Tony Novak profile picture
  "AskTony" column archive        


Most Popular

AskTony Archive

This Web site contains a compilation of more than a thousand consumer finance  columns written by Tony Novak from the 1980s through 2006, updated and reformatted for maximum usefulness today.  New material was added after 2010.

Content is the opinion of the author and does not represent the position of any other person or entity. Information is from sources believed to be reliable but cannot be guaranteed.

The author is paid for product endorsements and has an ownership or other financial interest in the businesses related to the topics covered.

New questions

Submit consumer finance questions at and health insurance questions at

Sponsored by: Insurance Exchange - your source of valuable information on state and federal health reform benefits.

Core Health Insurance - America's favorite mini-med insurance  with affordable premiums, freedom to choose providers, optional PPO discounts and guaranteed eligibility regardless of medical conditions.

Please support the Web sites that make publication of AskTony services possible.

Transfer stock to children

originally posted: 11/22/2006  reposted: 2/18/2011 This post has not been recently reviewed or revised by the author and may be out of date. If in doubt, please send a new question or ask for an update.

Q: How do I transfer stock to my children without selling it first? The stock is worth a lot more than I paid for it and I do not want to pay taxes on the gain.

A: Assuming that you have the stock held in an account in your name, your children are minors and you will be custodian of their account, just complete the forms to open an empty Uniform to Minors Account in each child’s name at the same financial institution and then write a simple Letter of Authorization giving instructions to transfer the stock. There is no tax on the transfer but the children inherit your cost basis so there could be a tax on a sale in the future. If you are using Vanguard or Ameritrade, the forms are available at


More resources: