Question by Master C: Can a mutual fund be transferred to another person, and if so what are the tax implications?
My grandmother wants to give me a mutual fund that she has had for many years. Can we do this and if so what are the tax implications, if any?
thanks in advance.
If she wills them to me, would they only come to me if she passed away. (I am in no way wishing that she does.)
Best answer:
Answer by Yardbird
She would have to sell her mutual fund shares and pay taxes on capital gains, if there are any. Then she could give you the money to buy fund shares, or she could buy fund shares for you.
She would have to pay a “gift tax” to the government on any gift amount over $ 12,000. Up to 12K is taxfree.
Or she could will those shares to you, and then there would be no tax consequences unless she gives you over a million or so in her will. (not sure the exact amount.)
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