Problems with a deceased mmember's withdrawal
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We are looking for some suggestions on how to handle the withdrawal and other issues related to the death of one of our members Our club president passed away in mid-August. I am now the new president of the club. Our club is now down to three member and so we have decided to disband. So far we have processed our deceased member's withdrawal. We have also stopped future member payments and have just sold our stock in preparation to disband the club. We plan to make all final member payments by the end of the year. We plan to file our final tax return during the tax season for 2025. But here are the problems we are dealing with. Our deceased member did not have a will and no one has been identified as representing his estate. * We mailed a withdrawal check to the deceased member's address but the mail was returned to the club treasurer. * We continue to get automatic monthly payments to our club brokerage account from our deceased member's personal account. So here are our questions - * What should we do with deceased member's withdrawal check? How can we deliver it to the estate? * How can we stop our member's automatic contributions (our brokerage, Fidelity< seems unable to identify the source of these contributions)? * Can we disband our club and file a final tax return if the above issues are not resolved? We are wondering if any other clubs have had a similar situation and how did you proceed. Thanks in advance for any suggestions! Len Delmolino Massachusetts High Flyers Investment Club It did not say how long you had the club? What we did when disbanded was transfer stock to each member to avoid all the capital gains. I do not think you can close the club account since their stock will still be in it. You might have to contact a estate lawyer. Did the club have a next of kin listed? We had each member fill out what to do with their account. We passed a rule that it would only be stock transfers. Legal help is what you need. Good luck. Also in MA
On Monday, November 4, 2024 at 02:20:41 PM EST, Leonard J Delmolino via bivio.com <user*27879700001@bivio.com> wrote:
We are looking for some suggestions on how to handle the
withdrawal and other issues related to the death of one of our members Our club president passed away in mid-August. I am now the new president of the club. Our club is now down to three member and so we have decided to disband. So far we have processed our deceased member's withdrawal. We have also stopped future member payments and have just sold our stock in preparation to disband the club. We plan to make all final member payments by the end of the year. We plan to file our final tax return during the tax season for 2025. But here are the problems we are dealing with. Our deceased member did not have a will and no one has been identified as representing his estate. * We mailed a withdrawal check to the deceased member's address but the mail was returned to the club treasurer. * We continue to get automatic monthly payments to our club brokerage account from our deceased member's personal account. So here are our questions - * What should we do with deceased member's withdrawal check? How can we deliver it to the estate? * How can we stop our member's automatic contributions (our brokerage, Fidelity< seems unable to identify the source of these contributions)? * Can we disband our club and file a final tax return if the above issues are not resolved? We are wondering if any other clubs have had a similar situation and how did you proceed. Thanks in advance for any suggestions! Len Delmolino Massachusetts High Flyers Investment Club So here are our questions - * What should we do with deceased member's withdrawal check? How can we deliver it to the estate? A. Try to locate a family member or next of kin. Start with who notified you of the death. Call local funeral homes to find out who arranged for the disposition of the body. Find out from that person who is handling the estate and delivery the check to that person. B. You cannot locate anyone who will represent the estate, contact the government agency in MA that handles abandoned property and escheat estates. Follow the instructions of that agency on how to send the funds to that agency. * How can we stop our member's automatic contributions (our brokerage, Fidelity< seems unable to identify the source of these contributions)? It seems improbable that Fidelity cannot determine the source of the funds. In any event, instruct Fidelity to reject future deposits. If all else fails, closing the Fidelity account will stop them. * Can we disband our club and file a final tax return if the above issues are not resolved? Following the above instructions should resolve the issues quickly so you can meet your end-of-year deadline. If you still have not been able to transfer the decedent's funds before the end of the year to a representative of the estate or the government agency, buy a money order or cashier's check in the name of the estate so you can close the Fidelity account and stop earning interest and the funds are no longer assets of the partnership. The partnership is dissolved with no assets. So then, you can go ahead and file final tax returns. Jack Ranby, Treasurer, Grants Partners Investment Club Club lost contact with a member until someone saw notice of Memorial service. The Church gave our info to her executor. Try funeral parlors. Churches, Land Registry for property transfer, Post Office for mail forwarding. Cindy Gerke On Mon, Nov 4, 2024, 8:34 PM John W Ranby Trustee PGM Cariboo Trust via bivio.com <user*15792700001@bivio.com> wrote: So here are our questions - Thanks everyone for your suggestions. We have another question that seems relevant - We plan to withdraw all members by the end if the year and to file our final partnership return during the upcoming 2025 tax season. If all members are withdrawn but cash remains in