<prompt> Human: My wife and I just had our first child and my in-laws would like to start gifting her stock to pay for college, grad school, etc. This is an incredibly nice thing to do for our daughter and for us. I expect that they will gift 12k - 25k per year for the next couple years. Obviously they are very nice people. Right now, it sounds like they will be gifting shares in two companies to help rebalance their own portfolios think BMY and KRFT. They have asked if this allocation is ok with us. Which brings me to my question. We feel that if they want to gift these two stocks, then well take it and be very very grateful. Period. ... However, part of me is worried about how we manage these two stocks as time goes on. My wife and I already decided to invest in index funds rather than pick stocks because we dont think we can outsmart the market. One option is to accept the stocks, sell them off and shift into index funds or some more balanced mix. My wife is sensitive about doing this because the stocks they give us might wind up performing better than the index fund and we lose value to the transactional costs and capital gains taxes.My wife and I primarily me will be directing my daughters finances including these investments until shes an adult. So at some point I am responsible for those investments and not the in-laws who gifted them. At that point, I feel like it would be irresponsible to keep her in investments that I wouldnt make for myself. How would you deal with this? A Dont rock the boat and just be grateful - Keep your mouth shut, accept whatever they want to give and plan to never sell the stocks until my daughter is old enough to decide for herselfB Accept whatever they want to give, but once it is in our control, shift it into investments we are more comfortable withC When they ask do you mind if we give these two stocks say thats nice but what would be better is if you gift X, Y, Z, etc.EDIT: Thanks for all the thoughtful answers!  <response>: If the grandparents intent is to pay for higher education, then a 529 account is the obvious way to go here, IMHO. Seems like they want your input, since they asked. 