Transfer MarginAccount from JointAccount to LivingTrust. Worth it?

Discussion in 'Trading' started by prash, Feb 9, 2019.

  1. prash

    prash

    I have a MarginAccount with Tdameritrade, with JointTenant with right of
    Survivorship(JTWROS) for CA State.
    Wondering, if I there is any disadvantage into moving this into a livingTrust, in terms of liability etc?

    Looking for suggestions, and reasoning for 1.) vs 2.):
    1.)Keep Account as-is, as in JointAccount
    2.)Move Account to LivingTrust
     
  2. drm7

    drm7

    JTWROS is pretty good, for estate purposes. I was helping my mom convert a JTWROS after my dad died, and it just took a death certificate and another form to fill out. It was still a bit of a pain though. (This was in Pennsylvania)

    A revocable trust is VERY clean, for estate purposes - the trust company does all the work for you. The drawback is an extra layer of fees to pay the trust company to maintain the trust account. There MIGHT be trading restrictions as well, depending on how the trust is structured.
     
  3. Robert Morse

    Robert Morse Sponsor

    On a side note, a Joint account will likely qualify as non-pro while a Trust does not. The cost of market data for the trust will be $1200 to $3000 a year more.
     
    drm7 likes this.
  4. prash

    prash

    Wha
    What kind of fees for this REVOCABLE living trust with me as a grantor? I have moved bankAccounts, and other assets under livingTrust as a grantor, and never heard of even a penny extra in fees. I understand TRUST is a pass through entity. Am i missing something here?
     
  5. prash

    prash

    What do you mean by *Market Data*, and it's cost? Can you pls clarify.
     
  6. Robert Morse

    Robert Morse Sponsor

    When you trade equities, you need live market data. You do not know what market data is?
     
  7. prash

    prash

    I do trade equities and options with ThinkorSwim platform, but never need to pay for live market data.
     
  8. Robert Morse

    Robert Morse Sponsor

    But you will with a Trust or entity. They are not a natural person do not qualify as non-pro. That was my point. From TD website.

    upload_2019-2-9_18-45-48.png
     
    Pekelo likes this.
  9. drm7

    drm7

    What kind of fees for this REVOCABLE living trust with me as a grantor? I have moved bankAccounts, and other assets under livingTrust as a grantor, and never heard of even a penny extra in fees. I understand TRUST is a pass through entity. Am i missing something here?[/QUOTE]

    Unless your broker absorbs these costs, you need an estate attorney to draw up the trust documents. If your broker subsidizes this, then all the better for you.

    https://info.legalzoom.com/average-cost-prepare-living-trust-26932.html
     
  10. prash

    prash

    Thank you. This info is useful.
     
    #10     Feb 10, 2019