You are here:

Tax Law (Questions About Taxes)/Re: Receiving equities as a gift


Dear John:

I'd appreciate advice on the following matter:

My dad, who is nearing the end of his life, wants to make a gift to me of one of his brokerage accounts, approximately $70K.  From what I understand there are 2 options open:  A.  I can open a brokerage account with the same company and he can transfer all the equities to that new account; or B. He can make an addendum to his will saying that at the time of his death all proceeds from X account will go to me.  From a tax point of view, which option is better for me.

Thanks for you help.

Best Regards,


Thanks for your question.

As you have worded it,neither is the best option. The only tax implications are income tax.

Under the first option, he is transferring the securities to you prior to death, making it a gift. Your cost basis would be his transferred basis, resulting in a larger profit when you sell, and higher taxes.  This would also require him yo file a gift tax return,although any gift tax is not likely to be due.

Under the second option, if he specifies you are to receive the proceeds upon death, thay implies they are tobe sold and the cash given to you. It would be better it he just stated account holdings go to you. Either way you basis is the fair market value as of date of death, which would likely result Ina much smaller. Tax liability, if any.

Hope this helps

John Stancil CPA  

Tax Law (Questions About Taxes)

All Answers

Answers by Expert:

Ask Experts


John Stancil, CPA


I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I am Professor Emeritus at Florida Southern College. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a CPA practice, specializing in tax, for over 35 years. I am a member of the National Association of Tax Professionals, The Florida Insititute of CPA's, The NCPE Fellowship. In addition I am a Certified Mentor for SCORE. Visit my website at I also offer seminars and consultations to churches and clergy on their tax issues at Also visit my blog, I am listed on Tax Connections at Prepare and file your own taxes at


I hold a doctorate in Accounting, and am a CPA. My certifications of CIA, CFM, and CMA are inactive. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I have operated a CPA firm for over 37 years and have taught accounting and tax at the college level for over 35 years.

FICPA, NATP, NCPE Fellowship, Lakeland Business Leaders

The CPA Journal, Florida CPA Today, Green Consumer, Green Business, Global Sustainability as a Business Imperative, Palmetto Review, NATP TaxPro Quarterly, Mustang Journal of Finance and Accounting.

DBA University of Memphis MBA University of Georgia BS in Accounting Mars Hill University

©2016 All rights reserved.