Those who have invested in stocks can simply pass them along as they would any other property as part of a will. Just as a person can declare who will get a home, automobiles, jewelry, collectibles, sentimental items and anything else, they can specify how their stocks will be distributed after death.
For example, the person might want to leave the tangible property to a spouse but the stocks to their children and grandchildren. They can state that in the will. This is useful because it accords the person control of how the assets are shared..
Another way to transfer stocks is through naming a transfer on death beneficiary. In this way, you can leave it to one person or to as many as the person chooses with them sharing it equally or unequally.
A transfer on death designation can be revoked or changed at any time in your life and the beneficiary has no say in the matter.
A third option involves placing the stocks in a trust.
The key advantage to placing stocks in a trust or subjecting them to a transfer-on-death designation is that doing so keeps the stocks from going through the probate process.
Those who own stocks should know their options
Investing wisely is a smart way to build wealth. This is true for those who are experienced in the market and people who are just starting out using some of the new tools that can let people who previously did not invest but are now building a portfolio. Just like any other asset, it is important to protect it and to make sure it goes where you want it to after you are gone.