What Happens to an Account in the Case of Death?

[Avarice 10]

We're all young and healthy. The world is our oyster. So quite naturally none of us like to think about the inevitable. I for one plan to outlive y'all but -- just for the sake of argument -- let's suppose you drive off a cliff in that new Maserati you bought with last week's proceeds. :helloooo:

 

What happens to your trading account? Your open positions won't close themselves magically, how do you handle this? My broker doesn't permit physical delivery so I guess my positions will get auto-closed once the contracts start expiring. But how do stock people manage this eventuality?

 

How do you make sure your spouse and/or kids have access to your funds after you start pushing up daisies? Will your trading account be handled like any other bank account?

 

I guess I should talk to my broker about these things. But I thought it couldn't hurt to throw the question at you guys first. So, any thoughts?

[brownsfan019 17]

Step 1: Talk to a qualified attorney to plan for your demise -- including your trading/investment accounts.

 

Step 2: Follow their advice.

 

Seriously, this is something that you need to pay for top quality advice for - not an internet forum.

 

This is one advantage of day-trading, by 4:15pm EST, my positions are closed. As long as I don't kick the bucket in the middle of a trade, my trading accounts should be sitting in cash and if I do, that's what stops are for. As for the investment accounts, they are considering investments so by the time my accounts are passed on, no big deal.

[Tams 20]

We're all young and healthy. The world is our oyster. So quite naturally none of us like to think about the inevitable. I for one plan to outlive y'all but -- just for the sake of argument -- let's suppose you drive off a cliff in that new Maserati you bought with last week's proceeds. :helloooo:

 

What happens to your trading account? Your open positions won't close themselves magically, how do you handle this? My broker doesn't permit physical delivery so I guess my positions will get auto-closed once the contracts start expiring. But how do stock people manage this eventuality?

 

How do you make sure your spouse and/or kids have access to your funds after you start pushing up daisies? Will your trading account be handled like any other bank account?

 

I guess I should talk to my broker about these things. But I thought it couldn't hurt to throw the question at you guys first. So, any thoughts?

 

nothing will change in your account until:

 

1. a margin call and the broker will liquidate the positions for you.

 

2. an option expires, or, if in the money, the broker will auto-exercise it for you.

 

3. your estate executor makes whatever decision (liquidate, transfer) and notify your broker.

 

 

otherwise nobody has any right to touch anything in it, including your spouse.

[JEHs 10]

If you open the account in both names, she, (or he), should have access to it the same as you.

All my accounts are in both names. All my positions have stop orders attached, so as long as it's going my direction, the position holds, if it goes against me I am out, same as any trading process...

I try to have an updated "in case" folder with this stuff in. It might take a while for her to pull it all together, but eventually she would at least get some sort of account statement and check into it.

My instructions are to close any open positions, close the account and have the check mailed to her...

 

John

[MightyMouse 12]

We're all young and healthy. The world is our oyster. So quite naturally none of us like to think about the inevitable. I for one plan to outlive y'all but -- just for the sake of argument -- let's suppose you drive off a cliff in that new Maserati you bought with last week's proceeds. :helloooo:

 

What happens to your trading account? Your open positions won't close themselves magically, how do you handle this? My broker doesn't permit physical delivery so I guess my positions will get auto-closed once the contracts start expiring. But how do stock people manage this eventuality?

 

How do you make sure your spouse and/or kids have access to your funds after you start pushing up daisies? Will your trading account be handled like any other bank account?

 

I guess I should talk to my broker about these things. But I thought it couldn't hurt to throw the question at you guys first. So, any thoughts?

 

When you are dead they will figure it out because it will be very important to them to have your money so that they can spend it, live on it, etc. It will be money that they did not earn, so it is the best money ever to them. When the money is divied up, you will end up as a fading photo on a mantle, soon to be forgotten.

[FXGirl 10]

Dear Mighty Mouse: That sounds so sad.

