Custodal account for minor- 1099-Div

[ripvanwinkle]

Back in the mid 80's I bought some stock (GE, Dell, IBM, Microsoft, Apple, few others) for my daughter when she was about 3 or 4 yrs old. I was listed as custodian of minor's account. Sometime about 2004 or so (can't remember when) I figured she should own the account in her name. She turned 18 in 2001. Can't remember if I signed any transfer papers. She eventually sold the shares to help buy a car after her's was totalled while parked on the street. She must have sold all before any dividends in MSFT were distributed I guess.

Over the years I would get a 1099-Div from American Stock Transfer for a few bucks for MSFT dividends and never thought anything about it. Each year I'd give her the paper and told her to do something with it to get it out of my name. She'd forget and I'd forget also to do anything about it also. I just got the 2014 1099-Div. The paperwork still shows the account as me as custodian. It now has 70.339 shares worth $3,334.46.

She got married in 2008 and I now have a 3yr old granddaughter. I called AST and got the transfer paperwork form today but was wondering if I can transfer/gift them into granddaughter name without them knowing about it. I want it to be a surprise when I die. Surprise!! 20+ yrs of reinvested dividends. Who knows how much it would be worth! Like compound interest.  

Can I transfer with out them knowing about it?

[The Virginian]

Put the account in your name and put her name on it as the joint owner of the account. Since you will be the one receiving any statements no one will know until you are gone. Make sure you have the account somewhere so they find it when they go through your estate papers (maybe with your will)

[ripvanwinkle]

I need to make a correction. The AST 2014 1099-Div statement is for reinvested dividends. The dividends are not dispersed to me. 

Also, the more I think about this, the only way I think to get my granddaughter the shares is to have my daughter claim account to be the custodian or transfer them to me as a gift then have me as custodian. After all, legally she does own the shares. They are her shares. And I wouldn't have to claim the taxes of the 1099-Div each year on my return. Hmmm...