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Hi, I'm looking for the tax implications of gifting stock to my children and establishing a trust to gift
additional stock in ensuing years. What are the tax consequences / benefits?


As long as the gift to each person is 10,000 (you and your wife can give 20,000) or less each year there are no taxes do.

The basis of the stock is what you paid for it or the current market value, whichever is less. If the stock is inherited the basis is the market value.

If you give more than the 10,000 it reduces the 625,000 estate tax exemption. After the 625,000 you pay a gift tax.

If you put the stock into a trust and the children can not take it out you do not get the 10,000 exemption. If they can take it out, say in the first month after the gift, but not after that you get the 10,000 exemption.
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