paperwork but requires the recipient to have an account.
• Gift platforms/apps: some apps allow you to send stock gifts or fractional shares as presents. These are often easier for small-value gifts, but may impose limits on transferability or holding.
• Pros/cons: buying new shares in the recipient’s account sets a fresh cost basis (the recipient’s basis is the purchase price). Transferring existing shares transfers your original cost basis and holding period (important for future capital gains calculations).

When deciding “can you transfer stocks to someone else,” consider whether you prefer preserving cost basis (transfer) or setting a new basis (buying in recipient’s name).

Required Documentation and Process Steps

Most transfers require clear identification of both parties, account details, and sometimes wet signatures or guarantees.

Information the Giver Needs to Provide

• Recipient’s full legal name as registered at the receiving firm.
• Receiving account number and receiving brokerage name (or transfer agent instructions for certificate transfers).
• Recipient Social Security number or Tax Identification Number (TIN) in many jurisdictions.
• Account registration type (individual, joint, custodial, trust) and any beneficiary info.
• Security identifiers (ticker symbol and CUSIP) and number of shares.
• For transfers to charities, the charity’s EIN and appropriate charity registration details.

Forms, Signature Guarantees, and Transfer Agents

• Many inter-firm transfers require signed transfer forms; some transfers of certificates require medallion signature guarantees.
• Medallion guarantees are available through banks and brokerages and protect against fraudulent transfers.
• Transfer agents handle re-registration for certificate transfers and can provide guidance on required documents.

Broker/Platform-Specific Procedures

• Each broker has specific gift/transfer forms and online procedures. For example, some brokers have digital gifting tools, while others require mailed forms with original signatures.
• Contact your broker to request their official transfer/gift instructions and forms.
• If you plan to use Bitget Wallet or Bitget platform services for tokenized or token-forwarded assets, review Bitget’s account and KYC procedures before initiating a transfer.

Timing and Costs

• Intra-firm transfers: often 1–3 business days.
• Inter-firm (ACATS): typically 3–6 business days, but can be longer if there are issues.
• Certificate transfers: can take weeks and may include transfer agent fees.
• Broker fees: some brokers charge nominal fees for outgoing ACATS transfers or for processing certificate transfers; some waive fees for internal gifts.
• Restrictions and delays: transfers can be restricted by settlement windows (recently purchased shares may be subject to trade settlement rules), trade holds, position flags, or if securities are restricted or in a margin account. International transfers may incur additional compliance checks.

Plan for possible delays and check both firms’ policies before initiating a transfer.

Tax and Reporting Implications

Questions like "can you transfer stocks to someone else" inevitably raise tax questions. Tax treatment varies by jurisdiction. Below are common U.S.-focused principles; always confirm for your jurisdiction.

Gift Tax and Annual Exclusion

• Gifts may be subject to gift tax rules. In the U.S., there is an annual exclusion amount per recipient that can be gifted without filing a federal gift tax return (Form 709). The annual exclusion amount changes over time; for example, in recent years it rose from $15,000 to around $17,000 per recipient in 2023. If you exceed the annual exclusion for a single recipient in a tax year, you may need to file Form 709 although no tax may be due until lifetime exemptions are exhausted.
• As tax rules change, check the current annual exclusion and lifetime exclusion with the tax authority (for U.S. taxpayers, the IRS).

As of 2023, the IRS reported the annual gift tax exclusion at $17,000 per recipient for that tax year. (截至 2023-12-31，据 IRS 报道，该年度的年度赠与免税额为 17,000 美元。)

Cost Basis and Capital Gains for the Recipient

• When you transfer (gift) shares, the recipient generally inherits your cost basis and holding period (carryover basis). That means if the recipient later sells the shares, capital gain or loss is calculated using your original purchase price and holding period, which affects whether gain is short-term or long-term.
• There are exceptions for certain low-basis gifts where special rules can apply to determine loss recognition.
• If you purchase shares directly in the recipient’s name, the recipient’s cost basis is the purchase price.

Understanding whether the recipient inherits your basis is essential when you answer “can you transfer stocks to someone else” with tax planning in mind.

Special Cases: Spouses, Nonresident Recipients, and Charities

• Spouses: many jurisdictions have spousal transfer exemptions. In the U.S., transfers between spouses who are U.S. persons are generally not subject to gift tax rules the same way as transfers to non-spouses.
• Nonresident recipients: gifting to non-U.S. persons can introduce withholding, reporting, or different tax treatments. Cross-border transfers may involve extra compliance steps and different tax consequences.
• Charities: donating appreciated securities to qualified charities can produce tax benefits—donors often receive a charitable deduction for the fair market value and avoid capital gains tax that would have arisen on a sale. Confirm charity qualification and applicable rules before donating.

Considerations and Risks

• Market movement: share prices can move between transfer initiation and completion. If you intend a gift to happen immediately at a given value, be aware of this timing risk.
• Fractional shares: not all brokers support transferring fractional shares. Fractional positions may be cashed out or rounded.
• Fees: outgoing transfer fees, medallion guarantee fees, or transfer-agent fees can apply.
• Loss of control: gifting is usually irrevocable. Once transferred, you cannot unilaterally reclaim shares unless the recipient agrees to transfer them back.
• Relationship and legal implications: transfers to family members, especially those involving significant amounts, should be documented and discussed to avoid disputes later.

Legal, Compliance and Identity Requirements

• AML/KYC: brokers and transfer agents must follow anti-money-laundering (AML) and know-your-customer (KYC) rules. Expect identity verification for both giver and recipient.
• Incomplete information: brokers may refuse or freeze transfers if beneficiary or recipient info is missing or mismatched.
• Minors and trusts: transfers involving minors or trusts require appropriate documentation (trust agreements, custodian certification, etc.).

