What is the best way to move assets non-trust to trust

jl747

I just set up a Living Trust account (Brokerage).
I will be moving all of my assets from a non trust account
to a Living Trust. (Note: hasn't been completed yet)
How and what would be the best way to make this
change in Quicken Windows?
Add/Remove Shares or renaming account.
Note this will include cash, Mutual Funds and Money Market accounts.

mshiggins

When I did my living trust, my existing accounts were re-titled, so the only change in Quicken was to change the account names. 

jl747

mshiggins said:

When I did my living trust, my existing accounts were re-titled, so the only change in Quicken was to change the account names. 

Thanks.

I will hold off downloading any transactions from the brokerage company until they
make the transfer from non-trust to trust. Not anticipating any transactions until end of the week.
Hopefully everything will be complete it a few days.

Note that the non-trust and trust have different account numbers.

[Deleted User]

@ji474 - if your trust account has a different (new) account number, then I would say in your case, you would need to transfer assets.  Your FI would be able confirm.  On Quicken, I would just emulate what your FI does.

Boatnmaniac

When I funded my Living Trust brokerage account Fidelity closed my previous non-trust brokerage account and set up a new one for it.  Then Fidelity removed the shares from the non-Trust account and added those shares to the new Trust account which I had set up as a new account in Quicken. 

But I didn't like that because cost basis did not get transferred.  Since these are both taxable accounts cost basis is important.  So, I deleted all of the downloaded Remove and Add shares transactions in both accounts and instead manually entered Transfer Shares Between Accounts transactions (one for each security...All Shares box checked) which transferred all the individual lots so lot history and cost basis was maintained.

But there is no tax issue that I can think of if you would want to simply re-title the current brokerage account.  Since you are doing downloads, you will also want to make sure to deactivate the account, remove all the FI Information from the General tab of Account Details and then do Set Up Now or Add Account and Link the download to the same account in Quicken so it gets connected with the new online Trust account. 

My guess is that if you go this route the process will download Add Shares (and Remove Shares?) transactions and a new Opening Balance transaction which you will probably want/need to manually delete as well in order to get the account back into balance.

jl747

The funds are in the process of being transferred over. Plus the non-trust will be closed when the transfer is completed. (Schwab)

Funds are Tax Optimized.

I have copied my data file and I then updated the account from Schwab and it added my Trust.

It empty for now. So I have a before and after just in case I need to make other changes.

[Deleted User]

@ji747 - I don't know what the reporting or downloading capabilities of your online Schwab account are, but if you can, run a report that shows cost basis (and tax lots, depending how they transfer assets) before the assets transfer.  Then compare the cost basis to the assets in the new account, once the asset transfer is complete.  I only say this because sometimes when an account closes, reporting and access becomes limited.

jl747

Good idea.

I just downloaded a detailed lot file for each fund.
Also did a screen shot of the account market value.

mshiggins

Strange they did not offer re-titling the existing account for you. I did this with Etrade and Ameritrade - no fees for the change at either brokerage. Both accounts continued to download transactions without any changes. 

jl747

@mshiggins

No fees for the change.
I guess that is the way Schwab handles this process.

Just changing the account name would have been simpler.

[Deleted User]

@mshiggins - Wells Fargo Advisors creates a new trust account as well.  No fees.  I think it's done to show a "clean break" between the old non-trust and the new trust account.  In the trust account, you are no longer the owner of the investments.  The trust becomes the new owner.  

mshiggins

@Damian
I suppose there are pros and cons for both methods.

For me, it just comes down to I like the continuity of having all the transaction history in one account. With years and years of dividend reinvestments, various corporate actions, including a past employer being acquired (oh boy, accounting for the ISOs and ESPPs was not fun), it just seems easier to have the continuity. 

jl747

I agree with mshiggins keeping all records intact and just changing the name and leave account number alone.

It will be interesting to see how all of this ends up.
I will update when this process is over.

Thanks to all.

jl747

Follow up.

Used my QDF file that had the non trust already deactivated.
I edited the Account name and account number.
I activated the account and went through the Schwab activation process.
Logging into Schwab. Authorizing third party access. Once that was
completed went back to Quicken and waited for Quicken to finish the

activation and download process.
Be patient it takes a while.

I checked Schwab site and did a comparison between what each Stock,
Mutual Fund, Money Market and cash before and after the transfer.
The only things that did not transfer over were Transaction History
my preferred Cost Basis (Tax Optimizer) that I can find right now.
I did download from Schwab all available Transaction history
that was possible.

Schwab did a Journal Transfer to go from Non Trust to Trust account.

Quicken did ask if I wanted my Money Market to be treated as Cash or as a
Fund account.
I chose Fund.

One of the next things for me to watch for is to make sure
Quicken downloads Transactions.

I hope I covered everything.