How to gift stock to a child

Every route runs through an adult

A minor cannot open a brokerage account on their own, and a Beestow account requires its holder to be 18 or older. Whichever way you give, an adult handles the account side.

That makes the useful question practical: how much work does the gift create for the parent, and how much do you need from them up front?

Route 1: a custodial account

A UGMA or UTMA account holds assets in a child's name with an adult as custodian. The child takes legal control at the age of majority, which is 18 or 21 depending on the state.

It is opened with the child's Social Security number, so a parent or guardian is involved from the start. For anyone who is not the parent, that makes a one-off gift hard to do.

• Needs the child's SSN and an adult willing to be custodian for years.
• Irrevocable: money in a custodial account legally belongs to the child.
• Custodial assets can count in the child's financial-aid calculation, and income may be taxable to the child.
• You need the account details before you can give, so it cannot be a surprise.

The right route for steady gifting to a child you are close to, with the parents on board. If the point is for the child to own shares, this is the one to use.

Route 2: a market-linked gift a parent claims

You choose a company or fund and an amount from $20 up. You send the gift to the parent or guardian by email or text, or hand over a printable QR code. They sign in with a free Beestow account and claim it on the child's behalf.

While the gift is held, its tracked value follows the market price of the stock it is linked to. When the parent is ready, they complete a one-time identity check and transfer the cash value.

• From you: the parent's email address or phone number, or a printed QR code, and a payment method.
• No custodial paperwork, and no Social Security number is collected to send the gift.
• Gifts never expire, so there is no deadline to claim or to cash out.

Where the cash value can go

A parent or guardian can transfer the cash value to their own brokerage or bank account. When the gift is for someone under 18, an adult can also hold it on their behalf and transfer the cash value to the child's savings or a custodial brokerage account when they are ready.

A transfer to a brokerage account carries no cash-out fee. A transfer to a bank account carries a flat cash-out service fee. A processing spread applies to both, and the exact amount is shown before they confirm. Once the identity check is done, a transfer is typically initiated within one business day and arrives one to three business days after that.

What the child does and does not get

A Beestow gift is a claim against Beestow whose value follows the market price of a stock or fund. Beestow buys and holds its inventory itself and never custodies customer securities.

• The child does not own shares in the company.
• No dividend, voting or shareholder rights attach to the gift.
• Redemption is in cash only, and the cash value can be higher or lower than the amount you sent.

Gift limits and tax

For 2026 the IRS annual exclusion is $19,000 per recipient per calendar year.

How a redemption is treated for tax depends on facts we do not have about your family. Our tax guide sets out what we can say. None of this is tax advice, so check your own situation with a tax professional.

Which route fits

The deciding question is how much admin you are willing to create for the parent.

• You want the child to own shares and the parents are on board: a custodial account.
• You want a gift to arrive today with no paperwork for the family: a market-linked gift.
• You are not the parent and do not have their account details: a market-linked gift, sent to the parent.

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