How to Redeem Stocks in a Trust
Trusts can provide many types of protection for stocks and other investments and assets. Although setting up a trust can be an arduous process in some cases, conducting transactions once the trust is established is relatively simple. It is, in fact, virtually identical to buying or selling stock in any other type of account.
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Instructions
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Deposit or transfer stocks into your trust account once it has been established. You can either deposit money in the trust account to purchase stock or else deposit stock in the form of certificates.
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Place a sell order to sell the stocks you want to liquidate. You can do this either directly online or by calling your broker. Specify the number of shares you want to sell and the execution price. You can either set a limit price or take the current market price.
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Wait three business days for your stocks to settle. If you place your sell order on Monday, the funds from your sale will be available on Thursday. The proceeds can either be sent to you as a check or else deposited in the money market within the account.
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Make certain that your stock sales do not somehow conflict with the parameters laid out in the trust. For example, some trusts may stipulate that all sale proceeds must be held within the trust account and not dispersed to the grantor or beneficiary.
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Report the sale proceeds as a gain or loss either to the trust or the grantor, depending upon how the trust is set up. Your tax or financial adviser should be able to tell you how to declare the sale.
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