Contesting Benes
What doc is needed after a client dies to change a beneficiary?
A court order that specifically instructs TDA to makes changes to TDA acccounts
Can we disclose Margin/Debit balances on initial calls?
No we need to find out who is authorized on the account first. Once we have supporting documents we are able to disclose balances
What is a Date of Death valuation?
A statement of the account on the date that a client passed away including stock values, cash values, margin values
At what value can a client request to bypass an Estate account?
Any value
When are survivor options applicable? How do we know id something has a S/O?
When their are Bonds/CD's in the account. We would send to researchers to confirm if there is a S/O.
What is the timeframe we give clients who want to contest benes?
30 days
Where do we check to see if a client has a margin balance?
OMS/BOS balances screen/EUC
What is TDA's time cut off for producing DOD valuations?
2 years after the decedent passed
A caller calls in and provides you with a WI for an Individual account that has $3,058 cash only. The client expresses that they do not want to open an estate account, what is required of the client?
($5,000 or less Cash only KANA insert)
Death Certificate, Signed Letter of Instruction (LOI) from the Executor/Small Estate Heir/surviving spouse requesting:
A check, stating that they are the Executor/Small Estate Heir/surviving spouse, Statement that the estate was not probated (if they are the small estate heir or surviving spouse), To whom the check should be made payable, The address to which it should be mailed, and their name and the date.
How do we know if a stock is actually Nonmarketable?
We call trade desk and ask a broker to confirm, we also note the broker who we spoke with in out notes for the WI
What do we need in order to pend the estate item for longer than 20 days when a client claims they are contesting benes?
Proof that they are moving forward with contesting. A court filing, proof they hired and attorney and a statement from that attorney with the intentions of filing with the courts
What are the clients options if they are margin on the account?
They can apply for margin on new account, they can send in a check to cover margin debit, they can transfer as a cash debit and cover within 24 hours
What account types are eligible for DOD valuations?
Individual, Joint, Trust, Entity and IRA accounts only, other account types will need manager/ATM approval.
A client states how difficult our estates process is and how confusing the forms are- do we offer estate bypass instructions?
No, Estate bypass is an honor not offer basis. If a client does not specifically express that they do not want an estate account we mover forward with the normal procedures.
We should offer to help walk the client through the forms and point them in the right direction if something outside of TDA is needed
What should we do when a client calls in, their account has a DC restriction, but they are not deceased?
If the DC restriction is from a Schwab dual client: run VerID on the client and if they pass remove the restrictions
If not from Schwab: look at previous notes to determine how we were notified. @managers in the hotline chat to see if they can pull the previous call and see if we were actually notified that the client was deceased. If we were notified or if a manager was not available, request the client send in an LOI stating they are not deceased.
What if we do not get the requested documents within the designated timeframe?
Leave a note for the case manager or processor that the client still intends to Contest Benes, the CM or Processor will reach out to EdManRev requesting manager review for an exception
Client has a negative cash debit of $249 in their account and no positions, what should we do?
We should write off the negative balance by creating a SF case for Free cash
Can we do a DOD valuation on and institutional account?
NO, Institutional will handle their Date of Death Valuation. You can transfer the client to 559140
A client calls in and states that they wish to not open an estate account. The account is an Individual with the value of $48,187 in Cash. What is the proper process?
($5000 or more - cash only)
Death Certificate, Court Appointment or Small Estate Affidavit, and Signed LOI from the Executor/Small Estate Heir/surviving spouse requesting:
A check, stating that they are the Executor/Small Estate Heir/surviving spouse, Statement that the estate was not probated (if they are the small estate heir or surviving spouse), To whom the check should be made payable, The address to which it should be mailed, and their name and the date.
If a client does not wish to open an Estate account at TDA and has one established at a contra firm, are we able to accept that request?
We can transfer to the contra firm if we receive the following:
Death Certificate, Probate Documents naming the executor(s), Statement from the Estate account at the contra firm dated within 6 months OR Letter of Attestation (LOA) from the receiving firm, Partial Transfer Out form
A client is calling in stating that they want to change benes on an account- what do you say to the client? What notes are needed in the WI?
What to say: The only way to change a beneficiary designation is by providing a court order that specifically instructs TDA to make the changes and lists the specific account numbers. The party contesting must provide a copy of the court filing within 30 days of notifying us of their intent to contest. Only the court filing needs to be received in 30 days, we understand it may take longer than 30 days for a court hearing and order to be issued.
Notes needed in EWA WI: Their name, phone number, email or any other pertinent contact information Any information the client provided about the situation; have the already retained an attorney or is there a certain situation we should be aware of like alleged elder abuse. Any additional information you are able to collect and notate in the work item can help management make additional decisions or exceptions if needed.
Client has a negative cash debit of $367, what should we tell the client to resolve this?
Client may send in a check or Client may Transfer as a Cash Debit and cover in 24 hours
How is DOD calculated when a client passes on a weekend/holiday?
If date of death occurs on a weekend or stock market holiday, IRS regulations dictate fair market value is calculated utilizing the average of the high and low prices for the market day prior to and the market day following death
A client calls in stating that they do not wish to open an estate account, the account is an Individual account valued at $4,752 with cash and securities in the account. What do we need from the client?
($5000 or less - securities)
Death Certificate, Signed LOI from the Executor/Small Estate Heir/surviving spouse stating:
They are the Executor/Small Estate Heir/surviving spouse, The estate was not probated (if they are the small estate heir or surviving spouse), Distribution instructions, and their name and the date, Standard Account Application (if they do not already have a basic account with us), Transfer on Death (TOD) Agreement (Optional)
A client calls in to report a death, but the account is zero balance and closed. The client would like statements from when the account was opened, what do we need?
If there are benes on the account we need a DC and then can relase info.
If there are no benes on the account we need Court Appointment/ SEA and a copy of the DC