Transfer MarginAccount from JointAccount to LivingTrust. Worth it?

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

  1. prash


    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.[/QUOTE]
    Yes, the TRUST has been already created, and paid the attorney fees. Now, the last step is funding the TRUST, and moving assets into it.
    #11     Feb 10, 2019
  2. Robert Morse

    Robert Morse Sponsor

    Yes, the TRUST has been already created, and paid the attorney fees. Now, the last step is funding the TRUST, and moving assets into it.[/QUOTE]
    Look, I'm not an expert on this but have had to deal with a trust after a death of a family member. I thought the point of a trust was to take care of a minor or an adult that needs assistance, after the death of a parent or to avoid federal and state taxes above the current deductions. I don't get the point of a trust when your assets are under those hurdles or when there is a not a family member that is a minor or disabled and can't manage money.

    The trust I'm dealing with was valid 40 years ago but was not needed today.
    #12     Feb 10, 2019
  3. ironchef


    Perhaps he was talking about other type of Trusts. There is no extra brokerage fee or annual maintenance/reporting fees for a Living Trust.

    It is advisable to have an attorney set up your Living Trust. It typically costs a few hundred dollars if your financial situation is simple (no complicated limited partnerships, corporations, LLC...). Your brokerage treats your Living Trust account just like any personal account and can provide margins, you can trade options, naked and all.

    The main advantage of a Living Trust is, in California, after your death, your assets can transfer to your heirs per the instructions of the Trust and you don't have to go through probate court. California probate is very expensive, costs your heirs dearly and will tie up your assets a long time.
    #13     Feb 11, 2019
  4. Robert Morse

    Robert Morse Sponsor

    Except with the added cost of professional market data.
    So does a Joint Accounts With a Right of Survivorship and a Transfer on Death.
    #14     Feb 12, 2019
    drm7 likes this.
  5. ironchef


    ??? But that is the same whether you have a Living Trust or an individual trading account. You essentially manage the Trust yourself as Trustor, may need professional help only if there are significant updates.

    It will transfer to the survivor in a joint tenant account and won't have to go to probate. But I am not a lawyer, so don't know what happen if there is a challenge from heirs, whether that would go to probate court. The advantage of Living Trust is there are trustees who will administer the trust and so lessen court challenges. Another risk is what if both joint tenants pass away at the same time? It will definitely go to probate then.
    #15     Feb 12, 2019
  6. Robert Morse

    Robert Morse Sponsor

    Maybe you should review the NYSE/NASDAQ/OPRA definition of pro-market data. I'm only referring to the cost of market data.
    I'm not an expert on this and can't be responsible for your choices. I'm just telling you what I know. I know that courts support the wishes of the deceased. A joint account with rights of survivorship shows that the deceased wanted this. Same with a TOD. Any heir can fight whatever they want, but will they succeed?
    #16     Feb 12, 2019
  7. ironchef


    In states with a probate court the biggest advantage of a Living Trust is to avoid probate. Even with a will, you cannot avoid probate court. In California, probate trustees charge ~10% to 15%, if not more, of the assets under probate. Also, since they are court appointed and have tremendous power, heirs are under their mercy.
    #17     Feb 12, 2019
  8. ironchef



    All my accounts and assets are under my Living Trust, but I must say pro-market data is news to me. Schwab and my Estate Planning attorney never mentioned that to me?
    #18     Feb 12, 2019
  9. Robert Morse

    Robert Morse Sponsor

    I'm not trying to talk you out of your trust. I just would not do it unless my assets were well over $12mm.

    California Estate Tax
    California does not levy an estate tax on any estates, regardless of size.

    #19     Feb 12, 2019
  10. ironchef


    Last edited: Feb 12, 2019
    #20     Feb 12, 2019