club_cafe: marital bliss

iras1 on

>>> Greetings! I have a husband and wife in the club who have
> been individual members for 12 years and now want to become
> one member. Can anyone help me with procedure to follow?
> Thanks in advance
>
> Lounge Rat

>>Hi Tim,

>>Two accounts; two social security numbers. No can do! It would be best to
transfer stock to the departing spouse and let the other spouse continue to
pay into the club, as usual.

Lynn,

I disagree. It can be done. Since there are unlimited marital transfer/gifts allowed under the tax law, the only issue is how to do it in the software. I suspect that bivio's tech support staff will know the answer or be able to help. The simplest way would be to go back and edit all of the past entries for one of the spouses and switch them to the other spouse. Of course, this would invalidate all of the past tax returns as stored within bivio.

Withdrawing one of the two spouses will create a taxable event for that spouse.

Ira Smilovitz

Lynn Ostrem on

Ira, thank you for correcting me. I wouldn't want to give erroneous information. Based on previous conversations with Rip West on this board, I knew it was doable, but very very difficult. So the question begs, " To what extent should a club go to accommodate its members?" Recently, in another thread, you wrote:

> The club has a fiduciary responsibility to itself...to preserve its assets, not to make the lives

> (and deaths) of its partners easier.

I realize I'm taking that remark out of context, but doesn't it apply here, as well? Wouldn't having to redo 12 years worth of club books, and the taxes, be asking too much in order to provide a convenience to the departing spouse?

Always enjoy learning from you, Ira!

Lynn

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