Estate Planning and Long-Term Strategies

Transfers are often part of broader estate planning. Common tools include:

• Trusts: placing securities into revocable or irrevocable trusts for future distribution or estate-tax planning.
• TOD/Payable-on-death registrations: efficient for transferring certain brokerage assets.
• Gifting strategies: annual exclusion gifting over years to transfer wealth gradually and reduce estate-tax exposure.

Talk to an estate attorney when transfers intersect with significant estate planning concerns. Bitget’s educational resources can help you understand custody options, and Bitget Wallet can be part of a diversified custody and transfer strategy for digital assets.

Step-by-Step Checklist to Transfer Stocks as a Gift

1. Confirm recipient’s account and eligibility: verify the recipient has an appropriate brokerage account and note the account number and exact account registration.
2. Contact your broker: request their gift or transfer instructions and any required forms.
3. Gather recipient info: full legal name, SSN/TIN (if required), receiving firm name and account number, and beneficiary or custodial details if applicable.
4. Verify share details: ticker, CUSIP (if requested), number of shares, and whether fractional shares are involved.
5. Obtain signature guarantees if needed: arrange a medallion signature guarantee or notary as required by the firm or transfer agent.
6. Submit transfer paperwork: deliver forms to your broker (online upload or mail, per broker instructions).
7. Monitor the transfer: check account statements and confirmations from both giver’s and recipient’s firms.
8. Retain records: keep copies of transfer forms, confirmations, and any tax-related documents (e.g., donor’s records for Form 709 if filed).
9. Communicate with recipient: ensure the recipient knows the transfer timing and any tax basis information.
10. If donating to a charity: obtain a written acknowledgement and date of transfer for tax records.

Frequently Asked Questions (FAQ)

Q: Can I gift fractional shares?
A: It depends on the broker. Some brokers allow transferring fractional shares internally; many inter-firm transfers do not support fractional shares, which may be rounded or cash-settled.

Q: Do I pay tax when gifting stocks?
A: Gifting itself generally does not trigger income tax for the donor or recipient, but gift-tax rules may require reporting if gifts exceed the annual exclusion. Donors should check whether Form 709 must be filed. Capital gains taxes are typically triggered when the recipient later sells the shares.

Q: Can I gift through Robinhood or Cash App?
A: This guide avoids naming specific non-recommended platforms. Many retail investing apps have gifting features; confirm whether the app supports direct transfers of existing shares or only in-app gifting and whether shares are transferable out of the platform.

Q: What happens to dividends after I transfer shares?
A: Once ownership transfers, future dividends are paid to the new owner. For transfers around dividend record dates, timing matters: the owner of record on the record date receives the dividend.

Q: How long does a transfer take?
A: Internal transfers: 1–3 business days. Inter-firm ACATS: usually 3–6 business days. Certificate transfers: may take multiple weeks.

References and Further Reading

• Official IRS materials on gift and estate taxes (search IRS publications and Form 709 instructions).
• Broker help pages: for example, many firms publish “How to Gift Shares” and transfer instructions—contact your broker for their official forms.
• SEC guidance on transfer agents and securities registration.
• Consumer finance guides from reputable personal-finance outlets for practical tips on gifting securities.
• Bitget documentation and Bitget Wallet user guides for custody, account setup and identity verification procedures.

(截至 2023-12-31，据 IRS 发布的指导文件，年度赠与免税额在近几年有所上升；赠与及遗产规则会随税法年度调整，务必以税务机关最新公布为准。)

When to Seek Professional Advice

Seek a tax advisor, estate attorney, or financial advisor when:

• Transfers involve significant value or many recipients.
• You’re planning estate-tax-sensitive transfers or establishing trusts.
• Recipients are nonresidents or transfers cross international borders.
• You need specific tax treatment guidance (spousal transfers, basis issues, charity gifts).

Professional advice reduces the risk of unexpected tax filings, missed reporting obligations, or legal complications.

Practical Notes on Bitget and Wallet Options

• If you hold tokenized securities, digital assets, or are exploring tokenized forms of equity on regulated platforms, Bitget Wallet provides custody for supported token assets. Check Bitget’s KYC requirements and supported asset types before initiating transfers of tokenized positions.
• For traditional equities, use licensed brokerages that support ACATS, TOD, custodial accounts, and transfer-agent interactions. If you manage multiple asset types (traditional equities and digital assets), coordinate custody and documentation across platforms.

Considerations for Cross-Border and Nontraditional Assets

• Cross-border gifting requires extra compliance checks; brokers may require tax residency verification and additional documentation for non-U.S. recipients.
• Tokenized or blockchain-based representations of equities may have different transfer mechanics—on-chain transfers move tokens, but legal title to an underlying share may still require off-chain re-registration. Confirm legal ownership transfer steps with providers and consider using Bitget Wallet for on-chain custody where supported.

Final Guidance and Next Steps

If you asked “can you transfer stocks to someone else,” the short answer is yes—subject to account types, broker rules, documentation, and tax considerations. Begin by confirming the recipient’s account details, contacting your broker for their transfer form, and deciding whether you want to transfer existing shares (carryover basis) or buy shares directly into the recipient’s account (fresh basis).

For secure custody and streamlined identity verification when working with digital asset transfers, consider Bitget Wallet as part of your multi-asset strategy. For any significant transfer, consult a tax or estate professional.

Ready to transfer or gift shares? Start by verifying recipient account details and contacting your broker or Bitget support to get the correct transfer forms and instructions. Keep thorough records and notify the recipient to ensure a smooth handoff.