TRADING IN A DECEASED PERSON'S ACCOUNT?

[antelopedundee]

Like most brokerages there is a provision to withdraw [or add if so desired] funds to a linked bank account so it could easily be done via that venue as opposed to trying to withdraw FROM the account. As long as it's all cash and no securities it seems like the bennie would then need a POD form since there won't be anything else to transfer. If he did withdraw from the account without contact the brokerage what could come of that?

 

[SAJ-99]

So if there is no penalty for someone selling positions in the account BEFORE notifying the brokerage that the account owner is deceased then what other ramifications would/could there be?

I'm not sure, but I thought there would be a change in cost basis when the account is transferred to the bene. I'm not sure if that happens at TOD or upon receipt of the paperwork or some other time. It may be an issue with the IRS later. Maybe some of the CPA's here have a more definitive answer.

 

[antelopedundee]

I'm not sure, but I thought there would be a change in cost basis when the account is transferred to the bene. I'm not sure if that happens at TOD or upon receipt of the paperwork or some other time. It may be an issue with the IRS later. Maybe some of the CPA's here have a more definitive answer.

If they would opt to transfer the assets in kind then their basis should be the value of the account or share price on the day of my demise. Thing is they don't want the hassle of owning the shares for a short amount of time. The smart thing is to sell them ASAP after I croak and let the tax burden go to my estate. Then they can just transfer the cash via TOD or POD whichever would apply. If I can execute all of this myself I'd just do it that way, but the selling after death is a consideration if I die in an accident or of a heart attack.

 

[Bonasababy]

No penalty. POD/TOD designation makes it non-probate property, thus not subject to will/trust/probate. It immediately becomes the property of the named transferee.

I believe this can vary by state. And these days I can say if it's with a large company if they find out the account can be locked up tight. You don't want that.