Online Help : Trusts, Retirement and Custodial Accounts
Trust Accounts
What happens when a trustee is incapacitated, or wishes to resign as a trustee?
What happens when a trustee passes away?
Traditional/Roth IRAHow can I change the beneficiary on my IRA?
How can I perform an IRA transfer of assets with your company?
I have to begin taking my Required Minimum Distribution. What do I do?
UGMA/UTMA accounts
How do I change the custodian on an UGMA/UTMA account?
What happens when the minor reaches the age of majority in my state?
Miscellaneous
What is a medallion signature guarantee?
Trust Accounts
What is a Trust?
In general, a trust is a legal entity that is able to own property and other assets,
established by a legal agreement defining how assets are going to be managed and
distributed. Property can legally be transferred into the trust as the owner. Different
trusts have different types of classifications in the law and for tax purposes.
What are the requirements to set up a trust account or transfer
to a trust account at Columbia Management?
To set up a new trust, or transfer an existing account to a trust, please provide
the following:
- New Account and Services Application
- Trustee Certification Form names all trustees who can act on the account; must bear a signature validation program or medallion signature guarantee stamp.
- In the case of a transfer from another registration type, we require a Change/Transfer of Ownership Form signed by the current account owners to authorize the transfer. The form must be medallion signature guaranteed.
- All physical certificates
What happens when a trustee is incapacitated, or wishes to
resign as a trustee?
If a trustee is incapacitated, we require the following:
- A Trustee Certification Form naming who is authorized to act on the trust. This form needs to be signed by all remaining or newly named trustees and must bear either a signature validation program or medallion signature guarantee stamp.
If a trustee wishes to resign, we require the following:
- A Trustee Certification Form completed and signed by all remaining or newly named trustees, bearing either a signature validation program or medallion signature guarantee stamp.
What happens when a trustee passes away?
If a trustee dies on an account and the trust name, date, or TIN is not changing, we require the following:
- A Trustee Certification Form signed by all current trustees, bearing either a signature validation program or medallion signature guarantee stamp.
- All physical certificates
If the trust name, date, or Tax Identification Number (TIN) is changing, we will require:
- Change/Transfer
of Ownership Form that must include the following:
- If the final distribution will be in cash or transferred to the new account, and
- medallion signature guarantees for all current trustee signatures
- New Account and Service Application
- A Trustee Certification Form signed by all current trustees, bearing either a signature validation program or medallion signature guarantee stamp.
Traditional/Roth IRA
What is an IRA?
The IRS defines an Individual Retirement Account (IRA) as a personal savings plan
which allows you to set aside money for retirement, while offering you tax advantages
(including deducting your contributions in some cases). The contributions and earnings
in most IRAs are generally not taxed until they are distributed to you.
How can I change the beneficiary on my IRA?
If you need to establish a beneficiary for your IRA, or wish to change your current
designation, please complete the IRA Optional Services/Change Request Form. If you have
multiple beneficiaries, please make sure your allocations equal 100%.
How can I perform an IRA transfer of assets with your company?
If you are transferring assets to Columbia Management, we require the following
forms, found in our
Traditional/Roth IRA Kit :
- An IRA Transfer of Assets Form
- Depending on the requirements of the previous company, this may require a medallion signature guarantee. Please consult your current IRA custodian for clarification.
- An IRA Application (if you don’t currently have an IRA with Columbia Management)
If you are transferring assets from Columbia Management:
- To another IRA:
- You should fill out paperwork with the receiving custodian to transfer the assets directly from Columbia Management. Please consult your current custodian for clarification. A medallion signature guarantee is required if the transfer of assets is over $100,000.
- If that is not an option, you can request a direct rollover by completing an IRA Distribution Form , with the payee information for the final distribution check. If this request is medallion signature guaranteed, we will mail the check directly to the new custodian.
- As a direct rollover to a qualified plan, for example a non-IRA such as a 401(k):
- Complete an IRA Distribution Form with the payee information for the final distribution check. If this request is medallion signature guaranteed, we can mail the check directly to the new custodian.
I have to begin taking my Required Minimum Distribution.
What do I do?
You have two options to satisfy your RMD requirements:
- Call Shareholder Services for assistance in making the distribution.
- Complete and mail a Required Minimum Distribution (RMD) Form. This option provides the opportunity to set up recurring payments from your IRA accounts. We will calculate the amount that you need each year going forward and send it to you at a date that you specify.
UGMA/UTMA accounts
What is a UGMA/UTMA account?
Whether you qualify for an Uniform Gift to Minors Act or Uniform Transfer to Minors
Act account depends on your state of residence.
- An UGMA account allows a donor to give cash or securities to a minor. The minor is the legal account owner, and a custodian is appointed to act as the responsible individual for the minor in financial matters involving this account.
- An UTMA account is similar to an UGMA but extends the definition of gift to include real estate, paintings, royalties, and patents.
In all cases, there can be only one custodian and one minor on the account. Ownership of property is strictly the minor’s, and the custodian acts as a responsible individual (which is why all UTMA/UGMA accounts are reported under the minor’s Social Security number). Some states will allow the custodian to designate the age (usually between 18 and 25) when the minor can take the assets as their own.
How do I change the custodian on an UGMA/UTMA account?
In order to change the custodian on an account, we require (by mail):
- A letter of instruction signed by the existing custodian, stating their intent to resign as custodian and appoint another adult as the new custodian. The signatures of the resigning custodian and newly appointed custodian must bear a signature validation program or medallion signature guarantee stamp.
- A New Account and Services Application completed and signed by the new custodian.
- Any outstanding certificates issued on the account.
- Please contact Shareholder Services at 800.345.6611, Monday through Friday 8 a.m. to 8 p.m. ET., for instructions on changing the custodian due to death or incapacitation. (Please have your account number and social security number available when calling.)
What happens when the minor reaches the age of majority
in my state?
When a former minor reaches majority age, the UTMA/UGMA funds must be transferred
to their name individually, with no fiduciary custodian. This process does not happen
automatically. To process this transfer request, we require:
- A Change/Transfer of Ownership Request Form filled out by the custodian. In cases where the custodian cannot or will not act, the former minor can fill out this form*. A medallion signature guarantee or signature validation program stamp is required by the custodian of the former minor.
- A New Account and Services Application filled out by the former minor.
- Any physical certificates.
*Please note: A copy of the former minor’s birth certificate or other government issued ID will be required when a former minor between the ages of 18 – 25 submits the transfer request on their own. If the former minor’s date of birth is not on file with the transfer agency at the time of the transfer request, a copy of the birth certificate or other government issued ID will also be required (for requests made by the former minor). A birth certificate or other government issued ID will never be required for requests made by the custodian on behalf of the former minor.
Miscellaneous
What is a medallion signature guarantee?
The purpose of a medallion signature guarantee is to authenticate your signature.
The medallion signature guarantee also carries with it certain statutory warranties
that we rely on. Only a person who has been formally authorized may execute a medallion
signature guarantee on behalf of their organization. A medallion signature guarantee
generally may be obtained from a bank, savings and loan association, or a member
of these recognized stock exchanges: Securities Transfer Agents Medallion Program
(STAMP), Stock Exchanges Medallion Program (SEMP), and New York Stock Exchange Medallion
Signature Program (MSP). You also may be able to obtain a medallion signature guarantee
from a credit union provided it is authorized to guarantee signatures. We are unable
to accept notarizations.
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