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Old 04-19-2015, 11:48 AM   #41
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Originally Posted by imoldernu View Post
Thank you for the post and the subject.
Not a major concern for me, but only because the $$$ are low.. under 15K, and that will be the very last part of my fortune that I'll let the lawyer figure out after my demise.

.... Anyway, my son who is our executor isn't concerned, so we'll continue to collect the $200 yr dividends and go on to happier things, like repairing the seawall, up at the lake.
And if you expect to never sell the stocks, your son will be fine. As gauss points out (quoted below), the value is stepped up at the owners passing.

But here is a STRONG recommendation, based on recent experience:

Get the stocks; paper, held at a transfer agent, different brokerage accounts,whatever... get them converted to a holding in a single brokerage account. Do it now while you are still in good health and sound mind. It is a relatively complex, cumbersome process to deal with after death.

I assume you have revocable trusts? Getting the stocks to a brokerage account that is titled in the name of the trust will simplify everything. It's all one account then, one change to make after passing. FIL had a dozen small stocks held in every possible way imaginable. It took a fair amount of research to find out how to get each one converted and moved to a brokerage.

Fidelity was a HUGE help with this, but it was still a lot of upfront work on my part. Two different transfer agents with their own set of rules, etc. Then the paper stocks (which the Fidelity rep had never seen before, but found out how to handle from the main office). The first refs I found on-line talked about mailing the stocks in, insuring for replacement value (2% of face?), and all sorts of hoops. Fidelity was able to handle it in the office (after I did the upfront work of getting the transfer agent stocks re-titled to the EIN).

In case you didn't get the message... please do this now - for your son.

-ERD50



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Originally Posted by gauss View Post
Basis of inherited assets are usually stepped up to the FMV on the date of death.

Higher basis (generally) and less research - woot woot!

-gauss
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Old 04-19-2015, 11:55 AM   #42
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+1 get it sorted out now as advice from someone who had to go through this process recently for my grandmother and great-aunt. Plus, if it is under $15k you could probably just sell it, do a zero or lowball estimate of the basis and still pay no tax if with the gain you are in the 15% tax bracket. Or if you donate it as gauss mentioned there is also no need to ascertain what the basis is.
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Old 04-19-2015, 05:55 PM   #43
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utrecht - thanks for your note. I did volunteer the fact I can worry too much (though there was one time I worried too little, a "face" that everyone I spoke to including financial folks told me about IRAs, is false in some cases...) but I will probably take the "don't worry so much" route here - or a variation as in my note to Gauss.

Gauss - thank you for your extensive list of suggestions - I have saved and will review them all.

Everyone else
- thanks and even being semi retired I may not be able to keep up but I have bookmarked and may revisit thread in future weeks or months and glean some more wisdom

(everyone else can stop reading here)

To the fellow with 14,000+ posts, with all due respect, you're wrong. Or rather, to use your underline style, you're wrong, or since I tend to be more polite, and don't like to say "wrong", then make it: you're inaccurate, on several counts.

First, this is mistaken: "To the OP, I think where things went off the rails is that you spent a lot of time focusing on the broker(s) and the details of what they said and didn't say, and what you thought they should have, etc"

It was not the broker (Scottrade), and I have no complaints against Scottrade at all (it would be nice if the law started in 2002 rather than 2012 but that's not Scottrade's fault nor do I have any issues with them on this count) Not the broker Scottrade, but the mutual fund B I was focusing on. They were not playing straight.

Second, saying the law puts the responsibility on the taxpayer is the truth, but not the whole truth. Fact of the matter is, de facto, mutual funds were keeping track of it.

Fact of the matter is, in 2013, when I called them and asked about the Cost Basis for the other funds I had with them and which (back in 2008) I had moved under the roof of Scottrade for convenience, they didn't say "we don't have it"

They also didn't say, "give us a week to research into this"

Nope. They said, hold on a minute...and right away, looked it up and gave it to me over the phone after 20 or at most 60 seconds. They had it at their fingertips.

