Guides / How to gift stock to a grandchild
How to gift stock to a grandchild
If you hold shares yourself, giving some to a grandchild feels like it should be easy. It is not, because a minor cannot hold a brokerage account alone and the parents have to be involved. Here are the realistic routes and what each asks of them.
A Beestow gift is a claim against Beestow whose value follows the market price of a stock or fund. Recipients cash out to their bank or brokerage.
Last reviewed November 2026
A parent is part of every route
A child cannot open a brokerage account on their own, and a Beestow account requires its holder to be 18 or older. Whichever way you give, the parent or guardian handles the account side.
So the useful question is practical: how much work does the gift create for your son or daughter, and how much do you need from them before you can send anything?
Route 2: a custodial account
A UGMA or UTMA account holds assets in a child's name with an adult as custodian. It is opened with the child's Social Security number, so a parent or guardian starts it, and the child takes legal control at 18 or 21 depending on the state.
Money in it legally belongs to the child and cannot be taken back. Custodial assets can count in a financial-aid calculation, and income may be taxable to the child.
The right route for steady gifting to a grandchild you are close to, with the parents on board. If you want the child to own shares, this is the one to use.
Route 3: a market-linked gift a parent claims
You choose a company or fund and an amount from $20 up, and send the gift to the parent or guardian by email or text, or hand over a printable QR code at a birthday. 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 to their own brokerage or bank account, or to the child's savings or custodial account.
- 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 the parent can claim it and cash it out whenever the family is ready.
How cashing out works
A Beestow gift is a claim against Beestow whose value follows the market price of a stock or fund.
- 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.
- The cash value can be higher or lower than the amount you sent. Nothing about it is promised.
Gift limits and tax
For 2026 the IRS annual exclusion is $19,000 per recipient per calendar year, and that applies to each grandchild separately.
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 parents.
- You want your grandchild to own shares, and the parents are on board: a share transfer or a custodial account.
- You want a gift to arrive on the day with no paperwork for the family: a market-linked gift sent to a parent.
- You do not have the parents' account details: a market-linked gift, since all you need is an email address or phone number.
