Author Topic: Inheriting stock that needs to be split 3 ways  (Read 725 times)

octopus28

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Inheriting stock that needs to be split 3 ways
« on: February 01, 2021, 11:14:56 AM »
Hi! First post here. Thanks to all of you for helping in advance. My Grandmother passed away and left a minimal amount of stock (90k) that is to go to myself and two siblings. The stock is with Stifel and via my mother (executor) they are planning to split it 3 ways by having us all open our own accounts and then transferring our amount into our newly created individual accounts.

Is anyone familiar with this process?
Is it necessary to have to open a new account with Stifel to get my share?
Would love to leave Stifel and move it to Vanguard when I can.
Any words of wisdom?

Thank you!

JSMustachian

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Re: Inheriting stock that needs to be split 3 ways
« Reply #1 on: February 01, 2021, 01:25:48 PM »
I would ask if its an IRA or a taxable account. If its an IRA, here is information I found from searching. You should not need to create an account with Stifel.

https://investor.vanguard.com/inherit/ira

"Steps you'll take to inherit an IRA
Here's a general, step-by-step process that shows how inheriting an IRA will work. Find out what you’ll need before you get started.

Let us know about the person who passed away: The first step will be letting us know. That way, we're able to update our records and take some precautions on our end (for example, freezing the account to protect it from unauthorized activity).
Tell us about yourself: We'll ask you for some basic information, like your email address, Social Security number, date of birth, and a few other details.
Begin the transfer process: Different options for inheriting are available, depending on who you are. So we'll start by asking if you’re the spouse or non-spouse."

Inheriting an IRA as a non-spouse
Your only option is to transfer the IRA into an Inherited IRA in your name. Then you'll begin taking withdrawals according to a timeline set by the IRS. See the IRS withdrawal rules for Inherited IRAs."



octopus28

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Re: Inheriting stock that needs to be split 3 ways
« Reply #2 on: February 01, 2021, 01:55:54 PM »
Thanks for taking the time to respond. It is actually a taxable account.

Gronnie

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Re: Inheriting stock that needs to be split 3 ways
« Reply #3 on: February 01, 2021, 02:10:29 PM »
Thanks for taking the time to respond. It is actually a taxable account.

In that case there's a stepped up tax basis upon her death. Just liquidate the stock and have the executor cut each inheritor a check.

octopus28

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Re: Inheriting stock that needs to be split 3 ways
« Reply #4 on: February 01, 2021, 03:37:22 PM »
Thanks! Do you know how that would impact the executor? My mom is the executor, but me and my 2 siblings will receive the stocks. I think that my mom is having us do it this way so she is not involved (and my guess is she worries about taxes herself? or who knows what she is worried about, honestly). So she is making us all create our own accounts instead of having it liquidated and her splitting it 3 ways. Thanks!

cool7hand

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Re: Inheriting stock that needs to be split 3 ways
« Reply #5 on: February 02, 2021, 02:51:04 AM »
Talk to a tax professional. There might be tax efficiencies here depending on what you want to do and if your mother is comfortable with the advice. For example, if you just want cash, the estate might be able to liquidate the equities and just transfer you cash.

better late

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Re: Inheriting stock that needs to be split 3 ways
« Reply #6 on: February 02, 2021, 07:37:26 AM »
If I’m reading between the lines correctly (from your comments that she is worried about taxes/who knows what she’s worried about”)your mom is anxious about her role as the executor. In that case presenting alternative suggestions might backfire. Some people freeze up when they don’t know what to do. Also some people find it really hard to sell inherited stock or stock that was a gift. Just something to consider.

 There is nothing wrong with her approach (that I can see) and you may get your inheritance faster.

Catbert

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Re: Inheriting stock that needs to be split 3 ways
« Reply #7 on: February 02, 2021, 10:35:02 AM »
^^^ Yeah, if it makes it easier for your mom, just create Stifel account and let her transfer the stock to it.  Then sell it all and move on. 

octopus28

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Re: Inheriting stock that needs to be split 3 ways
« Reply #8 on: February 02, 2021, 01:06:01 PM »
Thanks, all. I think you're right about taking the easy route and just creating my own account and then selling. Appreciate it!