How to Transfer Stocks to a Trust
Legal trusts can be used for all sorts of purposes. They provide many benefits as well, such as protection from creditors and probate. When you create a trust, you must fund it by retitling all of your assets in the name of the trust. This is relatively easy to accomplish in most cases.
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Instructions
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Gather all of your stock certificates and send them to one of two places: either back to the transfer agent of each company or to your brokerage account. If you opt for the latter, wait for the stocks to show up in your account online or in your next statement before taking further action.
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Include a copy of the trust for each company that you must send your certificates back to, as well as a signed stock power. If you are sending your certificates to a brokerage account instead--and this is usually a much easier and more sensible option--then include a copy of your trust with them as well.
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Create a new brokerage account in the name of your trust. Once the stocks you deposited into your old account are listed there, transfer the entire account into the trust account. This will effectively rename all of the stocks in the name of your trust. Have your brokerage account reissue the certificates to you if you want them. They will now be automatically titled in the name of your trust.
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Designate the trustee of your trust as the person empowered to exercise your company stock options if they are "statutory" or "incentive" options, which means that they are counted as preference items for the Alternative Minimum Tax. Do not have them titled directly in the name of your trust. However, you must instruct the trustee not to sell the stock until the time requirements for the options have been met.
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