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gifting stock & complicated question

SunAndRainSunAndRain member
in Working Moms

I want to give my niece stock.  When I mentioned this to my mom she told me to wait, that it might mess up her chances of getting financial assistance.

 Niece is young, has a year old child with medical problems (no definitive diagnosis yet but it is relatively serious), and is going through a messy divorce.  She is working, making not much over minimum wage.  I figure her tax liability would be near to nothing.  I don't believe she is receiving any financial assistance from the government at this point.  Court-order child support has been unreliable at best.

My mom thinks me giving her this money will impact her financial assistance.  She said I should just send her money, and take it out of the stock.  Basically it is about $4k worth of stock.  I have zero idea of the cost basis. I know that MY tax bracket is considerably higher than my nieces'.  I'd rather my niece get the money than Uncle Sam (there, I said it).

I'm not so sure that this gift will impact my niece's assistance given how little income she has.  I don't even know who to ask or what questions to ask.  I can ask our tax advisor...but how can she advise me on my niece's situation? 

Any insight to help me make sense of all this? 

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Re: gifting stock & complicated question

  • Avion22Avion22 member
    Your tax advisor or financial advisor should be able to answer basic questions even without a full picture of your niece's financial situation.  I'd start there.  

    If it were me, I'd probably just give money.  If she's young and struggling, she probably won't be able to do much with just stocks. She probably won't want to manage them herself, and probably can't afford someone else to manage them for her.  Making that money liquid if she needs it could be a big hassle for her.  I get that stocks could be much more useful and lucrative for her in the long run, but it might be more trouble than it's worth for her right now.


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  • SunAndRainSunAndRain member
    Thanks. I'll start with my tax advisor.

    FWIW, I did have a discussion with my niece about her options for using this money. I wanted her to realize that the decision was ultimately hers and that there would be no more stock as I was giving her all of it. But I certainly didn't ask her about her income although she shared her hourly wage with me.
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