Moving an ETF between brokerage accounts

[JeanM]

My wife and I have a revocable trust. We also have two brokerage accounts at Fidelity. Both accounts are identically registered in the name of the trust. I use one account for the assets I manage; my wife uses the other account for the assets she manages.

Without getting into Why do you want to do this?, is it possible on Fidelity’s online platform to move an ETF (say, VOO) from my brokerage account to my wife’s brokerage account?

[livesoft]

Easy to find out by calling Fidelity. I hear they have great customer service. Let us know what they tell you.

I will state that it is trivial at Fidelity to move ETF shares from a joint brokerage account at Fidelity to a donor advised fund at Fidelity all through the online interface.

[YangtzeCruiser]

My wife and I also have a revocable trust containing all of our joint Schwab brokerage accounts. I move positions (cash, stocks, mutual funds, ETFs and T-bills) across those accounts regularly. No problem. I don't think I've ever tried to move a bond, but I can't imagine it would be any more difficult.

[JeanM]

Just FYI that last week I called Fidelity on this topic. The Fidelity rep said that I needed to consult my tax accountant. I tried to explain that I wasn't asking a tax question, that I just wanted to know where I could drag-and-drop (in essence), an ETF from one brokerage account to another, identically registered brokerage account, without having to liquidate the ETF. Regardless, the rep kept repeating his "consult a tax specialist" line.

Today I called Fidelity again, spoke to a different rep, and asked the same question. I got the same answer, that I should consult my tax accountant.

Either I am asking the question wrong, or it's such an uncommon request that the rep's don't know how to handle it.

[Artsdoctor]

I can't speak to Fidelity's protocol, but I know that at Vanguard, you can definitely move investments from one account to another while maintaining the cost basis of the investment. However, they have very strict guardrails in place if the social security numbers do not match: for example, a very old account is titled in both of our (spouse and me) names and a newer account is titled similarly. However, the social security numbers do not match so it's hard to move assets in-kind between the two accounts (not impossible, just difficult).

Transferring an asset "in-kind" should not be a taxable event. I think that the Fidelity representative is wanting to make sure that you're talking the same language, so you'd want to verify that the cost basis is maintained (it should be).

[ArtMan]

Longtime Fidelity customer here, and if you don't like the answer you are getting, you probably should ask to speak to a manager/supervisor. Also, if you have a Fidelity Investor Center that you can get to, you might consider going in for a face-to-face chat.

That said — and I have no special expertise in these matters — you actually may be asking the question incorrectly. Or maybe the Fidelity rep is hearing it wrong. It sounds like the two of you do NOT have brokerage accounts. If those accounts are in the name of the trust, I think it is technically, legally, and in fact, the trust that has those accounts. The trust is a separate legal entity from either of you. I assume both account have the same IRS number, either social security or taxpayer ID number.

So this doesn't sound like a tax matter to me — and remember my disclaimer ("no special expertise"). In any event, I'm hearing your question, not as a tax query but rather as a "how do I do ABC on the Fidelity website, which is not a question for a tax professional.

[indexfundfan]

My wife and I have a revocable trust. We also have two brokerage accounts at Fidelity. Both accounts are identically registered in the name of the trust. I use one account for the assets I manage; my wife uses the other account for the assets she manages.

Without getting into Why do you want to do this?, is it possible on Fidelity’s online platform to move an ETF (say, VOO) from my brokerage account to my wife’s brokerage account?

You should be able to do this online. Select Transfer > Transfer cash or shares between Fidelity accounts.

I was able to transfer some shares from the trust account to my account, and the cost basis transfers over as well. Everything is done through the online interface.

[LotsaGray]

It would help if you posted more precisely what you asked. The words used will be very important to F. The actual words and phrases used. If you mention the words tax in any form, you will get the consult accountant reply. For example if you asked can I move shares of XYZ from account A to account B wo a tax hit will get the consult accountant. Now if asked how do I transfer in kind XYZ shares from A to B you should get an answer how to achieve that if it is possible.

Of course part of your issue is the terms of the trust and what it’s says. I assume it is possible the trust might say only DW can act I account A while only DH can act inside account B. At that point even if front line CSR reps explains the transfer in king process, it may still not answer the question. Because one person would be acting in both accounts against those trust terms.

[volstagg]

My wife and I have a revocable trust. We also have two brokerage accounts at Fidelity. Both accounts are identically registered in the name of the trust. I use one account for the assets I manage; my wife uses the other account for the assets she manages.

Without getting into Why do you want to do this?, is it possible on Fidelity’s online platform to move an ETF (say, VOO) from my brokerage account to my wife’s brokerage account?

You should be able to do this online. Select Transfer > Transfer cash or shares between Fidelity accounts.

I was able to transfer some shares from the trust account to my account, and the cost basis transfers over as well. Everything is done through the online interface.

Agreed, this works for standard Joint brokerage accounts, don't know why it wouldn't for a trust. I have moved individual stocks and VTI between brokerage accounts no problem and they transfer without liquidating, then 2-3 days later the cost basis information shows up.

If you can't get a straight answer from a Fidelity rep, I suggest you try something simple, move 1 share of VOO and see what happens.