Can I hold individual stocks in my living trust?
Can I hold individual stocks in my living trust? And, if so, how do I re-title ownership of a currently owned stock into the trust without triggering a taxable event? My objective of doing this is to arrange my assets (other than IRAs and life insurance) that pass automatically to named beneficiaries so the stock does not have to go through probate upon my death.
Yes. Think of an account as just a shell. You can put almost any investment under that shell. You can buy stocks, bonds, mutual funds, exchange traded funds, Cd's, etc. in a taxable account, Ira, Roth Ira, trust, custodial account, etc.
There should be no tax issues for simply changing the registation and journalling the assets into a trust. The cost basis should follow the positions over. You should note that trusts do in fact have a different capital gains tax and income tax schedules as well as rates.
A trust is a great vehicle and might be the solution to your issue, but there are also less expensive ways to pass the assets down and avoid the probate process. You could also just add a Joint party to the account or if you don't want to give up any control and ownership now, you can add a TOD - Transfer on Death aka Designated Beneficiary.
Finally, always consult with your estate planning attorney and CPA before you change account registrations.
Best of luck!
Sure you can hold stocks in your living trust. Open a brokerage account in the name of your living trust. Then instruct the brokerage firm to transfer the shares held in your existing account to your trust brokerage account.
If you have a stock certificate, you should be able to deposit those to your brokerage trust account. You'll need to give the broker a copy of your trust document or a certification of trust.
Transferring the assets should not trigger a taxable event, and the assets in your brokerage trust account will avoid probate when you die.
Kudos to you, sir, on planning your estate. You'll save your beneficiaries much aggravation and red tape.
You may do this and some custodians (firms that hold your investments) will retitle your current account into the living/revocable trust. If the account is Joint this could cause some issues but the custodian can give you some solutions. It should be an easy process. No tax issues as you are still the one in control of the asset and your social is used with the trust.
Yes you can! I have a clients who have all of their investments held by their living trusts. Just have the trust documents available and open an account at a broker dealer/custodian in the name of the trust. I think your objective is a very good one and I wish you the best of luck.
In almost all cases, a living trust could hold individual stocks. However, I have seen some trusts that exclude certain types of investments from their allowable holdings. For example, I have seen stock options excluded. If individual stocks were excluded from the eligible holdings in your trust, you could amend your trust so they would be allowable.