I can't believe this. I just talked to my lawyer yesterday to update my will and tend to minor stuff. Anyway, it seems that almost EVERY BROKER has a way of letting you assign a beneficiary to your brokerage account. If you die, the funds in the account transfer on death to whoever you want, in whatever percentage you want to the named beneficaries. Kind of normal don't you think? Well not so with IB. Oh no, they don't offer that service. Only allowed with IRA accounts. You can play games and setup joint accounts that, but even they only allow ONE other named party besides you. This means that when you die, your accounts with IB will go through probate, costing thousands of dollars in fees that are TOTALLY UNNECESSARY. My lawyer says there is no way to avoid this from happening, unless the broker allows beneficiry assignment. Am I the only old fart around here that cares about this? ***************** Any suggestion? Ideas? Alternate discount brokers that allow beneficiary assignments? *************** I'll dutifully notify IB and request a "modification", but I think this is a crock!!!
I've had problems with IB before, I feel for you man. I've given my wife all my IB account details so she'll be able to wire out the money in case of my untimely demise. Good luck..
This is what I did. I love IB but they have some assinine business practices. If I croak the funds go directly to our joint bank account and no one will be the wiser -- I hope.
I've never heard of a "beneficiary" to a brokerage account other than an IRA. Maybe it's just me. Or then again, maybe it's you and your lawyer. That said, you could put your money in an LLC, and then set up these so-called beneficiaries as members of the LLC. You would be the managing member, so you would control the funds. You would need a lawyer to set this up for you. There is also a thing called a "family limited partnership", very similar to an LLC. OldTrader
So we have to fraudulently transfer funds to accomplish what should be an legal smooth transfer. I can live with that! Thanks for the pat on the butt, guys. But I'm still looking for better way, if it exists.
oldtrader, I could do a trust also and accomplsh what I want. But it' s another tax form to fill out every year. If that is wha i have to do I'll do it. But I'm still mad. TDAmeritrade, Edward Jones are two brokers that assign. I know there are more that do, but what about deep discount brokers?
Oh yeah, one more thing - IB doesn't let you transfer anything but cash from one account to another. So you have to either liquidate your positions or wait for them to close before you transfer. And don't forget the 10k minimum to establish a new account. Give me a break.
Yucca, you are an idiot. IRAs are the only accounts you can typically designate benes on outside of trusts. Your only other option is some form of joint teneant account.
OK, if Ameritrade and E. Jones really do it, then switch your account there. But again, I've never heard of a setup of this type. Think about this for a minute: when you die, unless the assets go to a joint holder, then your asset are potentially subject to estate tax, depending on whether the total exceeds the deductible prevailing at that time. So this beneficiary thing sounds like it defeats the estate tax and yet still permits you to give away your assets. I'm not saying you can't do it. I'm just pointing out something that seems to be inconsistent. I've had alot of brokerage accounts and never seen one that offered what you're suggesting here. In any case, the LLC accomplishes what you want legally. So does a family limited partnership. In fact, they can help alot with asset protection and estate planning. Yeah, there's another form. My CPA does that, I don't. OldTrader