Setting up LLC / C-corp to hold stocks?

Long story short; there are 4 of us siblings and our uncle has some stocks and mutual funds that he bought in our names 20+ years ago that he now wants to fully transfer over to us and get his name off the assets. The stocks and mutual funds are only in 2 of the 4 siblings names though so given that and tax implications, we were thinking of setting up and LLC to hold the assets. Apparently all of it combined is worth roughly $100k in predominately Microsoft and Starbucks stock and idk the mutual/index fund or the proportions as to how much is in each. Questions are:

  • Is this a viable option? What would be the alternative options in order to equally distribute the assets among the 4 siblings? (keeping in mind, the assets are only in 2 of our names).

  • Would an LLC be more advantageous than a C-corp? I have a general understanding of the differences between the two but wondering if anyone can shed light on the intricacies in this specific situation? We are leaning towards an LLC based on our limited knowledge.

  • How would the transfer exactly work? I.e. lets say siblings A and B are the ones with the assets in their name; would A and B first have to transfer the assets to them personally and then to the LLC?

  • What would be the tax liability of the LLC, if any? From my research, only the person giving the gift is subject to a gift tax? I assume the LLC would have to pay taxes on any dividends each year?

  • If I'm reading this correctly, mutual funds can only be gifted to beneficiaries?

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  • I would think a trust would be more like what you're looking for. Ownership of the assets would move over to the trust and a trustee manages the assets and the trust determines any payouts and who gets what when. Not really super knowledgeable about that topic but it sounds closer than a corp. Corps and LLCs are for business structures. I'm not even sure you could form then without an active business.

    Really you should find a good fee-based financial advisor who can go over options with you.

  • You need to talk to a CPA and possibly an estate attorney.

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