Grandparent transferring stock to minor

[Anonymous]

My dad has a few shares of common stock that he would like to gift to my son. The overall value is low, probably around $2,000. He doesn't have a broker himself, as they were gifted to him by his dad.

How hard is this to do? I reached out to our financial advisor and his secretary came back wanting to set up a 2hr meeting. I told her to go back and check with him as that seems utterly ridiculous, or am I missing something? Can I do this myself or do I need a professional to set up a custodial account and handle paperwork?

My father has specifically said he doesn't want them liquidated or put into the 529, he wants DS to be able to learn about investing, track the stock, etc for a few years. Don't judge the circumstances, it's nice of my father to give this gift even with the minor string that we hold onto the stock itself for a few years before selling it when it comes time for college.

[Anonymous]

I went through this and it was a pain. There is probably a transfer agent who records ownership (ask you dad who mails the dividend). You can go through them to update ownership. For me, it involved getting the back of the shares notarized and new shares issued. It is a pain and can be expensive if there is a reissue fee for new paper shares (you should be able to decline the paper shares)

[Anonymous]

Thank you, this is helpful.

[Anonymous]

He’ll have to report it on his college financial aid form, but I suppose 2k won’t make much of a difference.