My husband and I belong to the same investment club. He
passed away last month and I would like to transfer his
units to my account. I know we cannot do this from one
member to another but since we have a trust and there is no
probate involved can we do this. Our club would like to
avoid paying us out and then having me reinvest as this
would mean holdings would have to be sold and then perhaps
we would just have to purchase them again. Thank you.

Your question involves a legal and an accountting component.
First the legal.

If you and your husband have a trust and your membership in
the investment club was titled in the name of the trust,
then there is no need to do anything. The trust survives the
death of your husband and you continue to particpate in the
club through the trust. This is an important aspect-it is
not just having the trust that is important, you must also
title ownership of assets (including ownership in the
investment club) in the trust in order to obtain the
benefits of the trust.

If you and your husband were separate, individual members of
the club, then the fact you have a trust is not relevant.
Any assets owned by a decedent directly (not in the trust)
are still subject to a will or the intestate succession laws
of your state. If I were the club, I would treat your
husband as a separate member and follow the procedures
outlined in the partnership agreement. If that calls for the
full withdrawal upon death, then I would issue a check with
the "Estate of John Doe" as the payee.

Jack Ranby
Grants Partners


Marilyn Trytten wrote:
> My husband and I belong to the same investment club. He
> passed away last month and I would like to transfer his
> units to my account. I know we cannot do this from one
> member to another but since we have a trust and there is no
> probate involved can we do this. Our club would like to
> avoid paying us out and then having me reinvest as this
> would mean holdings would have to be sold and then perhaps
> we would just have to purchase them again. Thank you.