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How Do You Include Stock Accounts in Your Estate Plan?

stock value line chart increasing

Many people are active participants in the stock market. Some have held on to high-value stocks for many years, hoping to someday pass them down to their children or grandchildren. You may be wondering, how can you include your stocks in your estate plan? Well, it’s simpler than you think. Our attorneys at DebnamRust, P.C. are here to explain.

Including Stocks in Your Will

You can leave detailed instructions for stock transfers in your estate plan. You may note how many shares of each stock should be transferred to which beneficiaries. However, the process of transferring the stock can differ depending on whether you use a will or trust.

If you leave the shares of stock to a beneficiary in a will, then they will have to go through probate. If you leave the shares through a trust, then they will not.

Does Texas Allow ‘Transfer on Death’ Designation?

In most states, residents can register securities with a ‘transfer on death’ designation, which means they will automatically be transferred to the named beneficiary upon their death. However, Texas does not permit this.

How to Split Shares Among Beneficiaries

It’s important to think thoroughly about how you want to distribute your securities. It’s often best to divide them evenly among beneficiaries. Because the values may change, it can be difficult to figure out the best approach. We won’t get into the numbers of everything, but here’s some advice on the best practices for dividing stocks in your estate.

Estate Planning Attorneys in Dallas

Our estate planning attorneys at DebnamRust, P.C. have dealt with various complex concerns regarding our clients’ estate plans. If you have additional questions about your stocks and how to best handle them in regard to your estate plan, our team has answers. We can help ensure that your assets are set up to be fairly distributed among your beneficiaries and give you peace of mind knowing you and your loved ones are prepared for the future.
 

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