Transfer on Death is a form of account registration which allows individuals to pass the assets in their IB account directly to another person or entity upon their death without having to go through probate. This registration option is solely available to individual accounts held by US residents (no joint or IRA accounts).
To elect this option, eligible account holders will need to do the following:
1. Log into Account Management and select the Manage Account, Account Information and then Transfer on Death menu options.
2. You will need to specify your Primary Beneficiaries (from 1 to 6 whose percentage of ownership must total 100%)
3. You may elect to specify your Contingent Beneficiaries (from 1 to 6 whose percentage of ownership must total 100%). If you do not elect any Contingent Beneficiaries you will need to specify how you wish the interests of any Primary Beneficiaries that predecease you shall be treated (either pass back to the account holder's estate or pass to the remaining Primary Beneficiaries).
4) In the event any Primary or Contingent Beneficiary is a minor you will be required to designate an authorizer signer.
5) You will then be provided with a link to a pre-populated Transfer on Death Agreement which requires formal signature and notarization. Instructions are also provided for submitting the form to IB's New Accounts department. If the account holder is married and living in a community property state, spousal consent is required if the spouse is not named as the primary beneficiary (it is the responsibility of the account holder to make this determination).
6) Once the agreement has been returned and reviewed for approval, the registration will be complete and the account title amended (e.g. Jane Doe, TOD). Statements will also refelect this new account title.
7) Account holders may remove the TOD request prior to approval or revoke once approved (both via online option). A new agreement will need to be completed, signed and returned prior to the revocation becoming effective. In order for a revocation request to be effective, it must be received and approved by IB prior to the account holder's death.
8) In the event of the death of the account holder, the beneficiary will need to complete and remit the notarized Transfer on Death - Beneficiary Distribution Form to IB along with a certified copy of the death certificate. If the beneficiary does not already have an account with IB they will need to open one in order to transfer the percent of assets as indicated in the Transfer on Death Agreement.
To make a wire deposit to your account you will first need to provide a deposit notification through Account Management. Once logged into Account Management, select the Funds Management and then Funds Transfers menu options. From there you will select the Transaction Type of "Deposit" and the Method of "Wire".
You will then be prompted to input your delivering bank details including deposit amount, currency of denomination and sending institution. Once that information has been input you will be provided with all the details (e.g., ABA number, Swift BIC Code and bank account number) in a printable form which you, in turn, can provide to your bank in order for it to initiate the wire transfer.
Please note that creation of this notification is essential as the details necessary for your bank to wire funds vary by the currency in which the wire is denominated. In addition, this notification also serves to ensure that the funds are properly matched to your account immediately upon arrival.
Should you have further questions, please contact one of our Customer Service Centers. Contact numbers and hours of operation may be found through the following website link: http://individuals.interactivebrokers.com/en/index.php?f=1560
Accounts which have been set up as a 'Cash' type do not have access to the proceeds from the sale of securities until such time the transaction has settled at the clearinghouse and proceeds have been issued to IB. Securities settlement generally takes place on the third business day following the sale transaction. Providing access to the funds prior to settlement would constitute a loan, a transaction which is precluded from taking place within this account type.
Account holders who wish to have access to settled funds prior to the settlement day may do so by electing an account type of 'Margin'. Under this account type unsettled funds may be used for trading purposes but may not be withdrawn until settlement. Account holders maintaining a 'Cash' account may request an upgrade to a 'Margin' type account by logging into Account Management and selecting the Trading Access and then Trading Configuration menu options. Upgrade requests are subject to a compliance review to ensure that the account holder maintains the appropriate qualifications.
IB requires that customers provide through the application process financial information including: 1) Investment objectives and intended purpose of trading; 2) Investment experience (by product type); and 3) Financial qualifications (e.g., net worth, liquid net worth, and annual income). Customers are also obligated to promptly notify IB of any changes and may do so through Account Management.
Customers may update their financial information by logging into Account Management and selecting the Account Administration and then Financial Info menu options. Note that any changes made to this information is subject to a Compliance review to ensure that account permissions remain suitable.
Why Your TIN May Be Considered as Incorrect
If you are a non-individual, such as a corporation, LLC, partnership, trust or similar entitiy, your TIN will usually be your Employer Identification Number (EIN). Often a non-individual taxpayer EIN does not match IRS records because you have provided IB with a “Doing Business As” name rather than the “Legal Name”. Similarly, the EIN will not match if it is not the number of the actual owner of the account (e.g. you have provided IB with the SSN of a partner rather than the EIN of the partnership).
What You Need To Do
You will need to compare the name and EIN per your records (e.g. recent business tax return) with the name and TIN on your IB account. Information regarding your IB account including a form for updating your information will be made available upon log in to Account Management. This comparison will require that you take one of the four actions outlined below. If you have any questions regarding your name and/or TIN as recognized by the IRS, please call the IRS Business and Specialty Tax Line at 1-800-829-4933 for assistance.
1. If the name and EIN on your account agree with the name and EIN per your records – Write the Internal Revenue Service Center where you file your income tax return and ask the IRS to send you a Letter 147C. This letter will confirm the name/TIN combination the IRS has on file for you. Once you are in receipt of this letter provide a photocopy to IB along with proof of identity and proof of address.
2. If the EIN on your account is different from the EIN through which you submit your business tax returns, but the name is the same - Update your EIN through the form made available upon login to Account Management. You do not need to contact the IRS.
