IB - Nomination not possible for EU/CH Customers

Investing / Brokers
1

Hello All,

This is my first post in this forum, hopefully something that will add value…

I have an account with IB (thanks to the advice of all the experts in this group), where I have been investing once in a while (need some more discipline there)… And then I heard about a friend passing away because of Covid (life is very fragile)… so I though what if I was to pass away, how will my assets in IB pass on to my wife/son. So I wrote them an email to IB asking them about the process of setting up a nominee and this is their response:

Only US-based Individual accounts and Individual IRA Account Users with a single account or multiple linked accounts can access the Account Inheritance page, from which US-based Individual accounts can set up a Transfer on Death and Individual IRA Accounts can add beneficiaries. Unfortunately, Non-US residents cannot access this page.

For Non-US residents, the executor of your estate should notify IBKR Client Services regarding a deceased account via email to estateprocessing@interactivebrokers.com. At that time, general information will be taken and the executor will be provided with information on how to proceed.

Once IBKR has been notified of the death of an individual account holder, the account will be classified as a deceased account and activity (e.g., trading, transfers) is generally prohibited until legal authority is established.

The documents required to establish legal authority can differ depending on the type of account the account holder has at his or her death (e.g., single, joint, trust) and the country of legal residency. These documents will include a death certificate and often other official documents such as a Court Letter of Appointment for the executor, power of attorney for transferring stock ownership, proof of domicile, and trustee certification. Physical documents must be mailed and signed in the appropriate capacity, they will be rejected if information on the document has been altered, or the documents are outdated or missing the appropriate court seal.

However, you can consider adding a Trusted Contact Person.

To me this seems to be a complex process and quite clearly biased towards the US customers. What are your opinion about this process involving “executor of the estate”? Is this something normal? Are there workarounds to this problem like setting up a joint account? Do you have an “executor of the estate”?

Does a nomination possibility exist in Degiro?

2

Is that even relevant in Europe? My understanding is that it’s either a joint account where both partners have access, or you’d have to close the estate to get access.

There aren’t shortcuts (unlike the US where things work differently). So if the concern is for partners, make sure they have enough in a personal or joint account to cover a few months of expenses.

3

The process described by IB will be similar for an account held in Switzerland. Account frozen (can be unfroze upon request for specific payments), need of a death certificate etc. The securities/money will then be splitted and transferred between the heirs once the estate is closed.

4

I agree with the last two posters. It’s a shortcut for US residents.

The bias is, I suppose, not so much IBKR as rather US and international estate law.

5

Thanks a lot for your inputs!! :+1: :+1:

6

Very useful thank you! Is it better to set up a will?