how to gift stocks fidelity: Complete Guide

Gifting Stocks With Fidelity Investments

As more families and donors consider transferring securities instead of cash, many search for clear directions on how to gift stocks Fidelity accounts and outside recipients. This article explains what “gifting stocks” means, the main ways to move shares using Fidelity Investments, the paperwork and timing involved, and the tax and recordkeeping issues to watch for. You will get a step‑by‑step checklist, Fidelity‑specific procedures and forms, an example letter of instruction, and practical tips to reduce errors and delays.

As of 2026-01-15, according to Fidelity support pages, Fidelity provides electronic DTC deliveries (DTC #: 0226), standardized gift forms and investor center assistance for transfers; readers should confirm current procedures with Fidelity before initiating a transfer.

Overview of Stock Gifting

The phrase "how to gift stocks Fidelity" refers to the process of transferring ownership of shares, mutual funds, or other securities using Fidelity Investments as either the delivering or receiving broker. Gifting stocks normally means an in‑kind transfer of securities (not selling and giving the cash). Typical motivations include wealth transfer between family members, funding education, simplifying estate planning, and making tax‑efficient charitable donations.

Common gifting scenarios:

• Family gifts: parent giving appreciated shares to adult child.
• Gifts to minors: using a custodial UGMA/UTMA account so the child holds the shares.
• Gifts to charities: donating appreciated securities directly to a qualified nonprofit.
• Transfer between Fidelity accounts: moving securities from one Fidelity account to another without selling.

Why choose an in‑kind gift? Donating or gifting shares in kind preserves the security’s cost basis and avoids immediate sale by the donor, which can be tax‑efficient when done correctly.

Key Legal and Tax Considerations

Before you act on how to gift stocks Fidelity or elsewhere, understand the high‑level tax and legal framework:

• Gift tax and annual exclusion: In the U.S., gifts above the IRS annual exclusion may require a gift tax return. Confirm current IRS limits with a tax advisor or the IRS website.
• Cost basis and carryover basis: The recipient generally receives a carryover cost basis. When the recipient sells the shares, they are responsible for capital gains tax on the difference between selling price and the donor’s original cost basis (subject to certain exceptions like gifts at death).
• Who pays capital gains? The recipient when they sell. The donor may have gift tax reporting obligations.
• Retirement accounts: Assets in IRAs and most retirement plans generally cannot be gifted (required minimum distributions and prohibited transfers apply).

This guide explains Fidelity‑specific steps, but it is not tax or legal advice—confirm limits and consequences with a qualified tax professional.

Methods to Gift Stocks via Fidelity

There are several principal methods to transfer securities using Fidelity as the sender or receiver. Choose the method that matches the recipient’s setup and your goals:

• Internal Fidelity transfer (Fidelity-to-Fidelity) — simplest when both parties have Fidelity accounts.
• Transfer to an outside brokerage — requires additional details (DTC number, receiving account) and may take longer.
• Delivering physical stock certificates — rare today, involves reregistration and mailing.
• Purchase in recipient’s name — donor buys shares directly into recipient’s account.
• Custodial accounts (UGMA/UTMA) — for gifts to minors with a custodian managing until legal age.
• Trusts and transfer‑on‑death (TOD) instructions — for estate planning and controlled transfers.

Each route has different paperwork, verification, and timing, summarized below.

Gifting Between Fidelity Accounts

When both giver and recipient have Fidelity accounts, the process is usually the fastest and simplest. How to gift stocks Fidelity within Fidelity typically involves:

• Completing a Transfer Between Existing Fidelity Accounts form or providing a signed letter of instruction that identifies the security, number of shares, sender and recipient account numbers, and account registrations.
• Providing the recipient’s Fidelity account number and tax ID (SSN or TIN) and matching account registration details exactly.
• Signature requirements: the delivering account owner must sign; Fidelity may request a signature guarantee in some cases.
• Processing time: generally 1–4 business days for an electronic internal transfer, depending on verification and cutoffs.

Tips: Confirm that the recipient’s account registration (name format and SSN) matches Fidelity records to avoid delays, and instruct the recipient to expect a confirmation or account activity notice after completion.

Gifting to an Outside Brokerage or Institution

To move shares from a Fidelity account to a different brokerage or institution, follow a more detailed path. Many donors ask how to gift stocks Fidelity when the recipient uses another broker; the process usually requires:

• Receiving firm information: name, address, receiving account number, and the receiving firm’s DTC number for electronic delivery.
• Paperwork: Fidelity’s Transfer Shares as a Gift — Nonretirement form or a detailed signed letter of instruction that includes recipient info, security description, and the receiving firm details.
• Signature guarantees: Often required for non‑retirement transfers to outside firms, especially for high‑value transfers or when reregistration is involved.
• Mailing instructions: Fidelity will provide an address for sending forms or may accept drop‑off at an Investor Center. The receiving firm may also need to accept the incoming transfer.
• Timing: External deliveries can take multiple weeks depending on the receiving firm’s procedures and whether certificate re‑registration or manual processing is required.