They had the Cost Basis at their fingertips: no research and get back to you a week later deal. So you doth protest too much about "taxpayers: it's your responsibility" repeatedly. We know that. We know that.

Fact is, at least one mutual fund in the universe, namely this one, had it at their fingertips.

But guess what? I'm not upset about that either

It's this third point: That they lie in 2015 about what happened in 2013. Then when I find the name (my handwritten notes) of the person I spoke with, they confess (after I call back later that day) that yes, that person did work for them. Not for Scottrade, not for Mutual Fund A whom B got these index and growth and other individual mutual funds from, not from Scottrade, but finally they admit that yes, a former employee of theirs had (in 2013) the Cost Basis for my other funds (which had 5 years earlier been transferred to Scottrade, recall).

Then caught at that lie, they go back to "ummm, we did you try asking Scottrade?"

Then when pointed out that yes I did, and that yes I had told them several times that I had, they go back to:

"Ummm, we never really had that info, as soon as you transferred in 2008, we gave all the info we had to Scottrade and stopped having that info"

Me pointing out that, firstly, no your fund didn't give the cost basis to Scottrade in 2008 (because the law didn't require and Scottrade said even forbid them from having any such official Basis) and secondly, it's also false that you the fund 'stopped having this info on file as soon as you transferred out in 2008' because you DID have it in 2013"

to which the response was "umm...you really should try Scottrade..ummm.wait you told us you did, umm, let us research and come back to you. Oh what? Linda did research it after you called last week, and she called you back, and left a voicemail saying she has info for you? And then you called? and then we told you we have no idea where Linda's note is?" and on and on.

This is why I'm upset. If they had just been HONEST (and competent) but just be HONEST and say, "it's true, we did have the info on file in 2013, for all the other mutual fund investments other than this one, when you called. We did have that in 2013, even though you transferred out in 2008. We're not sure why we don't seem to have the info for this last fund you need cost basis for. We're sorry about that. As you know it's the taxpayer's responsibility, but we did try, and we're happy we could help you in 2013 with Cost Basis for all those funds you transferred out in 2008 but we don't have it for some reason my boss won't let me divulge, I mean we can't seem to find it, so we're sorry. You might just do a good faith estimate. Hope this helps"

Or anything other than lying to me that "we never had that information after 2008" when clearly in 2013 they had the info for my Growth fund with them (transferred out in 2008) and in 2013 they had the info for my Global fund with them (transferred out in 2008) but they lied and went in circles...

So no, Mutual fund B is not playing straight, and another 14,000 posts saying it's all about "your" will not change my mind about that.

They did not play straight, and I hold them responsible for being both incompetent and (since it can't be an honest mistake after all the reminders) also being dishonest. So I'm not going to change my mind about panning them ("sorry, not sorry") that mutual fund is no good.

To everyone else on this thread: thanks again, and still some time for evening nature walk so I'm outta here :-)
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Old 04-19-2015, 06:12 PM   #44
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Originally Posted by ERD50 View Post
And if you expect to never sell the stocks, your son will be fine. As gauss points out (quoted below), the value is stepped up at the owners passing.

But here is a STRONG recommendation, based on recent experience:

Get the stocks; paper, held at a transfer agent, different brokerage accounts,whatever... get them converted to a holding in a single brokerage account. Do it now while you are still in good health and sound mind. It is a relatively complex, cumbersome process to deal with after death.
<snip>
In case you didn't get the message... please do this now - for your son.
+1, big time! I just finished this with my Mom's estate. She had around $10K in individual stocks with Computershare, and it was a royal PITA to get them transferred to the estate so I could sell them to get the cash into the estate. She had a lot of old physical certificates, and changing the address and getting the Medallion stamps and notary stamps and sending them all in was almost more problem than they were worth.
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Old 04-19-2015, 06:14 PM   #45
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...

Second, saying the law puts the responsibility on the taxpayer is the truth, but not the whole truth. Fact of the matter is, de facto, mutual funds were keeping track of it.
...
It's all the truth that matters. It really makes no difference if anyone else was tracking it for you or not, they are not legally responsible, you are.

-ERD50
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