Stocks (common and preferred) can be divided into two categories:

• Common stocks that are publicly traded on an exchange or over-the-counter.
• Privately held common shares that are owned by a small number of shareholders.

Publicly held stocks are usually easily valued when making a gift. The mechanisms for making a gift of stocks are presented in the section titled Outright Gift.

Privately held stocks (common and preferred) are more difficult to value. Because there may be problems with valuing, it is suggested that you contact the Development Office for advice, if you are considering this type of asset for a gift. There are excellent reasons for considering this type of gift, reasons that reduce income taxes and estate taxes.

Furthermore, using this type of gift may substantially reduce estate taxes and possibly save one from selling a large number of shares to pay the estate taxes, in effect retaining control of the corporation in the hands of the heirs.