Important: Obtain exact routing (DTC) and account details from the receiving broker before initiating. Mistyped account numbers or mismatched registrations are common sources of delay.

Gifting Directly to a Person (non‑brokerage recipient)

Gifting shares directly to an individual who does not already hold a brokerage account involves extra steps because the recipient must be identified and, often, a receiving account set up.

Key points when gifting to a person without an existing brokerage account:

• Include full recipient details in your instructions: full legal name, mailing address, Social Security number (or TIN), date of birth (especially for minors), and whether the recipient will open a brokerage account to receive the shares.
• If the recipient prefers anonymity, check whether the receiving institution or transfer agent can accept anonymous gifts — many brokers and transfer agents will not allow fully anonymous registrations because of regulatory and tax ID requirements.
• If sending to a transfer agent for certificate reregistration, confirm the agent’s reregistration and mailing steps.

Because recipient verification is mandatory for regulatory reasons, fully anonymous gifting of registered securities is typically impractical.

Gifting to Minors (Custodial Accounts: UGMA/UTMA)

Custodial accounts under UGMA/UTMA are the most common and practical way to gift securities to minors. How to gift stocks Fidelity to a minor generally involves:

• Opening or using an existing Fidelity UGMA/UTMA custodial account in the child’s name with a custodian (parent or guardian) listed.
• Providing the child’s SSN/TIN and date of birth, plus custodian information.
• Transferring shares into the custodial account via a Transfer Between Existing Fidelity Accounts form or an external transfer form.
• Custodial rules: the custodian manages the assets until state‑specified age (varies by state), when the child gains full control.

Note: State law controls the age at which custodianship ends. Confirm state rules and consider discussing larger gifts with a financial planner to preserve financial aid eligibility or manage taxes.

Gifting to Charities

Donating appreciated securities directly to a qualified charity is a commonly recommended tax‑efficient strategy because charities receiving appreciated securities often sell them without recognizing capital gains, and the donor may be eligible for a charitable deduction when applicable.

Steps when gifting to a charity via Fidelity:

• Confirm the charity’s brokerage instructions, including the charity’s brokerage account name, receiving firm name, DTC number (if applicable), and any required reference or donor ID the charity requests.
• Use Fidelity’s gift transfer form or a letter of instruction identifying the security (CUSIP), number of shares, donor name, and whether you want the gift to be designated or anonymous.
• Many charities accept in‑kind transfers; some provide a simple form or brokerage details for donors to use.

Tax note: Charitable tax benefits depend on your situation and current tax law; consult a tax professional for your case.

Required Information and Documentation

Whether you’re asking how to gift stocks Fidelity or to another broker, prepare the following items to speed processing:

• Sender’s Fidelity account number and full legal name as on the account.
• Recipient’s full legal name and Fidelity account number (for internal transfers) or receiving broker name, DTC number, and receiving account number (for external transfers).
• Recipient SSN or TIN (required for registration and tax reporting).
• Security details: name of the security, ticker, CUSIP number if known, and number of shares or dollar amount.
• Date and signature of the delivering account owner; signature guarantees where required.
• For minors: custodial details, child’s SSN, date of birth, and custodian information.
• For charities: charity’s acceptance confirmation, any donor IDs the charity requests, and contact for acknowledgement.

Keep copies of all forms and confirmations for your tax records and to resolve any disputes.

Fidelity‑Specific Procedures, Forms, and Addresses

Fidelity provides specific forms and instructions to facilitate gifting. Commonly used Fidelity documents and details include:

• Transfer Between Existing Fidelity Accounts form — for internal moves between Fidelity accounts.
• Transfer Shares as a Gift — Nonretirement form or a signed letter of instruction — for transfers to outside brokers or non‑Fidelity recipients.
• Fidelity DTC number for electronic deliveries: 0226 (confirm current number directly with Fidelity before initiating any transfer).
• Mailing and delivery: Fidelity accepts forms via mail and at Investor Centers; contact Fidelity to confirm the current mailing address or PO box for physical deliveries and reregistration requests.

As of 2026-01-15, according to Fidelity support, signature guarantees and investor center verification options remain part of standard transfer security protocols; always check Fidelity’s current investor center guidance or call customer service for the most recent forms and addresses.