3. If the name on your account is different from that through which you submit your business tax returns, but the EIN is the same on both
a. If the name on your account is correct, contact the IRS to correct the name. Request that the IRS to send you a Letter 147C and once you are in receipt of this letter provide a photocopy to IB along with proof of identity and proof of address;
b. If the name per the IRS records is correct, update your personal information through Account Management. Provide photocopies of supporting documentation (proof of identity and proof of address). You do not need to contact the IRS.
4. If both the name and EIN on your account are different from the name and EIN through which you submit your business tax returns
a. If the name and EIN per the IRS records is correct, update your personal information through Account Management. Provide photocopies of supporting documentation (proof of identity and proof of address). You do not need to contact the IRS;
b. If the name and TIN on your account is correct, contact the IRS to correct the name. Request that the IRS to send you a Letter 147C and once you are in receipt of this letter provide a photocopy to IB along with proof of identity and proof of address.
In order to effect this change you will first need to update your employment by logging into Account Management and selecting the Account Administration and then Account Information menu options. From there you may modify your personal information including employment. If the nature of your prior employment also involved membership in an exchange, regulatory or self-regulatory organization, or you were an associated person, affiliated person or employee of an exchange member, and these no longer hold true, you will need to change your answer to this question as contained within the Regulatory Info menu option also contained under Account Information.
Finally, please instruct your former employer to send an email to firstname.lastname@example.org in order to independently confirm this request to discontinue sending duplicate statements. If your new employer is also a financial institution which, for in-house compliance purposes and/or as a result of regulatory mandate monitors the trading activities of their employees, they will need email a request to email@example.com in order to receive duplicate statements and trade confirms.
Due to the generally unsecure nature of commercial email and the volume of SPAM it generates, IB's Customer Service does not support inquiries delivered via email. Clients who wish to communicate in a formal manner may do so through the secure webticket application available within your Account Management Message Center or through the Inquiry Form located on our website.
Please note that responses to formal inquiries, regardless of how delivered, will be made available via the secure webticket application. Clients who wish to also receive an email, SMS text message and/or TWS bulletin when a webticket response is generated may do so by setting their message preferences within the Message Center. Two message settings are made available:
1. Secure - under the secure setting you will receive a notification via email, SMS text message and/or TWS bulletin advising you when a ticket response has been provided. As this notification will not contain the contents of the response, you will need to log into your Account Management Message Center to read the message and/or post a follow-up response.
2. Non-Secure - under the non-secure setting you will receive a notification containing the full text of the ticket response within the body of the delivery option you've selected (i.e., email, SMS text message and/or TWS bulletin). While this doesn't require that you log into your Account Management Message Center to read the message, you will need to do so should you wish to post a follow-up response.
As no preferences are established by default within the Message Center, clients who wish to elect either the secure or non-secure option may do so by logging into Account Management, clicking on the Message Center icon and then the Preferences menu option at the top of the page. From there you may select any combination of delivery options and, for each delivery option selected, your secure or non-secure setting preference.
In the Funds Status section of Account Management, client accounts who are logged in and have requested a withdrawal, will see the status as 'Pending Advisor'.
In the advisor structure, client accounts can request withdrawals by logging into Account Management just as any individual account would. Once a withdrawal request is made by a client account, the advisor must approve the request. If the Advisor does not approve the request, the withdrawal request will still be processed, but there will be a 3 business day delay.
Advisor Steps to Confirm:
Once a withdrawal request has been submitted by a client account, the advisor will receive an email notification, stating that a client has requested a withdrawal. In order to approve, the advisor must log into Account Management. The advisor will select the appropriate client account number on the Welcome page of Account Management. A list of all Pending Items will appear for the selected account. The advisor clicks the 'Consent' button in order to expedite the processing.
Note about hold periods:
In order to ensure the timely processing of client initiated withdrawal requests, the hold period for withdrawals where the amount of the request is greater than 80% of the amount available for withdrawal, will be held until consented to by the advisor or 3 calendar days, whichever comes first. For amounts representing less than 80% will be held until consented to by the advisor or the next business day.
The account holder can do this through Account Management. Login to Account Management and select Trading Access, then click on Trading Configuration. From the Account Configuration/Trading Configuration page, the account holder can select the permissions they wish to obtain. Once they have selected all pertinent permissions the account holder can submit the request.
If the account holder also wants to subscribe for Market Data which applies to those new permissions, they can also do this from Account Management by again selecting Trading Access, then clicking on Market Data Subscriptions.
To upgrade trading permissions, log into Account Management and select the Trade, Configuration and then Trading Permissions menu options. You will be presented with a matrix listing the product types offered (e.g., stocks, bonds, options, futures, etc.) along with the countries in which trading in those products is offered. Your current permissions will be denoted by the checked boxes within the matrix. To upgrade or expand those permissions, simply check the box alongside the product and country combinations desired and select the Continue button at the bottom of the page. Your request will then be forwarded for Compliance review to ensure that the new permissions are consistent with your stated trading objectives, product knowledge & experience and financial qualifications. This review generally takes 24-48 hours and upgrade requests are reviewed in the order by which they are received.
In addition, once your request has been approved we recommend that you review your market data subscriptions through the the Trading Access and then Market Data Subscriptions menu options to ensure that you have the proper subscriptions for the products you intend to trade.