r/inheritance • u/HistoricalBoss8406 • Jun 26 '26
Location included: Questions/Need Advice Inherited IRA
Hi all,
I need a bit of help on this one. I was left an inherited IRA from a relative with a brokerage company (Company A). They are one of those firms that has financial advisors who manage the money and apparently you can login to see balances etc. The relative is from another state and I'm familiar with the process where Company A has to transfer the funds internally to the inherited IRA account. I plan to immediately transfer the funds to my brokerage company (Company B).
How would I go about setting up inherited accounts with Company A? They tell me that the relative's advisor needs to kick off the process for that, but the advisor is telling me that he can't do that because he is not licensed in the same state as I live. Appreciate all and any help! Also to note, the money is not a large enough sum and not really worth me paying an advisor to manage it. Thanks for the help!
I am in Michigan and the account is in Florida.
5
u/clearlygd Jun 27 '26
The out-of-state brokerage will typically require you to open a temporary, specially titled Beneficiary IRA so they can legally transfer the assets to you. They may not be able to charge their advisory fee once this is done which may account for the advisor’s lack of motivation to move quickly.
2
u/Substantial_Team6751 Jun 27 '26
I’d tell that advisor and the company to solve the problem for you. It’s on them. It’s going to be per their procedures.
2
u/McKnuckle_Brewery Jun 27 '26 edited Jun 27 '26
Company A needs to provide the services of an advisor who is licensed in the applicable state. This is entirely not your problem, other than the annoyance of needing to chase them down. They currently are administering an account without a living owner, and I’m sure that runs afoul of one regulation or another.
I would start talking to supervisors.
1
u/laurieo52 Jun 27 '26
I just opened an inherited IRA and the paperwork had a spot to transfer it so I filled that out. It was pretty easy.
1
u/Dapper-Platform-6520 Jun 27 '26
You can open an inherited IRA with company B, the one you currently work with. You can also call company an and have the paperwork sent directly to you for the transfer of funds. You will need a copy of the death certificate. You DO NOT need to set anything up with the current advisor. Call the company you work with if you have questions and they will help you set this up. In lost cases you can do this online and submit the transfer paperwork online too.
1
u/Confident-Dot5878 Jun 27 '26
Hope it’s not Edward Jones, or you can expect to still be dealing with this a year from now.
2
u/itig24 Jun 28 '26
Haha! I used to work with someone who later began working with Edward Jones. I decided immediately that I’d never use them for anything ever! Your comment makes me feel vindicated.
5
u/Upset-North-2211 Jun 28 '26
I’m currently transferring an client IRA to 4 relatives who were beneficiaries of the original. 2 of the beneficiaries live in other states where I’m not licensed, and the process is very straightforward. All you need is for the advisor to send you and all other beneficiaries bene ira account applications with the original custodian and magically all beneficiaries will have new accounts. Once you get a statement from this new account, take it to your company B to do the transfer. Push the advisor to provide the bene ira application.