 

When I die, even if in mid-trade (stops and take-profit in place), my family will know exactly where to look for the money. My trading is done through a family owned corporation – no problems with getting the money either. I love the idea that they will enjoy spending it – hope they have a great time. As to the fading photo on the mantle, that is as it should be. We have loved, and loved well. What more can you ask? I don’t want them to get stuck in memories, grief or regrets. I hope my husband goes on to fine someone else he can love deeply. I hope my children will go on to create happy, meaningful lives for themselves.

 

Years ago (and I do mean years), I was a police officer. When I went to work each day, I never knew if I was going to becoming home. The dishes were done and the beds made so no one could say I wasn’t a good housekeeper (that’s a woman thing), and my last words as I went out the door were always, “I love you.”

[MightyMouse 12]

Dear Mighty Mouse: That sounds so sad.

 

When I die, even if in mid-trade (stops and take-profit in place), my family will know exactly where to look for the money. My trading is done through a family owned corporation – no problems with getting the money either. I love the idea that they will enjoy spending it – hope they have a great time. As to the fading photo on the mantle, that is as it should be. We have loved, and loved well. What more can you ask? I don’t want them to get stuck in memories, grief or regrets. I hope my husband goes on to fine someone else he can love deeply. I hope my children will go on to create happy, meaningful lives for themselves.

 

Years ago (and I do mean years), I was a police officer. When I went to work each day, I never knew if I was going to becoming home. The dishes were done and the beds made so no one could say I wasn’t a good housekeeper (that’s a woman thing), and my last words as I went out the door were always, “I love you.”

 

That all sounds like you are a very nice, thoughtful person. For your sake, I hope they appreciate it long after you are gone. Longer than you anticipate.

[Avarice 10]

My trading is done through a family owned corporation – no problems with getting the money either.

 

This is one can I've been kicking down the road for some time now, seems like yet another good argument to get that LLC finally rolling.

[SIUYA 11]

not sure about US laws but family trusts may be a better option.

[MightyMouse 12]

not sure about US laws but family trusts may be a better option.

 

In the US if the entity is a device that has an intent of circumventing tax payment or exclusion from countable assets, they are challenged by the IRS or state attorney generals.

[SIUYA 11]

thanks MM, as every country is different you never know.

 

What I have is a structure that is a family trust and utililises a number of companies.

None of them are used to circumnavigate taxes, but they allow for distribution of profits to various family members, are easily transferable (no equity issues such as those when dealing with companies shares) and flexible, and in the unhappy event of my demise, the entity exisits without me and without onerous taxation and ownership issues. This is only applicable when dealing with enough money to make it worth while for the added accounting and setup costs of course.

If just using a simple brokerage account, again depending on different jurisdictions, an executor of a will should be able to access the proceeds much the same as any account.

 

When it comes to what to do with regards actual open positions and closing them out and going to cash, there is a combination of stops in place, but also I have a friend (one I trust implicitly and also understands markets) who can get access to my trading platform (not my cash just in case he develops a crazy gambling habit ) to close things out for me. After that the executor of the estate can look after it.

 

It should be a part of a trading plan - all part of treating it like a business, with documented processes that anyone can follow.

[mohsinqureshii 10]

We're all young and healthy. The world is our oyster. So quite naturally none of us like to think about the inevitable. I for one plan to outlive y'all but -- just for the sake of argument -- let's suppose you drive off a cliff in that new Maserati you bought with last week's proceeds. :helloooo:

 

What happens to your trading account? Your open positions won't close themselves magically, how do you handle this? My broker doesn't permit physical delivery so I guess my positions will get auto-closed once the contracts start expiring. But how do stock people manage this eventuality?

 

How do you make sure your spouse and/or kids have access to your funds after you start pushing up daisies? Will your trading account be handled like any other bank account?

 

I guess I should talk to my broker about these things. But I thought it couldn't hurt to throw the question at you guys first. So, any thoughts?

 

I asked a broker about this and he replied me that my trading account will be blocked if some one will inform about the death of his client , Once the broker will be sent by some official document ( Like Death Certificate ) - The Broker will send the funds back to the authorized bank account of the client and from the bank account "The Next of Kin" written being authorized in the bank account can withdraw the funds.

 

I have seen many broker's application forms , there is no column for "Next of Kin" - there must be one as in Bank Account form.