How to Leave Stocks to Someone
When stocks are held for an extended period of time, they can appreciate largely in value. If you buy stocks during your lifetime and then pass them on to a family member, they could potentially allow your family member to become wealthy. If you wish to leave your stocks to someone else, you will need to create a will that includes information about the stock and whom you want to inherit it when you die.
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Instructions
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Create a will for your estate. It can be created on your own with the help of a software program or a book. You can also get a form that simply allows you to fill in the blanks. Some people prefer to hire an estate planning attorney for this part of the process.
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Name the beneficiaries you want to receive the stock. When creating a will, you have to specifically name a beneficiary for each piece of property or simply leave it all to a beneficiary. Decide whom you want to inherit the stock and then include that person's personal information in the will.
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Specify which shares of stock will go to that heir. On the will, you can list the specific property that you want your beneficiary to inherit. If you plan on distributing the stock that you own to multiple beneficiaries, be sure to specify which shares go to which beneficiary.
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Sign the will in front of the appropriate number of witnesses for your state. Some states require two witnesses, while other states require three witnesses to be present when signing the document. This way, the witnesses can testify to the validity of the will if it is contested in court.
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Store the will in a safe place and leave a copy of it with your lawyer. This way, when you die, it will be discovered and your property will go to the appropriate beneficiaries. Once you pass away, the executor you appointed will take the will and validate it with the probate court. Then he can begin transferring the shares of stock to your beneficiaries on your behalf.
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Tips & Warnings
Besides using a will, you also have the option of creating a trust. By creating a trust, the executor can avoid probate and start distributing the shares of stock immediately after you die.
Choose an executor whom you trust. If an executor does not distribute the will according to your wishes, it could negatively affect your beneficiaries.
