Asset transfers

[pinkhammf]

Question on asset transfers. I file jointly with my wife. I hold a brokerage account jointly my SS, and my wife has one as well with the same company but under her SS. The brokerage simply can't change title but rather they request I setup a Trust account. The trust account only has one SS associated with it. So my question is if I fill out the paperwork and say use my SS as we don't have a SS specifically for the trust, when I transfer her account into the trust now that my SS is being used, does this trigger any type of tax consequences? Should I instead change her account to a joint and then have it transferred? Thanks so much for any guidance.

 

[Taxing Matters]

So my question is if I fill out the paperwork and say use my SS as we don't have a SS specifically for the trust, when I transfer her account into the trust now that my SS is being used, does this trigger any type of tax consequences?

Assuming that both you and your wife are U.S. citizens or residents, that the accounts are in the U.S., and that the trust you have is a trust that is treated as a grantor trust under the Internal Revenue Code (which includes revocable living trusts) then moving your wife's accounts to the trust account will not trigger any tax consequences even though your SSN is the primary taxpayer identification number (TIN) on the account.

Should I instead change her account to a joint and then have it transferred? Thanks so much for any guidance.

If the assumptions I made above are correct then there is no tax reason to change her accounts to a joint account before transferring them to the trust. Whether that might be desireable for other reasons depends on your particular circumstances and the goals you both have.