Author Topic: Help- Inheritence stuck at Edward Jones  (Read 3551 times)

BeardedDragon

  • 5 O'Clock Shadow
  • *
  • Posts: 3
Help- Inheritence stuck at Edward Jones
« on: January 31, 2020, 09:37:32 AM »
I recently inherited a portion of a TOD (non-IRA) Edward Jones brokerage account from my father along with my 3 sisters. We’re being told we each need to sign a new account agreement as that is the only way they will release the funds from the account.  I do not want to do business with EJ nor do I want to sign their new account agreement. Consequently, my dad had another account at another brokerage that already released the money they held and all that was needed was a tax form and a death certificate. Is there any way to get the money that my dad gifted me from EJ without opening an account with them?

ice1717

  • 5 O'Clock Shadow
  • *
  • Posts: 43
Re: Help- Inheritence stuck at Edward Jones
« Reply #1 on: January 31, 2020, 11:06:07 AM »
Can you not just fill out the paperwork, open the account, get the money into your account, and then take it out/close the account?

A couple of hoops to jump through, but they can't force you to keep the money in that account once you open it.  You existing provider will probably even do the leg work to go get the money once you have the account #, etc.

iris lily

  • Walrus Stache
  • *******
  • Posts: 5672
Re: Help- Inheritence stuck at Edward Jones
« Reply #2 on: January 31, 2020, 11:46:15 AM »
That’s how we got our Ed Jones account, a TOD from my mom. We are lazy and just left it there. And then, there is the “do bizness  in your own tiny community” ethos because this office IS on our business block in our neighborhood.

That counts a LOT for my philosophy since I do not get my hair done (ever) and cannot patronize  the barber shop or the hairdresser. I hate the little shoppe full of cutesy crap no one needs. I dont go to the wine bar. I dont wear clothes that need dry cleaning so cannot ise either of the dry cleaners. There are three restaurants on that block and I frequent one of them regularly, but the other two—nope. I go to the coffee shop 2x a year.

So, doing business with Ed Jones is a way I can regularly support a business in my neighborhood.

The day they leave that block is the day I will remove my money.


BeardedDragon

  • 5 O'Clock Shadow
  • *
  • Posts: 3
Re: Help- Inheritence stuck at Edward Jones
« Reply #3 on: January 31, 2020, 12:44:12 PM »
The issue is primarily with agreeing to a contract that I’m not comfortable with. Signing the agreement and becoming a customer, no matter the length of time, is something I would rather not do. Giving companies permission to “share” my personal information “for marketing purposes”, agreeing to ratification terms, arbitration, and various other contractual points I’m not comfortable with is something I’m becoming more and more tired of. Requiring this simply for the purposes of distributing inheritance funds makes no logical sense to me.

It seems as though this process should be as simple as: by authorized request of the estates personal representative, liquidate the deceased account, send me a W9, another document for tax withholding, and when I return the documents, mail me a check. Period.

Am I being unreasonable in this instance? I know the consensus is to simply sign and get it over with, but I’m looking for other options if they are available.

Dicey

  • Senior Mustachian
  • ********
  • Posts: 22322
  • Age: 66
  • Location: NorCal
Re: Help- Inheritence stuck at Edward Jones
« Reply #4 on: January 31, 2020, 01:02:34 PM »
OMG, something similar happened with my parent's investments after they died. The guy who set up their will and trust was worth every penny of the $495 my mother paid him. (We know, because we found the in their files.) Everyone told us that we were going to get a huge tax haircut.

Nope. We just closed the last account out, finally. Here's what we did. My parents had accounts at Morgan Stanley, Fidelity, and Crap Bank. The only one who would work with us was Fidelity. Once we got them figured out (the smallest balance, btw), they helped us wrest the funds out of the other accounts. It took time and the advice of a friend who is a CPA who used to work for the IRS, but he only charged us a pittance compared to the original "experts" my brother consulted. I guess our native frugality saved the day. No way were we going to waste so much of my mom's hard-earned money.

Those bastards at EJ are lying to you. Keep at it and don't take their "NOs" for a final answer.

parkerk

  • Bristles
  • ***
  • Posts: 367
Re: Help- Inheritence stuck at Edward Jones
« Reply #5 on: January 31, 2020, 01:40:42 PM »
I agree with Dicey, push back.  Say "well, I am not going to open a new account so what happens to the funds now?"  Put it right back on them and keep pushing further up the food chain if you get stonewalled.  Keep repeating yourself.  Take up as much of this rep's time as you can so that eventually you're costing him money by having to deal with you.  Make it so that they just want to get rid of you and I'll bet they magically find a way to do it. 

