Designate and Donate — Stocks and Investment Accounts

Ask the brokerage or mutual fund custodian for a T.O.D. form. Some companies also call these beneficiary designation forms.

How It Works

• Contact your broker or investment account holder about a T.O.D. (Transfer on Death) or beneficiary designation form for mutual funds or other types of investment accounts. You can also transfer a single stock certificate. Ask your broker or call our office for details.

Benefits

• You receive an income tax deduction for the fair market value of the securities on the date of transfer, no matter what you originally paid for them.
• You pay no capital gains tax on the transfer when the stock or share of investment account is sold.
• You keep control of the account during your lifetime.

Stocks and Investment Accounts: You've Planned for the Future

Investment accounts hold cash or stocks for the long term. You may have a mutual fund or a brokerage account, which is held at a financial institution. The objective of these accounts is to achieve long-term growth, provide future income or preserve capital. After your passing, the remaining account balance may be transferred to heirs or charity.

When you opened the account, you should have received a form that tells the financial institution what to do with the assets when you pass away. This form is called a "Transfer on Death" (T.O.D.) form. With it, you decide how your assets will be transferred. If you do not complete this form, you will cause unnecessary confusion among your heirs and added expense to your estate administration.

Keep it simple. Ask the account custodian for a T.O.D. form, complete it, and share it with your financial or legal advisor. You can leave all or a percentage of the assets to Dana Hall. Any portion of your investment account left to us after your passing will reduce your estate tax burden. Your estate avoids paying any capital gains on assets that have increased in value over the years!