There are many reasons to transfer stock.
You can transfer shares of a company as a payment of a debt, as a donation, or as an inheritance.
Regardless of the reason, the process is about the same.
There can be significant tax advantages to making a payment with shares of stock instead of cash.
Reasons to Pay with Stock You can pay for things with stock to avoid capital gains taxes.
For instance, you can donate stock to approved charities and avoid the capital gain.
Also, you can leave shares of stock to your heirs.
There may still be some taxes incurred, so work with a qualified tax professional.
You may also wish to pay for something with shares of stock.
This can be common in the purchase of a business.
Regardless of the reason for your stock transfer, the process is very similar.
How to Transfer Stock To transfer shares from your account to the account of another entity, you will need the account information for the receiving account.
Then approach the bank or brokerage that currently holds the shares and ask for a Transfer of Assets (TOA) form.
This form will authorize the brokerage to release the shares from your account and transfer them to the receiving account.
All account owners will need to sign the form and a signature guarantee will likely be required.
Understand the Tax Implications Share transfers usually have significant tax benefits.
To realize the full benefits of your transfer, work with a qualified tax professional.
Your accountant or lawyer can help you stay within the IRS guidelines for this type of transaction.