Author Topic: What to do with inherited stock  (Read 5070 times)

jfer_rose

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What to do with inherited stock
« on: June 23, 2015, 10:04:23 AM »
I find myself in the fortunate position of having inherited some stock. About 75 shares of ExxonMobile. So now I need to decide what to do with it. This stock has been in the family for generations. It originally belonged to my great-grandfather. Now, my instinct is to not to give it any sentimental value in that respect. And at 37, I am single with no romantic prospects, I'm not sure I'll have any kids to pass it down to.

I keep my investments in broad index funds and I've never before owned any individual stocks. My impulse it to sell. I hope to move to another state, so it would be nice to have some extra cash for that. After I move, I would expect to put any leftover cash into index funds.

Apparently, I have the choice of making a batch sale (which means all my stocks would be sold on one day, up to five days after I tell them to sell) or I can make a market sale where they would start selling off my stocks the same day. The market sale costs $10 more than the batch sale. It seems like the advantage of the market sale is that I could lock in a certain price for at least some of the stock . Does it make any difference which I choose?

Open to any thoughts on this topic.

Spork

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Re: What to do with inherited stock
« Reply #1 on: June 23, 2015, 10:16:32 AM »

You probably do want a market sale ... such that YOU specify the price.

You might also want to put the stock in a low cost trading account.  I know Ameritrade doesn't make any differentiation in cost on sale method.  I also think you can deposit those certificates in Vanguard if you already have an account -- $7 a trade (or less if you have a large account already).

hodedofome

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Re: What to do with inherited stock
« Reply #2 on: June 23, 2015, 10:20:55 AM »
It's not that much money, I wouldn't spend too much time worrying about it. Just make a decision and get on with your life.

If it was me, I'd hang onto it for sentimental reasons. Just to tell people a good story. Even better if you have the paper certificates.

GuitarStv

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Re: What to do with inherited stock
« Reply #3 on: June 23, 2015, 10:54:11 AM »
In your situation I'd sell it in the cheapest manner possible and reinvest the proceeds in index funds.  Sentimentality regarding stocks is silly, like having a favourite 200$ worth of pennies in jars under your bed . . .

forummm

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Re: What to do with inherited stock
« Reply #4 on: June 23, 2015, 12:07:32 PM »
You say "about 75 shares" of XOM. Just wondering if you think you have an odd number like 75. Since this is a long-inherited set of shares, and there have been 5 share splits in the last 40 years, you might have more shares than you think.

jfer_rose

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Re: What to do with inherited stock
« Reply #5 on: June 23, 2015, 12:42:39 PM »
You say "about 75 shares" of XOM. Just wondering if you think you have an odd number like 75. Since this is a long-inherited set of shares, and there have been 5 share splits in the last 40 years, you might have more shares than you think.

I do know the exact number of stocks I am inheriting. I have a large family and the stocks were split many ways.

YoungInvestor

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Re: What to do with inherited stock
« Reply #6 on: June 23, 2015, 03:30:41 PM »
It's not that much money, so either way won't matter much...

Would you incur cap gain taxes if you sold? How much?

seattlecyclone

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Re: What to do with inherited stock
« Reply #7 on: June 23, 2015, 08:50:31 PM »
Yeah, just sell it. Your capital gains should be minimal since the cost basis reset to the value on the date of your family member's death. Do whichever sale method seems to make the most sense to you, the difference in fees and sale prices is hardly worth worrying about for a relatively small amount of money such as this. Then get the proceeds into Vanguard.

mrpercentage

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Re: What to do with inherited stock
« Reply #8 on: June 24, 2015, 02:49:07 AM »
Keep it. Oil is down right now. Exxon is not as much but giving it 3 years will help a lot.

StockBeard

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Re: What to do with inherited stock
« Reply #9 on: June 24, 2015, 09:47:04 AM »
Sell it. You'll stop supporting a company which business is based on destroying the planet

Goldielocks

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Re: What to do with inherited stock
« Reply #10 on: June 24, 2015, 10:38:28 PM »
LOL!  I thought your title meant that you had inherited a few cows....   I am definitely working too much in rural locations these days.

jfer_rose

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Re: What to do with inherited stock
« Reply #11 on: June 25, 2015, 04:31:32 AM »
Writing to update that I have sold the stock. Thanks for all the feedback!

patrickza

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Re: What to do with inherited stock
« Reply #12 on: June 25, 2015, 06:27:16 AM »
Sell it. No point in hanging on to something for sentimental reasons.

daverobev

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Re: What to do with inherited stock
« Reply #13 on: June 26, 2015, 08:16:07 AM »
Sell it. You'll stop supporting a company which business is based on destroying the planet

Faulty logic. It's the customers that support the company, not the owner.

Spork

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Re: What to do with inherited stock
« Reply #14 on: June 27, 2015, 04:42:36 PM »
Sell it. You'll stop supporting a company which business is based on destroying the planet

Faulty logic. It's the customers that support the company, not the owner.

Yeah I started a reply saying that and walked away from it.

My opinion here is that IF you want to change this sort of company then starting some sort of stockholder's union is actually the way to make change.  If you can do it and make a profit, you're probably not just changing that company... you're changing all companies in that sector.

The corollary here is that you pretty much have to avoid all cars, trucks, buses, airplanes, etc. -- if you truly believe they are the bringers of evil.

forummm

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Re: What to do with inherited stock
« Reply #15 on: June 27, 2015, 06:28:20 PM »
LOL!  I thought your title meant that you had inherited a few cows....   I am definitely working too much in rural locations these days.

I guess that's another way to inherit some moo-la.

a1smith

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Re: What to do with inherited stock
« Reply #16 on: June 27, 2015, 08:29:09 PM »
Sell it. You'll stop supporting a company which business is based on destroying the planet

Are you prepared to not have the 1000's of products that are petroleum based?

Here is a small list for starters - Products from petroleum

forummm

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Re: What to do with inherited stock
« Reply #17 on: June 28, 2015, 05:36:18 AM »
Sell it. You'll stop supporting a company which business is based on destroying the planet

Are you prepared to not have the 1000's of products that are petroleum based?

Here is a small list for starters - Products from petroleum

There's even petroleum in nearly all processed food (such as flavoring chemicals)--as well as the plastic wrapping. The stuff is ubiquitous.