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Martin P. English

transfer of ownership of shears by way of a will?

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 I have a question concerning the transfer of ownership of shares.   I am in the process of updating my will and want to will my shares in Legion M to my children.  any advice on this or maybe a contact that can give me specific answers to this.  my lawyer says the transfer of this type requires setting up a nonprofit with ownership of investments with all my children as officers of the nonprofit???  Sounds like I will have to pay money to do it this way and for the record, I hate lawyers.  If I willed my investments to 1 person, child, it would be more straightforward and easier by contacting each investment and designate a beneficiary upon my death.  Different investments have different procedures in this regard, like if there are multiple beneficiaries the shears are liquidated and the funds are split among the beneficiaries or the shears are split among the beneficiaries as prescribed by the benefactor in the will.  I prefer to keep things simple without the need for lawyers and want to know if Legion M has a mechanism of transfer of ownership of shares as beneficiaries in my will?  Trying not to be morbid in my question but it is what it is.  Thank you in advance.

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@Terri Lubaroff Can you provide any general info on how shares might be set up to go to beneficiaries?  Carta does not offer a beneficiary designation via its site at this time.

@Martin English Something else to consider is a Living Trust.  It's easier to write-up and maintain than a will.  The only thing is that the shares would have to be transferred into the name of your trust, instead of directly to you (i.e., the shares would be in the name of The Martin English Living Trust, for example).  Then, through the trust you can designate who they should go to.  The Trust can be changed as many times as you want/need, and only needs to be witnessed by a Notary Public if there are changes to the beneficiaries.  (You can add/subtract holdings in the Trust without a Notary.)

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I was given that option but costs money.  I am attempting to will all my assets to my three children without any of my estate being lost threw, or at a minimum, fees, charges, lawyers, courts and the such.  Basically, as with a few of my investments, I just add my children as co-owners of the stock or bond or whatever.  Is that an option I can exercise, adding my children as co-owners of the stock?  Like in a joint bank account or such.  And thank you for responding.

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@Martin English What your lawyer is proposing sounds complicated!  I can't give you legal advice, but I believe there is a simpler method to accomplish your goals.  Have you reached out to Carta to ask what they recommend?

Your best bet is to give your lawyer more specific information about the investment (number of shares, the current amount of money involved) and what your specific goals are for your children upon bequeathment (i.e., perhaps you can divide up the investment with an equal amount of shares going to each child and any fractional amounts going to the eldest?).  From a practical perspective on my end, if a beneficiary proves they are entitled to the shares of a deceased shareholder, as long as I have the legal paperwork from the estate, I can currently effectuate a share transfer into that person's name very easily.

Hope that helps!

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@Martin English, @Karen C, and @Terri Lubaroff,

(Please note, I am not an expert in giving legal advice nor am I a Lawyer.)

I have explored the issue of willing the shares out to beneficiaries a great deal.  I like to point out that each state handles inheritance differently.  I would like to stress the importance of having a will and designating your beneficiaries. 

When it comes to stocks and bonds. It gets a little tricky in some cases.  Again. depending on where you live...you will have four options at most.

First option, which have been discussed previously is Trust Fund.

Creating a trust fund would require you to name someone to head the fund in the interest of your beneficiaries. In addition, you will be required to form the trust fund legally. So that would require fees to create the trust fund and fees for the lawyer to set it up. 

Second option, would be to set it up to where the shares are sold and the post valuation to be placed into the estate and when the estate settles. The beneficiaries would get equal share of the post valuation of your Legion M shares. 

Third option is to let your named beneficiaries to buy the shares for themselves.

Finally, your fourth option is to just transfer equal shares to your kids and leave the fractional portion of the shares to your eldest.  I would like to stress this, some states do not allow straight transfer of shares to beneficiaries. Many states require the estate to sell off the shares and give the post valuation to the beneficiaries or allow the beneficiaries to buy the shares that they can afford. 

If Carta enables an option on our electronic shares to contain a simple way to will out shares upon death. It would override a lot of the hassle of passing shares on.

Finally, the downside of the option of the estate selling off the shares and issuing post valuation to beneficiaries...it becomes taxable.  Inheritance tax laws are different in each state...so watch out. 

Once again, I am not a lawyer nor a legal expert. I am simply passing on what I have learned when I have been investigating this issue.  

 

I hope this helps! -Adam

P.S. We ought to petition or email Carta and get them to enable a way to list beneficiaries. 

 

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On 2/2/2018 at 5:56 PM, Adam Cox said:

which have been discussed previously is Trust Fund

Just to clarify, I was suggesting a Living Trust which is different than a Trust Fund.  A Living Trust can be done without a lawyer, although one might be advisable if the contents of the Trust are complicated.  If you don't employ a lawyer, the only cost is to have the Trust owner's signature notarized, and any fees that might be incurred for transferring ownership of holdings to the Trust or, if real property is involved, recording a new deed.

EDIT:  I should add that my experience is only in California.  Other states may have different requirements. 

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On 1/30/2018 at 4:44 PM, Martin English said:

I was given that option but costs money.  I am attempting to will all my assets to my three children without any of my estate being lost threw, or at a minimum, fees, charges, lawyers, courts and the such.  Basically, as with a few of my investments, I just add my children as co-owners of the stock or bond or whatever.  Is that an option I can exercise, adding my children as co-owners of the stock?  Like in a joint bank account or such.  And thank you for responding.

I have seen folks set up an annuity specifically with the purpose of handling estate taxes for their beneficiaries. If you have a financial advisor, I highly recommend consulting them to see if that is an option available to you.

When I did my will to deploy, I set up a trust inside the will for my daughter, but she was also 8 at the time.

Edited by Nikki Ackerman
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