Stock Option Gifting

The transfer of stock options to family members presents an especially powerful opportunity to transfer significant wealth and also to reduce the risk of stock concentration. And, depending on your circumstance, there are many layers of discounts that may be applied to stock option gifts.

Leveraging stock option gifting enables you to shift all future appreciation to the donee while you retain the income tax burden upon exercise. Because your payment of this income tax from the exercise is not considered a further taxable gift, substantial wealth can be transferred without application of previous gift or estate taxes.