I don't know where you are or how it would work there (I'm in Canada fwiw) but when I was executor for my grandmother's estate I essentially had all the same rights of access to her property as she would have when she was living, at least in terms of liquidating assets and putting the funds into the estate account.  I had to close a number of different accounts in different places and in every case I provided them with the will and proof that I was executor, filled out a bunch of forms and was issued a cheque made payable to "the estate of Grandma."  The money had to be deposited into the trust account and then cheques issued to the beneficiaries from there.  I don't see any reason why that wouldn't be the same here - have the executor cash out the funds on behalf of the estate and then disburse them to you and your sisters.

secondcor521

  • Walrus Stache
  • *******
  • Posts: 5503
  • Age: 54
  • Location: Boise, Idaho
  • Big cattle, no hat.
    • Age of Eon - Overwatch player videos
Re: Help- Inheritence stuck at Edward Jones
« Reply #6 on: January 31, 2020, 02:41:30 PM »
@parkerk:

I agree with you and others that EJ should have an alternative method to get the contents of the fund to the OP.

However, if there are appreciated assets inside the EJ account, liquidating them would create a taxable event for the recipients or the estate, which the OP may want to avoid.

Easiest thing to do IMHO would be to contact a brokerage firm that OP finds agreeable (perhaps they have an existing relationship with one?) and ask that other brokerage firm to help them wrestle the assets from EJ.  EJ might try to snow an individual customer, but they know they can't snow other brokerage firms and so will more readily comply I think.

Zamboni

  • Magnum Stache
  • ******
  • Posts: 3882
Re: Help- Inheritence stuck at Edward Jones
« Reply #7 on: January 31, 2020, 02:52:29 PM »
^This.

I once had trouble getting my money out of Edward Jones. Eventually I just had Vanguard do it for me by filling out the forms with Vanguard. EJ charged me a $50 fee in the end, which was annoying, and they delayed the transfer nearly 30 days, but eventually the money made its way out of EJ.

The complicating factor here is that there are 4 people who now technically own those assets, right? For that reason, I think having the executor get the money out might be your best bet as suggested above.

cchrissyy

  • Handlebar Stache
  • *****
  • Posts: 1045
  • Location: SF Bay Area
Re: Help- Inheritence stuck at Edward Jones
« Reply #8 on: January 31, 2020, 02:55:52 PM »
I think EJ is one of those places that charges you a fee to close an account. so even if they can't have you for a real customer they are still motivated to make you to open one just so they can take a bite out of you while leaving. Resist!

Dee18

  • Handlebar Stache
  • *****
  • Posts: 2209
Re: Help- Inheritence stuck at Edward Jones
« Reply #9 on: January 31, 2020, 04:06:46 PM »
I inherited money from a cousin last summer, along with 2 other relatives.  Morgan Stanley required that I open an account for the division of assets.  It only took a bit of paperwork.  I told them I wanted it all cashed in and they did that promptly and transferred the money to my bank account so I could invest it where I wanted.  Maybe EJ is going to be more of a problem, but I would get more info before assuming this is really a problem.

Goldielocks

  • Walrus Stache
  • *******
  • Posts: 7062
  • Location: BC
Re: Help- Inheritence stuck at Edward Jones
« Reply #10 on: January 31, 2020, 05:00:03 PM »

I don't know where you are or how it would work there (I'm in Canada fwiw) but when I was executor for my grandmother's estate I essentially had all the same rights of access to her property as she would have when she was living, at least in terms of liquidating assets and putting the funds into the estate account.  I had to close a number of different accounts in different places and in every case I provided them with the will and proof that I was executor, filled out a bunch of forms and was issued a cheque made payable to "the estate of Grandma."  The money had to be deposited into the trust account and then cheques issued to the beneficiaries from there.  I don't see any reason why that wouldn't be the same here - have the executor cash out the funds on behalf of the estate and then disburse them to you and your sisters.

Parkerk -- TOD is like being a designated beneficiary at the time of death (TOD) so that the assets bypass the will and executor.  The executor does not have any access or right to handle the account, it passed outside of the will and estate.

(If I am incorrect, anyone, please advise.  I don't have TOD's where I live, only beneficiary designated accounts.)

I assume that normally, the account holder name just changes to the beneficiary (and you fill out paperwork), except in this case there are several new people to split it.

As long as you can "transfer in kind", "cash basis" and no fees (or no more than if it was left as is), it should be ok to set up in your name, to then cancel it as soon as you can with the least costs.   

Ask if you can transfer it "in kind" to your own non-registered investment account (you already have one, right?).  Transferring it to an EJ account in your name would technically be the exact same thing as transferring it to an account with a different bank, in your name.

Be prepared for EJ fees to release funds early, if there are rear loads to this.

secondcor521

  • Walrus Stache
  • *******
  • Posts: 5503
  • Age: 54
  • Location: Boise, Idaho
  • Big cattle, no hat.
    • Age of Eon - Overwatch player videos
Re: Help- Inheritence stuck at Edward Jones
« Reply #11 on: January 31, 2020, 05:10:35 PM »
TOD is "transfer on death", not "time of death".

EJ account termination fee is typical.  Sometimes the receiving institution will comp you the fee, especially if the amounts involved are large or you already have a lot with them.

 

Wow, a phone plan for fifteen bucks!