Gifting Stock: A Thoughtful Way to Support the Future

By Julie Meissner

The holiday season naturally pulls us toward reflection—where we’ve traveled this year, how we’ve grown, and the people who’ve walked beside us along the way. At Treehouse Wealth, we often talk about life as an adventure, with unexpected twists, summit moments, and stretches of trail where a little guidance makes all the difference.

Gifting stock is one of those quiet, powerful ways to share the journey. It’s more than a present, it’s an invitation. An invitation to invest in someone’s future, to spark long-term growth, and to create a gift that continues to evolve long after the wrapping paper is gone.

This year, if you’re looking for a holiday gift that reflects intention, impact, and a sense of financial possibility, gifting stock may be the right path to explore.

Why Gifting Stock Feels Different—In a Truly Impactful Way

Traditional gifts bring joy in the moment; gifted stock brings joy that compounds over time. It’s the equivalent of showing someone a scenic overlook and handing them a map, not telling them exactly where to go but giving them a head start on a rewarding direction. Here’s why many families are incorporating stock gifts into their holiday traditions:

• It Plants a Seed for Future Growth. A share of stock might not look festive on its own, but what it represents is a chance for money to multiply over time, which can be transformational. Whether the recipient holds it for a year or for decades, it becomes a living reminder that someone believed in their journey.
• It Sparks Financial Awareness. For children, teens, or young adults, owning stock can be an early stepping stone toward understanding investing, markets, and long-term planning. It turns abstract concepts into something they can watch, track, and learn from.
• It Can Be a Tax-Efficient Way to Give. Gifting appreciated stock allows you to share generosity and potentially reduce your own capital gains tax. If you’ve been holding onto highly appreciated positions, transferring shares instead of selling them may create a win-win.
• It Lets Your Values Travel Forward. What companies or industries matter to you? What impact do you hope to see in the world? Gifting shares aligned with your values—sustainability, innovation, community—passes along a piece of your perspective.

Ideas to Add Heart to a Gift of Stock

The most memorable gifts aren’t necessarily the biggest; they’re the ones that feel thoughtful and connected. A stock gift becomes far more meaningful when the recipient understands why you chose it. Perhaps it’s a company you’ve admired for years, a brand that reflects your shared values, or a symbol of future possibility. Sharing that story, through a handwritten note or a holiday card, turns an investment into an heirloom of intention. Additional ways to personalize a gift of stock:

• Include a small, themed item that represents the company or industry
• Share the “origin story” of how or why you invested in the stock
• Create an annual tradition of gifting shares tied to milestones or values
• Schedule a yearly check-in together to look at how the investment is growing

How to Gift Stock: A Route to Meaningful Giving

If you’ve never gifted stock before, it’s easier than you might think. You’re simply transferring something you already own to someone else, no elaborate paperwork required.

1. Decide What to Give

Start with the type of asset: an individual stock, ETF, or mutual fund. Many givers choose companies with a meaningful connection, whether it’s a brand the recipient loves, a company shaping the future, or a steady, long-term performer. Thinking intentionally about what the stock represents helps the gift feel purposeful rather than purely financial.

2. Confirm the Recipient’s Account Setup

To receive stock, the recipient needs a place to deposit it, such as a brokerage account or, for minors, a UGMA/UTMA custodial account. If they don’t already have one, helping them open an account can become part of the gift itself. This step also makes the transfer process goes smoothly and allows the recipient to track and manage their new investment easily.

3. Initiate a Transfer

Most transfers are done electronically through a DTC (Depository Trust Company) transfer. Your brokerage or financial advisor can guide you, but typically you’ll need the recipient’s account number and firm information. Depending on the institution, transfers can take a few days, so planning ahead allows your gift to arrive in time for the holidays.

Don’t Forget the Tax Rules Along the Way

Gifting stock comes with a few guidelines worth understanding, nothing complicated, but important to keep in mind so your generosity works the way you intend.

• Annual gifting exclusion: You can give up to $19,000 per recipient in 2025 without filing a gift tax return. This threshold applies per person, meaning you can gift stock to multiple people without triggering reporting requirements. It doesn’t mean you owe tax above this amount. It simply means you may need to file a gift tax form. For most families, gifts stay well within this limit.
• Cost basis transfers with the gift: When you gift stock, the recipient inherits your original cost basis and holding period. This matters if they later sell the stock, because their capital gain (and the taxes owed) will be calculated based on what you originally paid—not on its value when they received it. It’s a small detail that helps them understand the long-term implications of when and how they choose to sell.
• Appreciated stock is often best for gifting: If you hold shares that have grown significantly over time, gifting them rather than selling lets you avoid realizing capital gains. The recipient may pay lower taxes depending on their income bracket, or, if they hold the stock long enough, they may time the sale to their advantage. It’s a strategy that can reduce your family’s total tax bill across generations.
• Gifts to minors require a custodial account: For children under the age of majority, the stock must be placed into a UGMA or UTMA custodial account. An adult custodian manages the account until the child reaches the legally defined age (typically 18 or 21, depending on the state). This structure allows the gift to be transferred correctly and invested, but it also means the assets legally become the child’s when they reach adulthood. It’s something to keep in mind as you plan.

Connection Shapes the Season—Let It Shape Your Giving Too

In a season filled with movement, travel, gatherings, and traditions, it can be grounding to give something that lasts. Gifting stock is a way of saying, “I believe in your path.” I want to help you build something meaningful. I’m cheering you on as your journey unfolds.

For Treehouse Wealth clients, it can be a natural extension of the adventure mindset: embracing possibility, supporting growth, and creating moments that echo far beyond the season.

If you’d like help choosing what to give or understanding the tax implications, we’re here to guide you—on this step of the journey and every step ahead.