our brokerage account in 2025 awaiting withdrawal, what is the status of our brokerage account with regards to taxes for 2025. At this point, there would be no members remaining in the partnership. Seems that a Partnership return would not be relevant for 2025. Has anyone dealt with a similar situation or have any thoughts on this? Thanks in advance! I believe the WD reports should all be completed this year and ALL of the money distributed. Otherwise you will have transactions in the 2025 tax year. > On Nov 7, 2024, at 8:42 AM, Leonard J Delmolino via bivio.com <user*27879700001@bivio.com> wrote: > > Thanks everyone for your suggestions. We have another > question that seems relevant - > > We plan to withdraw all members by the end if the year and > to file our final partnership return during the upcoming > 2025 tax season. If all members are withdrawn but cash > remains in our brokerage account in 2025 awaiting > withdrawal, what is the status of our brokerage account with > regards to taxes for 2025. At this point, there would be no > members remaining in the partnership. Seems that a > Partnership return would not be relevant for 2025. Has > anyone dealt with a similar situation or have any thoughts > on this? Thanks in advance! It might not be much but your brokerage will continue to pay interest on the cash balance. Joe > On Nov 7, 2024, at 7:42 AM, Leonard J Delmolino via bivio.com <user*27879700001@bivio.com> wrote: > > Thanks everyone for your suggestions. We have another > question that seems relevant - > > We plan to withdraw all members by the end if the year and > to file our final partnership return during the upcoming > 2025 tax season. If all members are withdrawn but cash > remains in our brokerage account in 2025 awaiting > withdrawal, what is the status of our brokerage account with > regards to taxes for 2025. At this point, there would be no > members remaining in the partnership. Seems that a > Partnership return would not be relevant for 2025. Has > anyone dealt with a similar situation or have any thoughts > on this? Thanks in advance! You can have dividends still paid in 2025. Some dividends don't get paid for a month after the ex dividend date. It might not be much but your brokerage will continue to pay interest on the cash balance. Yeah, if you don't have an empty bank account on 12/31, you are going to have to file something for 2025. Peter Dunkelberger
Please remove me from the distribution list. Thank You Kindly. On Thu, Nov 7, 2024 at 11:19 AM Peter Dunkelberger via bivio.com <user*26984900001@bivio.com> wrote:
Today you made an impact, continue making a difference!!!! Charles, you have to do it yourself. I forgot where to do it but there is an unsubscribe link somewhere.
Len, If you follow the recommended procedures for disbanding a club and the withdrawals are complete in bivio, you can file a final return. The broker may pay additional interest on the cash balance if members don't cash their withdrawal checks quickly. The amount of interest is likely to be de minimus and I usually recommend the treasure keep it for all the work done throughout. The IRS isn't going to come looking for the final return for a few dollars of interest income. Other suggestions are to divide the final balance (after the withdrawal checks have been cashed) among the final members of the club, donate it to charity, or spend it on a celebratory meal/drink to commemorate your years of investing together. ira Smilovitz On Thu, Nov 7, 2024 at 8:43 AM Leonard J Delmolino via bivio.com <user*27879700001@bivio.com> wrote: Thanks everyone for your suggestions. We have another Hi Ira, Your response is very encouraging and we'd like to go in that direction. I've listed the details of our situation to see if any of these details may alter your recommendation. * By the end of year, all of our members will be withdrawn in Bivio software. In effect, our partnership would no longer have any members. * All living members will cash their withdrawal checks by the end of the year. * We're having trouble locating any individuals handling our deceased partner's estate. He passed away without a will. He was single with no known relatives. It is a good possibility that his assets will still be in our brokerage account for a while in 2025 and possibly beyond * Our deceased member continues to make automated monthly payments to our brokerage account. We are working with our brokerage (Fidelity) and are hopeful that we can get these payments stopped in the near future. In the meantime, we are transferring these payments to our Pending Withdrawals account in Bivio. * Our tax return filed with the IRS for tax year 2024 will indicate that this is our partnerships' final return * Since all of our partners will have been withdrawn as of the end of this year, what is the tax status of our brokerage account in 2025? Our brokerage account has its own EIN and is considered a business account from an IRS perspective, I believe. Does the IRS still consider us a partnership? Might we still be subject to IRS penalties imposed on partnerships that do not file a timely return? If our brokerage is no longer considered a partnership, are there "Who Must File" requirements that must be adhered to? We're inclined to follow your recommendation. But I wanted to review the above facts with you to see if any of this would alter your recommendation. Thanks for your help with this! Len Delmolino Massachusetts High Flyers Investment Club I know that when companies lose contact with someone that they are holding money for they need to send the money to the state for unclaimed property. I would assume that you should do that. On Tue, Nov 12, 2024 at 4:44 AM Leonard J Delmolino via bivio.com <user*27879700001@bivio.com> wrote: Hi Ira, That's a valid option but Massachusetts only accepts unclaimed property if its been unclaimed for 3 years Len Delmolino Massachusetts High Flyers Investment Club |
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