Signature Guarantees, Limits, and Timing

Signature guarantees protect against unauthorized transfers and are commonly required for: transfers to third parties, transfers involving physical certificates, high‑value transfers, and certain reregistrations. Key points:

• When required: external transfers and reregistration often require a signature guarantee. Fidelity may waive a guarantee for small internal transfers, but policies change—confirm with Fidelity before relying on an exception.
• Where to get a guarantee: many banks and brokerage firms provide Medallion or signature guarantees; notary services generally do not provide Medallion guarantees.
• Processing times:
  • Intra‑Fidelity transfers: typically 1–4 business days.
  • Incoming transfers to Fidelity from outside: often 1–4 business days after receipt, but can vary.
  • Outgoing transfers to outside brokers: often several business days to multiple weeks, depending on the receiving broker and whether certificates or manual reregistration are required.
• Notifications and confirmations: Fidelity normally sends an activity notice or confirmation to the recipient and the sender; track these to confirm completion.

Plan for extra time around dividends, record dates, or tax filing deadlines.

Cost Basis, Carryover Basis, and Tax Reporting

Understanding cost basis and tax reporting is essential in any gifting decision. When you gift securities using Fidelity (or another broker), expect the following:

• Carryover basis: In general, the recipient inherits the donor’s cost basis and holding period (carryover basis). This affects the recipient’s capital gains calculation when they sell the shares.
• Tax reporting: If a gift exceeds the IRS annual exclusion, the donor must file a gift tax return (Form 709 in the U.S.)—filing does not necessarily mean taxes are due, as lifetime exemptions may apply.
• Adjusted basis for sold shares: When the recipient later sells, they report capital gain or loss based on the carryover basis. If the recipient later sells at a loss within certain time windows near the date of gift, special rules can apply—seek tax advice.
• Brokerage reporting: Brokers typically report transfers and will issue Form 1099‑B for sales by the recipient, using reported cost basis where available. Maintain donor records to prove original basis if needed.

Both donor and recipient should retain transfer confirmations, brokerage statements showing the transferred shares, and purchase records to substantiate basis and holding period.

Restrictions and Special Cases

Some common restrictions and special cases when learning how to gift stocks Fidelity include:

• Retirement accounts (IRAs, 401(k)s): Generally cannot be transferred as gifts while the account owner is living; required minimum distribution rules and plan contracts limit transfers.
• Transfer limitations on certain mutual funds or securities: Some mutual funds or restricted shares may have transfer or redemption limits.
• Fractional shares: Handling varies by broker—some brokers aggregate fractional shares to cash or require rounding; verify how fractional share gifts will be treated.
• State law for minors: State custodial rules affect the termination age and ownership transfer in UGMA/UTMA accounts.
• Account registration mismatches: Names and tax IDs must match exactly with broker records to avoid rejections.

If you face a special security or transfer restriction, contact Fidelity or the security’s transfer agent for guidance.

Step‑by‑Step Practical Guide (Checklist)

A compact checklist that answers the practical question of how to gift stocks Fidelity and to outside recipients:

1. Confirm recipient account type: Fidelity, another brokerage, custodial, trust, or charity.
2. Gather recipient info: full legal name, SSN/TIN, Fidelity account number or receiving broker DTC and account number, mailing address.
3. Decide on the gift method: internal Fidelity transfer, external transfer, custodial account, or charitable donation.
4. Obtain and complete Fidelity forms or prepare a detailed letter of instruction. Include desired anonymity preferences and donor contact info.
5. Get a signature guarantee if required (verify thresholds with Fidelity).
6. Submit the paperwork to Fidelity by mail or at an Investor Center, or coordinate with the receiving broker for incoming instructions.
7. Track processing: expect internal transfers in 1–4 business days and external transfers in multiple business days or weeks.
8. Confirm completion and retain copies of confirmations and tax documentation for records.

Following this checklist reduces errors and helps you meet tax reporting obligations.

Fees and Costs

Fidelity typically does not charge specialized fees for routine in‑kind transfers between Fidelity accounts, but costs may arise in other circumstances:

• External brokers may charge incoming or outgoing transfer fees; check both firms’ schedules before initiating a transfer.
• Costs for physical certificate reissuance, overnight shipping, or signature guarantee services may apply.
• Tax compliance costs (professional tax advice or preparing a gift tax return) are separate from broker fees.

Confirm any potential fees with Fidelity and the receiving institution before starting the transfer.

Frequently Asked Questions

Q: Can I gift from an IRA at Fidelity?

A: Generally no. Most retirement accounts (IRAs) do not permit outright gifts of assets while the owner is living. Required minimum distribution rules and plan restrictions apply. Consult Fidelity and a tax advisor for alternatives such as making charitable donations from IRAs (in‑kind or Qualified Charitable Distributions when eligible).

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

A: Gifts themselves do not typically trigger capital gains tax for the donor; however, the recipient assumes the donor’s cost basis and will be responsible for capital gains when selling. Gift tax rules and reporting may apply if the gift exceeds the annual exclusion.

