Can I put stock from Incentive Stock Options in a revocable trust?

March 10, 2004

Subject:   Holding Period
Date:   Thu, 19 Feb 2004
From:   Diana

If someone purchases an ISO and is holding to qualify for the tax preference – can he put the shares in a revocable trust?

Thank you!!


Date:   Thu, 04 Mar 2004

Hello Diana,

Yes. A revocable trust is a “disregarded entity” for income tax reporting purposes, so the grantor is considered to continue owning the stock.

Good luck!
Mike Gray

For more information about incentive stock options, request our free report, Incentive Stock Options – Executive Tax and Financial Planning Strategies.

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