Legal Question in Wills and Trusts in New York

transfer of stocks

If someone wanted to transfer stocks to someone else, who has to pay tax on it if any at all. Can this be done or do the stocks have to be sold first. Also, how much money can someone give to someone else without paying a gift tax on it? How much per year is allowed?


Asked on 6/14/02, 1:53 am

2 Answers from Attorneys
Walter LeVine Walter D. LeVine, Esq.

Re: transfer of stocks

Gifts of stocks having a market value of $11,000 to each recipient have no tax consequence. However, the recipient of the the stock takes over your original cost so if the market value is higher and they sell the stock they pay the tax on the gain.

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Answered on 6/14/02, 10:38 am
Sarah Klug Law Office of Sarah Scova Klug PLLC

Re: transfer of stocks

You may make an annual gift of $10,000; meaning, if you make a gift to someone else, the gift tax does not apply to the first $10,000 you give that person each year.

Even if tax applies to your gifts, it may be eliminated by the unified credit.

I suggest you contact your accountant.

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Answered on 6/14/02, 2:17 pm


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