Author Topic: Best way to gift $1000 VTI ETF to niece?  (Read 1933 times)

trashmanz

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Best way to gift $1000 VTI ETF to niece?
« on: October 25, 2016, 08:41:49 AM »
Best way to gift $1000 VTI ETF to niece?  Back in the day, used to be able to just buy a stock certificate and gift it, nowadays, do you need Social security numbers and such to do this?

jamesbond007

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Re: Best way to gift $1000 VTI ETF to niece?
« Reply #1 on: October 25, 2016, 02:38:04 PM »
Posting mainly to follow. I want to gift to someone too.

Vagabond76

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Re: Best way to gift $1000 VTI ETF to niece?
« Reply #2 on: October 25, 2016, 06:44:50 PM »
Do you want to gift your shares, or just want the niece to own some shares of VTI (or any other security)?

If the former, you need to contact your broker, and you will need to work with your niece (or parent) to start her own account.

If you just want to give her $1000 so she can start her own account, you can do that.

Or you can use Sparkgift.com to send her $1000 in VTI shares.  They will even do fractional shares.

johnny847

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Re: Best way to gift $1000 VTI ETF to niece?
« Reply #3 on: October 25, 2016, 08:05:49 PM »
Just FYI: Either you or your broker needs to tell her or her broker what your basis is in these shares. (I keep saying or your broker because I don't know what the rules are on covered shares when the shares are gifted). If your shares are covered shares then your broker may tell her broker automatically what the basis is - but I would ask them about it.

http://fairmark.com/investment-taxation/capital-gain/stocks-and-other-securities/stock-received-gift/

Vagabond76

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Re: Best way to gift $1000 VTI ETF to niece?
« Reply #4 on: October 25, 2016, 08:18:27 PM »
Do you want to gift your shares, or just want the niece to own some shares of VTI (or any other security)?

If the former, you need to contact your broker, and you will need to work with your niece (or parent) to start her own account.

If you just want to give her $1000 so she can start her own account, you can do that.

Or you can use Sparkgift.com to send her $1000 in VTI shares.  They will even do fractional shares.

A couple other thoughts--my broker charged a ridiculous amount to transfer shares to another person.  YMMV, but in my case it would eat up a chunk of your gift.  Sparkgift's fee is a lot lower.  Also, if you are gifting actual shares, never gift shares that have lost value.  Neither you nor her get the benefit of that loss.  Sell the shares, realize the loss, and let her buy her shares with your proceeds.


frugalnacho

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Re: Best way to gift $1000 VTI ETF to niece?
« Reply #5 on: November 02, 2016, 07:40:56 AM »
You can open a custodial account at schwab.  I don't think you can gift that specific etf, but you could sell it, gift the money into her account, and then purchase something comparable that schwab offers.