I always liked the idea of buying an investment for young children instead of a traditional gift. It seems that they will get plenty of toys from others, and as a parent I know that there are often too many and they clutter the house. Meanwhile, for the first 5-10 years they're too young to realize they're getting one less toy. While something like stock has a huge amount of time to appreciate.
When an old friend had his first child I talked him into setting up a UTMA with himself listed as the custodian so that I could buy the child a share of Tesla for his first birthday. It worked, but it took 3 months of trying to follow up with him to get the paperwork filed to open the account. Meanwhile, the stock I bought for the child for birthdays 2 and 3 are still sitting in my account as I'm waiting to find out the child's account number to do the transfer. So going this route is not something I really want to do again; it seems like there's just too much hassle for both parties.
I have other friends who are having kids now and I'd like to continue giving stock as a gift, but I don't want to inconvenience them or get stuck with shares belonging to several different people in my account with no easy way to know what belongs to who. Is it possible to continue this stock-gifting tradition in some other way?
I understand that I could be listed as the custodian on a UTMA, which simplifies some of this. However, the parent would need to give me sensitive information, such as the child's social security number, which is awkward to ask others to share.
I know that What things do I need to consider if I want to gift units of a fund or stock to some one who is not related? is similar, but that question assumes the recipient already has an account setup.
If it matters I, and (almost) all the recipients, are residents of Pennsylvania.