capran wrote: ↑Sun Aug 30, 2020 10:59 am
Kevin M wrote: ↑Sat Aug 29, 2020 8:29 pm
capran wrote: ↑Sat Aug 29, 2020 6:38 pm
jeffyscott wrote: ↑Sat Aug 29, 2020 10:59 am
capran wrote: ↑Sat Aug 29, 2020 10:13 am
Did some checking with my CU. They suggested a wire transfer from Vanguard for large amounts, but noted they only allow 10k and under of on line out-going transfers and limit of six per month. At this point it is probably not worth the hassle to gain only 800 in annual interest after taxes. I know I should find a different bank, but that means going back to the attorney to change our trust, which would again cost substantially more than the net gain of any comparable account. sure seems like earning interest is more the anomaly since the 2008 crisis, as rates last year were the only time we earned anything. guess that comes with the territory of not subjecting myself to the risks of loss of principal in stocks.
<snip>
It is a brokerage account, so there is a settlement fund and a prime money market that was absorbed by the brokerage account when we set it up. it had been a stand alone Prime MMKT. That said, the issue really lies with the CU. They were aweful to deal with when transferring our roths to Vanguard and wanted to charge us 100 each for some signature guarantee form. Thankfully Vanguard accepted the transfer without the extra signature guarantee.
My biggest issue now is the CU saying there are limits of 10k to transfer on line. With the rates so low everywhere, certainly not worth spending several thousand to revamp the trust to earn 800 extra interest. Live and learn. It will just allow us to convert that much more from IRA to Roth.
You are mixing up a bunch of things.
Transferring IRAs has nothing to do with what we're talking about here.
The $10K transfer limit only applies to transfers initiated at the CU. Initiate the transaction at Vanguard and this limit does not apply.
I don't understand at all the comment about revamping your trust. Why would you have to do that? Maybe you're thinking about the schedule that lists your assets. You don't have to pay a lawyer to update that.
Kevin
I mentioned the IRA's in the context for some of the blocks established by my CU. For example transfer fees going out from the CU. And yes, on the Vanguard side they are accommodation, but on the CU side not so much. I certainly hope and envision a time when I would want to move the money back to Vanguard, and that is where the CU fails us. I double checked and they clearly say electronic transfers are limited to 10k and six per month.<snip>
The six per month limit is correct--that is due to a federal regulation that applies to all savings accounts, so not unique to your CU.
But once again, the $10K limit only applies to transfers initiated at the CU. If you have the CU linked as an external account at Vanguard, you can transfer much more than that from CU to Vanguard by buying shares of a fund at Vanguard (money market, stock or bond).
Many of us here have lots of experience with CUs that have low ACH transfer limits, I've personally done many transfers in and out of such CUs by initiating the transfer from Vanguard or from a bank with high ACH limits, like Ally (my limits are $500K per day and $1M per 30 days for inbound transfers, and $150K/$600K for outbound), and I've never seen a post that anyone has had a different experience.
capran wrote: ↑Sun Aug 30, 2020 10:59 am
<snip> which led to my comment about changing the trust IF I were to change banks. (we were led to believe when/if we make changes of banks or accounts listed in the trust we needed to go back in to modify the trust. although from what you are saying that may not be necessary and is likely a ploy by unethical lawyers who set up the trust.) <snip>
Yeah, there should be no need for a lawyer to modify the trust because you add or remove accounts from the trust. Typically there are one or more schedules that list assets, but from my perspective that's mainly to help the successor trustee identify all trust property. You can update those schedules yourself if you want, or arrange another way for the successor trustee to identify the property.
I've settled two trusts, and I did not rely on the schedules to identify the trust property (I was intimately aware of the financials of both grantors), and I never had to provide the schedules to any financial institution to take control of an account as successor trustee.
capran wrote: ↑Sun Aug 30, 2020 10:59 am
<snip> and we were sold a bill of goods about avoiding probate with a trust, which I doubt is possible when a possible letter of testamentary is needed for things like a wrap-around will to deal with vehicles or things not owned by the trust.
It's not a bill of goods. I was able to settle both trusts mentioned above without probate, although there were a couple of recalcitrant, out of state mutual fund companies that were not aware of the state (CA) probate code that took some extra communications to resolve.
In CA you can use a small estate affidavit to get control of up to $166,250 of non-trust assets, and that worked for me (although the limit was only $50K when I settled those trusts).
So check your state for something similar.
If you have more than the small estate limit outside of the trust, consider using payable/transfer on death titling if not convenient or possible to put the asset in the trust. For example, CA allows transfer on death registration of a vehicle. I often use POD accounts as an alternative to trust ownership.
Kevin
If I make a calculation error, #Cruncher probably will let me know.