Settling estates liquidating stocks


If and when it is in the parties’ best interest, shares and an asset cost basis can be transferred “in kind” to any or all beneficiaries.Under this circumstance the Will, court, or governing document must allow for “in kind” distributions.If Joe Smith would have sold his stock during his life time at $60 a share he would have recognized for federal income purposes a $250,000 long term capital gain (assuming asset held over a year).This would have resulted in a personal income tax liability of $37,500 (assuming a 15% capital gains rate, $250,000 X 15%).



Information on this web site should not be construed as being specific advice or recommendations to any individuals regarding their personal circumstances.The first is to find the transfer agent, the company handling stock transactions for the certificate holder, and have the stocks changed from certificate form to direct registration or book entry, a record kept at the transfer agent, before selling them.The second is to put them in a brokerage account and then sell them.Normally, you send the agent a letter of instruction, which is simply a letter stating you want to put the certificates into direct registration, along with your certificates.