Len:
Solve your deceased member issue by having your brokerage
firm issue a cashier's check in the amount of the payout
payable to the deceased's estate. Have the brokerage firm
mail the check to his last known address. If it comes back
to the brokerage firm as undeliverable, it becomes their
problem to deal with the state agency accepting abandoned
property.
Then close the brokerage account on the same day so no
further deposits can be made.
Jack
Leonard J Delmolino on
Jack,
Thanks for the suggestion. This sounds like a nice approach
but our broker has discontinued Cashier's Checks.
But this got me thinking of another alternative. Open a bank
business checking account that pays little or no interest
using our club's EIN. Transfer our deceased partner's assets
to that bank account, and close our brokerage account. Make
a check out to our deceased partner's estate using the new
bank account. Closing the brokerage account would also end
the automated payments that we are getting from our deceased
partner.
This sounds like a workable scenario. Does anyone see a
concern with this approach? Thanks!
Len Delmolino
Massachusetts High Flyers Investment Club
DrDave on
On advice from a CPA, we did something similar.
We had a member that vanished. I tried all ways to contact, without success.
So we opened an additional account at the brokerage (under my same login, which is super easy), a non-interest bearing account (no sweep), and transferred that member's funds to there. I gave the account a nickname of something like: "Held In Trust for GeorgeG".
The CPA has the opinion that after "maybe 5 years" of not finding that member, kin, nor heirs, that we could reclaim the funds. CPA strongly advised that the holding account not earn any gains at all, as that would make the accounting more complicated.
Our situation is a little bit different than yours, as we are not closing down the club.
Best,
Dave Nathanson
Treasurer
Hawaiian Shirt Society
> On Nov 12, 2024, at 6:19 PM, Leonard J Delmolino via bivio.com <user*27879700001@bivio.com> wrote:
>
> Jack,
>
> Thanks for the suggestion. This sounds like a nice approach
> but our broker has discontinued Cashier's Checks.
>
> But this got me thinking of another alternative. Open a bank
> business checking account that pays little or no interest
> using our club's EIN. Transfer our deceased partner's assets
> to that bank account, and close our brokerage account. Make
> a check out to our deceased partner's estate using the new
> bank account. Closing the brokerage account would also end
> the automated payments that we are getting from our deceased
> partner.
>
> This sounds like a workable scenario. Does anyone see a
> concern with this approach? Thanks!
>
> Len Delmolino
> Massachusetts High Flyers Investment Club
>
Bob Mann on
you don't get to keep the funds, they aren't yours. They have to be turned over to the state as unclaimed funds.
We had a member that vanished. I tried all ways to contact, without success.
So we opened an additional account at the brokerage (under my same login, which is super easy), a non-interest bearing account (no sweep), and transferred that member's funds to there. I gave the account a nickname of something like: "Held In Trust for GeorgeG".
The CPA has the opinion that after "maybe 5 years" of not finding that member, kin, nor heirs, that we could reclaim the funds. CPA strongly advised that the holding account not earn any gains at all, as that would make the accounting more complicated.
Our situation is a little bit different than yours, as we are not closing down the club.
We had a member that vanished. I tried all ways to contact, without success.
So we opened an additional account at the brokerage (under my same login, which is super easy), a non-interest bearing account (no sweep), and transferred that member's funds to there. I gave the account a nickname of something like: "Held In Trust for GeorgeG".
The CPA has the opinion that after "maybe 5 years" of not finding that member, kin, nor heirs, that we could reclaim the funds. CPA strongly advised that the holding account not earn any gains at all, as that would make the accounting more complicated.
Our situation is a little bit different than yours, as we are not closing down the club.
On Fri, Nov 15, 2024 at 12:37 PM, DrDave via bivio.com
<user*34979900001@bivio.com> wrote:
On advice from a CPA, we did something similar.
We had a member that vanished. I tried all ways to contact, without success. So we opened an additional account at the brokerage (under my same login, which is super easy), a non-interest bearing account (no sweep), and transferred that member's funds to there. I gave the account a nickname of something like: "Held In Trust for GeorgeG".
The CPA has the opinion that after "maybe 5 years" of not finding that member, kin, nor heirs, that we could reclaim the funds. CPA strongly advised that the holding account not earn any gains at all, as that would make the accounting more complicated.
Our situation is a little bit different than yours, as we are not closing down the club.
Best, Dave Nathanson Treasurer Hawaiian Shirt Society
> On Nov 12, 2024, at 6:19 PM, Leonard J Delmolino via bivio.com <user*27879700001@bivio.com> wrote: > > Jack, > > Thanks for the suggestion. This sounds like a nice approach > but our broker has discontinued Cashier's Checks. > > But this got me thinking of another alternative. Open a bank > business checking account that pays little or no interest > using our club's EIN. Transfer our deceased partner's assets > to that bank account, and close our brokerage account. Make > a check out to our deceased partner's estate using the new > bank account. Closing the brokerage account would also end > the automated payments that we are getting from our deceased > partner. > > This sounds like a workable scenario. Does anyone see a > concern with this approach? Thanks! > > Len Delmolino > Massachusetts High Flyers Investment Club >
David Karbulka on
I think the term "maybe 5 years" tells you all you need to know about the quality of that advice
On advice from a CPA, we did something similar
We had a member that vanished. I tried all ways to contact, without success.
So we opened an additional account at the brokerage (under my same login, which is super easy), a non-interest bearing account (no sweep), and transferred that member's funds to there. I gave the account a nickname of something like: "Held In Trust for GeorgeG".
The CPA has the opinion that after "maybe 5 years" of not finding that member, kin, nor heirs, that we could reclaim the funds. CPA strongly advised that the holding account not earn any gains at all, as that would make the accounting more complicated.
Our situation is a little bit different than yours, as we are not closing down the club.
Best,
Dave Nathanson
Treasurer
Hawaiian Shirt Society
> On Nov 12, 2024, at 6:19 PM, Leonard J Delmolino via bivio.com <user*27879700001@bivio.com> wrote:
>
> Jack,
>
> Thanks for the suggestion. This sounds like a nice approach
> but our broker has discontinued Cashier's Checks.
>
> But this got me thinking of another alternative. Open a bank
> business checking account that pays little or no interest
> using our club's EIN. Transfer our deceased partner's assets
> to that bank account, and close our brokerage account. Make
> a check out to our deceased partner's estate using the new
> bank account. Closing the brokerage account would also end
> the automated payments that we are getting from our deceased
> partner.
>
> This sounds like a workable scenario. Does anyone see a
> concern with this approach? Thanks!
>
> Len Delmolino
> Massachusetts High Flyers Investment Club
>