If contacting other family doesn't get you what you want, contact your broker. You should already have the necessary information to open an account in her name and transfer the stocks and required cash to it. Send her a letter informing her that unless the required information is delivered within 30 days that you will do just that. Make sure the account information is mailed to her.
Bob
On October 31, 2018 at 2:19 PM "Gail Brilling via bivio.com" <user*37481200001@bivio.com> wrote:
This is a good conversation. Our investment club, 24 years old, has a founding member who is ill, hasn't been to a meeting in 2 years nor contributed. Our by-laws and partnership agreement are very clear this is a 'you are no longer a member' situation. Many members felt horrible to make this elderly member sad, and many arguments ensued. Now that we have gotten through this angst and realize we must act, the member refuses to give us her account number so that we can transfer stock to her. She has a large position - over $70,000, so we do not want sell the stocks to take capital gains. Any ideas?
> On Oct 30, 2018, at 11:54 PM, Jack Ranby via bivio.com <user* 15792700001@bivio.com> wrote: > > Karen: > > Our club requires the member to submit a written request to transfer his > interest in the partnership to the trust citing the legal name of the trust > and the member as the trustee. At a meeting we vote to approve the transfer > so it is recorded in the minutes. Then the name is changed in bivio. > > If you don't know your members well, you could require a "Certificate of > Trust" accompany the request. The certificate is a document in which the > trustee certifies that the trust exists and he is the trustee. It serves > instead of requiring a copy of the whole trust document. > > Usually, a revocable, living trust uses the same social security number as > the creator of the trust so a w-9 would not be required. If for some reason, > trust has its own TIN then use that number for the K-1. > > Jack Ranby > > -----Original Message----- > From: club_cafe@bivio.com [mailto: club_cafe@bivio.com] On Behalf Of Karen > Andrusiak via bivio.com > Sent: Tuesday, 30 October, 2018 17:23 > To: club_cafe@bivio.com > Subject: [club_cafe] Transfer of Partner Interest to a Trust > > Our Investment Club allows transfers to a trust. We have two members who > want to transfer. However, we are unsure what the actual document they give > to our secretary must say. Do we also need for them to complete a W-9 for > the trust? >
Scott Freeman on
Opening an account in someone else's name seems risky to me.
How will you know that the equities even got there and that
the intended person has control. It also seems risky not to
act if your partnership agreement indicates you should. The
clearest course is liquidate enough to send a check and keep
it on your books as a liability and withdraw the partner.
Scott
Gail Brilling on
Thank you all for the great advice. Two great pieces of advice - make her an emeritus member, preserving her status and standing, and/or ask a family member. We tried (yes, it also seemed a great idea to us!) The family member said no that she still had her faculties to make her own choices, and the member refused the emeritus status.
The third - to transfer stocks into a new account at our same brokerage. My attorney brother suggested that, but I didn't understand the mechanics until you said 'the personal info you already have'. SSN, full name, address, birthdate. And, my personal broker at Schwab has confirmed I/we can do that. Thank you SO much! This has caused the club immense difficulty and at last we can see a pathway..
If contacting other family doesn't get you what you want, contact your broker. You should already have the necessary information to open an account in her name and transfer the stocks and required cash to it. Send her a letter informing her that unless the required information is delivered within 30 days that you will do just that. Make sure the account information is mailed to her.
This is a good conversation. Our investment club, 24 years old, has a founding member who is ill, hasn't been to a meeting in 2 years nor contributed. Our by-laws and partnership agreement are very clear this is a 'you are no longer a member' situation. Many members felt horrible to make this elderly member sad, and many arguments ensued. Now that we have gotten through this angst and realize we must act, the member refuses to give us her account number so that we can transfer stock to her. She has a large position - over $70,000, so we do not want sell the stocks to take capital gains. Any ideas?
> On Oct 30, 2018, at 11:54 PM, Jack Ranby via bivio.com <user* 15792700001@bivio.com> wrote: > > Karen: > > Our club requires the member to submit a written request to transfer his > interest in the partnership to the trust citing the legal name of the trust > and the member as the trustee. At a meeting we vote to approve the transfer > so it is recorded in the minutes. Then the name is changed in bivio. > > If you don't know your members well, you could require a "Certificate of > Trust" accompany the request. The certificate is a document in which the > trustee certifies that the trust exists and he is the trustee. It serves > instead of requiring a copy of the whole trust document. > > Usually, a revocable, living trust uses the same social security number as > the creator of the trust so a w-9 would not be required. If for some reason, > trust has its own TIN then use that number for the K-1. > > Jack Ranby > > -----Original Message----- > From: club_cafe@bivio.com [mailto: club_cafe@bivio.com] On Behalf Of Karen > Andrusiak via bivio.com > Sent: Tuesday, 30 October, 2018 17:23 > To: club_cafe@bivio.com > Subject: [club_cafe] Transfer of Partner Interest to a Trust > > Our Investment Club allows transfers to a trust. We have two members who > want to transfer. However, we are unsure what the actual document they give > to our secretary must say. Do we also need for them to complete a W-9 for > the trust? >