Q: How long does gifting take at Fidelity?

A: Intra‑Fidelity transfers: commonly 1–4 business days. Transfers to or from outside brokers: often several days to multiple weeks depending on the receiving institution and whether certificates or manual processing are needed.

Q: Is a signature guarantee required?

A: It depends. External transfers and certain reregistrations usually require a Medallion or signature guarantee. Fidelity may waive guarantees for some internal transfers—confirm with Fidelity.

Q: Can gifts be anonymous?

A: Full anonymity is often difficult because brokers and transfer agents require tax IDs and registration details. For charitable donations, charities may be able to accommodate anonymity requests—confirm with the charity.

For complex questions, contact Fidelity or consult a qualified tax professional.

Example Letter of Instruction (Outline)

Below is an outline of a concise letter of instruction you can adapt when asking Fidelity to transfer shares as a gift. Fidelity also provides templates and forms—use official forms when available.

Required elements:

• Sender information: Full name, Fidelity account number, mailing address, phone number.
• Statement of intent: Clear statement that you authorize Fidelity to transfer shares as a gift.
• Recipient details: Full legal name, receiving broker name (if outside Fidelity), receiving account number (or recipient Fidelity account number), recipient SSN/TIN, mailing address.
• Security description: Name of security, ticker symbol, CUSIP (if known), and number of shares or dollar amount.
• Special instructions: Anonymous gift preference, designate charity, or custodial account details.
• Signature and date: Signature of delivering account owner and printed name.
• Signature guarantee: If required, include a Medallion stamp or guarantee section.

Example (short):

I, [Donor Full Name], owner of Fidelity account #XXXXXXXX, authorize Fidelity Investments to transfer as a gift [number] shares of [Security Name] (ticker [TICKER], CUSIP [XXXXXX]) to [Recipient Full Name], Fidelity account #YYYYYYYY (SSN: XXX-XX-XXXX). Please treat this transfer as an in‑kind gift. Donor contact: [phone/email].

Donor signature: ______________________ Date: ________

(Signature guarantee/stamp if required)

Always include copies of identification and contact details as Fidelity requests.

Best Practices and Risks

To reduce the chance of error or delay when you figure out how to gift stocks Fidelity, follow these best practices:

• Confirm receiving account details before sending forms; a single digit error in account number can cause long delays.
• Coordinate timing around dividend record dates or planned sales if tax events are timing‑sensitive.
• Ask the receiving charity or broker for a written confirmation of their receiving instructions.
• Retain all transfer confirmations and statements for tax records and to substantiate cost basis.
• Understand transfers are typically irreversible once completed—verify carefully before submission.
• Prefer electronic transfers via DTC when possible to reduce mailing and re‑registration risks.

Risks: mistaken registration, delayed transfers around corporate actions, unexpected fees by a receiving broker, or incomplete documentation that leads to rejections.

Contact Information and Further Resources

If you need help with how to gift stocks Fidelity:

• Contact Fidelity customer service or visit a Fidelity Investor Center for in‑person assistance and up‑to‑date forms.
• Consult Fidelity support pages on gifting shares and account services for the most current forms and addresses.
• For tax and estate questions, consult a qualified tax or estate planning advisor and consult IRS guidance for gift tax rules.

If you are also exploring crypto‑native gifting or digital asset custody alongside securities gifting, consider Bitget and Bitget Wallet for custody and transfer options in the digital asset domain. Explore Bitget resources for wallet setup and secure custody options.

References and External Resources

Sources consulted for this guide include: Fidelity support pages (How to Gift Shares Into or Out of Fidelity; Customer Service FAQs: Account Services), and supplemental investor education from reputable personal finance and investing guides. Readers should consult Fidelity’s official pages and their tax advisor for the latest guidance.

Sources (no external hyperlinks provided per policy):

• Fidelity Investments — support and help center pages on gifting shares and account transfers (official Fidelity guidance).
• Investor education: Vanguard investor guides, NerdWallet, Business Insider, Motley Fool, Public.com (used for comparison of common gifting practices and tax considerations).

As of 2026-01-15, according to Fidelity support pages, the DTC number and standard practices described above were in effect; always verify current procedural details with Fidelity directly.

Notes and Disclaimers

This article explains general procedures and best practices for gifting securities using Fidelity as a delivering or receiving institution. It is not tax, legal, or investment advice. Procedures, forms, DTC numbers, signature‑guarantee thresholds, and tax rules can change. Verify current Fidelity instructions and IRS rules before initiating any transfer.

Further steps

If you are ready to gift securities, gather the recipient details, call Fidelity to confirm the right form and address, and get a signature guarantee if required. For those also managing digital assets, explore Bitget Wallet for secure custody solutions and Bitget for market access and crypto transfers.