Question about "sole beneficial owner" when opening account

Investing / Brokers
1

Hi everyone,

I have a couple of questions about this statement, in regard to the kind of money can be invested with a financial service. The terminology used “transfer” opens to some possible interpretations.

It must be your own money. You must be the sole beneficial owner of the assets that you transfer. This means that you may not transfer money from someone else to one of your portfolios and invest it in your name.

Furthermore, reading the FAQ I see the following statement in regard to “joint portfolios” (which are not possible for such solution thus).

Please note that you may not invest money that belongs to another person, including money belonging to your partner. You must be the sole beneficial owner of the assets you invest with finpension.

Two scenarios:

  1. If some one receives a gift from his/her parents (regularly declared in the Tax Form, and done via bank transfer), are such money considered as own money?
  2. If there is a transfer of money between partners/married couple (no tax or special declaration is required), in a form of gift so to say, are these money considered as own money for the beneficiary partner, after the transfer?

Both the options above, are technically a transfer of money from someone else (there is no specification of a partner, spouse, child or whoever might be).
But practically speaking, if someone receives a gift from parents or his/her partner (just to list the two most obvious and natural situations), then the beneficiary can consider this amount as his/her own asset: buying a car, spending for a travel etc., including investments, should not be a concern.

Am I overthinking?

Thank you in advance for your feedback/input.

Best,
Cap

2

Money transferred from someone else or partner is declared as gift in tax return. And once it’s transferred to you, it becomes your money.

In other words -: all gifts , inheritances etc are your money. But you need to declare them in tax return

If you think about it, everything you have comes from somewhere else. Even salary.

2 Likes
3

This sounds to me like it’s there to deter people for investing on others’ behalf, effing it up, and the other person complaining about it.

1 Like
4

Yes. Because that need financial qualification and different account like an intermediary

1 Like
5

Hi Abs_max, thank you for your kind feedback.

In the situation of a married couple, is the declaration still required? To my undestanding, direct-line donations (between married couple or kids) are extempted by tax (depending by the canton of residence, thus), and at the end, the Tax authorities calculates the wealth combining all figures: so it would represent just a flucuation within the same financial dimension.

6

I’m pretty sure the answer is “when it doubt, declare” :wink:

7

Yes!

I suggest you to try to open a joint account for both of you. Otherwise it’s kind of acceptable if you declare yourself as a sole beneficial owner, if you have joint ownership with your wife.

8

Married couple file tax together as one entity in CH. So I believe movement between the couple shouldn’t matter.

But that’s for tax.
I don’t how brokers see that

9

Hi Dr. Pi

I recall some brokers do not allow to transfer money to the portolio from a joint bank account.

10

What? How? How should they know whether my bank account is joint or not when I send money via bank transfer?

11

Correct, and as a typical “overthinker” I tend to consider this aspect too.
But pragmatically, it would mean that “any” transfer of gifts (e.g. 100 CHF) should be then declared.

My intepretation is that, the declaration (considering a married couple or coming from parents) if there is a property to be donated, of if the amount itself is not negligible: in this case, it opens to intepretation of what is consider negligible and what is not. I would tend to consider the amount allowed (canton based) for which the declaration might be required or not.

12

Hi Almi,

Some brokers request to sign a paper declaring that.