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GoldenMember
Registered: Aug 2012
Posts: 257 |
09-26-12 07:19 AM
Try a more accurate thread title I.E. How to Set up Living Trust Account?
It may get the attention of Robert Green, probably only persons advice on ET I would trust regarding taxes.
Always best to seek professional advice than trust your tax planning to a message board
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starvingtrader
Registered: Aug 2008
Posts: 31 |
09-26-12 07:27 AM
Try a more accurate thread title I.E. How to Set up Living Trust Account?
The thread title was accurate. I am not looking for advice on how to set up an account. I know how to do so.
It may get the attention of Robert Green, probably only persons advice on ET I would trust regarding taxes.
My question had nothing to do with taxes in any way.
Always best to seek professional advice than trust your tax planning to a message board
I wasn't trusting anything to a message board. I was simply soliciting people's experiences.
My question had nothing to do with taxes in any way.
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rallymode
Registered: Dec 2005
Posts: 1325 |
09-26-12 12:16 PM
Quote from starvingtrader:
Hi,
I was wondering if anyone has had any bad experiences with either setting up or trading through a trust account.
1) If I change my individual account to a trust account, could this be done while maintaining my open positions (stock and option trades that I hold for 3-60 days)? or is it best to go into cash for a couple of weeks just for account for paperwork problems?
2) Anyone have any experience with a trust account through OptionsHouse specifically?
3) Are there any restrictions on stuff (like margin, shorting, etc) that are common with non-individual accounts?
4) Does a trust have to pay any special fees (e.g. Professional Subscriber data fees)?
5) Are there any random problems people have had?
thanks
1. Generally you will need to fund the trust account as a new account at opening with cash, positions cannot be transferred. Unlike switching a bank account title where they just switch the ownership.
2. no but i have opened trust accounts with IB, Advantage and RJO
3. none, however all activities need to be spelled out in the trust
4. no, you are still retail
5. well it's likely that if there are problems they would occur when your successor trustee has to step in and take control, havent been in that situation yet thank god. 
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clerk
Registered: Mar 2011
Posts: 36 |
10-11-12 12:05 AM
Working at an introducing broker-dealer, I have opened many trust accounts at many custodial brokers with no issues. Just have the right supporting documentation (pages from trust agreement/declaration stating the name of the trust, the settlors, and the trustees; the page stating the date of the trust, and the execution/signature pages) and account paperwork (brokerage firm proprietary Trustee Certification of Investment Powers, duly executed by all presently-serving trustees).
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starvingtrader
Registered: Aug 2008
Posts: 31 |
10-11-12 01:06 AM
What if it is a DIY trust (such as one made from LegalZoom, etc). Would a brokerage firm decline the application? I don't have one of those, but am just curious.
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comintel
Registered: Jun 2008
Posts: 1077 |
10-11-12 02:31 AM
Quote from starvingtrader:
What if it is a DIY trust (such as one made from LegalZoom, etc). Would a brokerage firm decline the application? I don't have one of those, but am just curious.
Judging by conversations I have had with brokers, some would decline, because they are uncertain whether the trust will be valid.
If you ask them any questions whatsoever they will usually take that as a sign that you do not know what you are doing and will tell you to get a lawyer.
This was for a pension trust though, not a living will.
Also, they will often ask supplementary questions such as "under what section and paragraph of the CEA are you claiming exemption from CTA registration" etc. and it may be hard to answer these on your own.
For a simple living will, though, they might accept it, or possibly you could get a store front lawyer to do one cheaply.
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