Last minute gift idea: stocks under the tree

Instead of gifts of money - shares under the Christmas tree
Instead of gifts of money – shares under the Christmas treeimago images / Joko

Christmas is just around the corner, most stores are closed due to the lockdown – what to do if a present is still missing? Anyone who wants to refrain from putting a bag of bath salt from the drugstore or a can of cough drops from the pharmacy under the Christmas tree can give away shares. In times of closed boutiques and low interest rates, a block of shares is a smarter gift than cash or a savings account.

A prerequisite for a share gift is a securities account, both on the part of the giver and on the part of the recipient. If the latter does not have a custody account, he must first open one – with direct banks and online brokers, this can now be done quickly using the video identification process.

As a result, the surprise effect is flat. On the other hand, the giver of course does not have to reveal which shares he intends to transfer. If the securities are intended for a child, the surprise is saved: Parents are allowed to open custody accounts for their children.

Shares in chocolate and wine manufacturers

The giver must first buy the shares that are supposed to be under the tree or in the depot at Christmas and then transfer them to the recipient’s depot. Warning: The former should definitely inform his bank in advance that it is a gift and not a sale. The withholding tax is due when shares are sold, but not when they are given away.

When choosing the right title, different considerations can play a role: Does the recipient particularly like a company or an industry? For example, if he collects sneakers, shares in Puma or Adidas could be a good idea. If he likes chocolate or wine, stocks in chocolate manufacturers or winemakers are worth considering. Some of these pay their shareholders a so-called dividend in kind.

Instead of money, there is a case full of chocolates or a box of Riesling once a year. Football stocks are a nice gift for fans, at least if they come from the right club. Only Borussia Dortmund is listed among the German clubs. If the recipient of the shares is very concerned about climate protection, they may be happy about titles from the renewable energies sector.

Note gift tax

If you do not want to give away individual values ​​for risk reasons, you can take fund or ETF units instead. The transfer from deposit to deposit works in the same way as with stocks. If you give away shares in funds that you had already placed in your custody account before 2009 – i.e. before the withholding tax was introduced, price gains of up to 100,000 euros are tax-free. Depending on who the blessing is to go to, however, gift tax may apply. For unregistered partners, the tax exemption is 20,000 euros, for spouses and children it is significantly higher.

Unfortunately, fund and share gifts that are digitally transferred from depot to depot do not look very much. Paper share certificates, so-called “effective units”, have not been tradable for some years. Anyone who does not want to give away shares primarily as an investment but as a hobby can purchase jewelry shares.

These elaborately designed papers are available from special dealers or directly from companies. If it is not a historical title, jewelry stocks are definitely valid, so they can be turned into cash at the bank. However, they gain in value not so much through price increases, but rather through their often limited edition. Many jewelry stocks become coveted collectibles over time.


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