Dispersing stocks to members
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Dispersing stocks to members Hello, My club is comprised of retired teachers who have been together for 20 years. Although not at the point of disbanding completely, we are considering dispersing stocks one at a time among all. I guess that would be considered a partial withdrawal for each member. We now have 11 members but have stocks in 32 companies. We thought that we would disperse one stock every 3 or 4 months a year. In the next couple of years we may disband and so we are preparing. Do you have any advice on whether this is a good idea and any pitfalls of which we should be aware. I have been reading about the tax implications but in each case it would be just a transfer of stock which would not involve any premature sales but some cash if there are fractional shares involved. Thanks, Liz While I might not be an expert, I would think i would be very complicated to disburse shares of the stocks in your portfolio. I am not even sure how expensive it would be. I think it would be much simpler to wait until the club disbands, liquidate the portfolio and then do the payout. If the club is going to disband and you think the tax bill would be too great to liquidate the portfolio all at once, then liquidate over time. But if you are thinking that the partnership dissolution will occur in a couple of years, then I would get started right away. Peter DunkelbergerOn Mon, Nov 13, 2017 at 2:27 PM, Liz Schambach via bivio.com <user*16341100001@bivio.com> wrote:
I dispersed stocks to a departing member whose account was with a different broker. There was no charge to our club from TDAmeritrade and the member received J&J at $115 while club bought it at $59 saving a capital gain of $56 a share to club However in reading Bivio help I believe the remaining members when the club disbands will be accessed the capital gains. We have thought of dispersing AAPL with a cost of $14 to present members but also want to know how this would be taxed. Our club is 20 yrs old and we have some huge paper gains Cindy Gerke Cole's River Investment Group. On Nov 13, 2017 2:28 PM, "Liz Schambach via bivio.com" <user*16341100001@bivio.com> wrote:
Our women's club had been together 22 years when our founding member passed away at 86 this past summer. I had taken over the financial role several years ago, hosting the audit, and filing the taxes, etc. We all decided to disband after she died. I could not have done this without Laurie Frederickson. We wanted to transfer stocks to avoid large capital gains. She walked me through all of the steps and it was all accomplished with her help, bivio support and Folio Investing support. It took several patient weeks waiting for dividends to be paid, making sure the broker account matched with bivio for all the cost basis'. We did have to sell some shares to make sure everyone received the correct valuation. Folio Investing transferred fractional shares too which helped a bunch. Rely on the knowledge of Laurie and bivio! Hooray for the kudos to Laurie. Let's all hope she is locked into a long term contract with bivio. Steve Foster Circle of Friends Investment Club On Saturday, December 2, 2017 4:11 PM, Susan J Mueller via bivio.com <user*15197400001@bivio.com> wrote: Our women's club had been together 22 years when our founding member passed away at 86 this past summer. I had taken over the financial role several years ago, hosting the audit, and filing the taxes, etc. We all decided to disband after she died. I could not have done this without Laurie Frederickson. We wanted to transfer stocks to avoid large capital gains. She walked me through all of the steps and it was all accomplished with her help, bivio support and Folio Investing support. It took several patient weeks waiting for dividends to be paid, making sure the broker account matched with bivio for all the cost basis'. We did have to sell some shares to make sure everyone received the correct valuation. Folio Investing transferred fractional shares too which helped a bunch. Rely on the knowledge of Laurie and bivio!
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