So if you move, or if you have more than one home in multiple states, be sure to update your legal documents accordingly.
A clear designation of one or more beneficiaries greatly facilitates the transfer of brokerage assets at the time of death.
Many people prepare for the inevitability of death by creating wills or trusts, spelling out instructions about medical care through advance directives, and naming beneficiaries on retirement accounts such as 401(k)s and IRAs.
Sometimes overlooked in estate management is the transfer of securities that are in a non-retirement brokerage account, aspects of which can be planned ahead of time.
Even financial professionals don't always know the rules, Slott says. The money you put in the plan is invested in mutual funds.Responding to issues raised by investors calling FINRA’s recently launched Securities Helpline for Seniors, FINRA is issuing this alert to inform brokerage account holders, family members and other beneficiaries about the value of preparing for the inevitable, and the general process firms follow when an account holder passes away.We also provide tips for making the transfer process as efficient and trouble-free as possible for account holders and also for heirs and beneficiaries.Even though the S corporation’s assets do not receive a basis step-up upon a shareholder’s death, the deceased shareholder’s estate may be able to leverage the stepped-up basis of the deceased shareholder’s stock to reduce tax on the sale of the assets.To do so, the corporation must liquidate and distribute assets in the year of the deceased shareholder’s death.