Upon the death of the beneficial owner, the U.S. brokerage firm is forbidden under U.S. tax law from transferring the assets from the decedent’s account until the IRS has concluded its estate tax audit. Charles Schwab generally may only transfer or release the assets in an account after the executor, surviving joint tenant, trust beneficiary or other person legally entitled to receive the decedent’s assets provides to Charles Schwab an original “Transfer Certificate” (IRS Form 5173) received from the Internal Revenue Service. Based on current rules, the items below would be required for release of U.S.-based assets held in an account by a non-U.S. resident. The following are required.
- The IRS Transfer Certificate. Due to IRS regulations, an Individual account would be frozen pending IRS review and issue of the IRS Transfer Certificate. Once the IRS completes their review and all applicable US Estate taxes are paid, the IRS will issue the Transfer certificate releasing the funds.
- Probate or Succession documents from the applicable jurisdiction naming the Executor(s)/Administrator(s)/Heir(s) of his estate. This is typically based on residency at the time of passing.
- Complete legible copy of the Executor(s)/Administrator(s)/Heir(s) valid passport(s)
- A valid W-8BEN must be on file (if the client is not a U.S. citizen)
The time frame for procuring an IRS Transfer Certificate can be lengthy. While the IRS website states nine months, we find 12 months is more common (not counting the pandemic, which has extended the time frames).
IBKR doesn’t force the executors to file for US estate tax, they require them to sign a declaration confirming that they’ve taken all necessary tax steps, including that one, if applicable. I had IBKR send me the forms that my executor would have to process.
The documents I received included an attorney’s certification saying “I further hereby certify that all taxes, funeral expenses, debts, and claims against the decedent’s estate have been paid or will be paid by the recipient(s) listed in Section II above and that no person, firm, association, or corporation, other than the recipient(s) listed in Section II above has any right, title, claim, equity, or interest in, to, or respecting the estate or the proceeds of the account to be transferred or closed. I agree to indemnify and hold IB LLC and its affiliates harmless from and against any loss, damage, liability, claim, cost or expense…” There was no mention of an IRS transfer certificate
Q: When a spanish citizen and tax resident passes away, what documents does IBKR request in order to transfer/release the assets to the heirs?
A: Kindly note that only United States-based (residents) Individual accounts are eligible for beneficiary registration at IBKR at the moment.
For all non-US residents, once IBKR has been notified of the death of an individual account holder by the executor of their estate or the surviving 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. It is important to let your relatives and heirs know about your IBKR brokerage account. In case of an unfortunate event, they will be required to contact us.
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. For Probated Estates, distributions from a deceased account will be titled in the name of the estate rather in individual heir or beneficiaries.
IBKR will not be able to advise you on the details of the will. You can create your will with consultation with your legal advisor according to your legal resident country laws and regulations. Having a will is not mandatory, but having it does make the process easier. If there is no will, your surviving account holder must have a court order.
The surviving account holder must provide us the death certificate and other documents notifying us of the unfortunate event. The surviving account holder/holders can call us on our hotline to know the steps to be taken for the account inheritance process but kindly note that the documentation for the same must be sent and done via an electronic format only.
¿Os podéis creer que llevo dos días haciendo una pregunta sencilla a IBKR y una y otra vez me contestan con el mensaje tipo que os he puesto en el post anterior?
¿Tan difícil es responder a esto?
Is the “Transfer Certificate” (IRS Form 5173) one of the documents requested by IBKR when the deceased client is a spanish citizen and tax resident?
Empiezo a sospechar que la respuesta es SI pero no dicen nada para que no haya estampida de clientes internacionales.
Please note that by regulation, if at the date of death, the value of the deceased account on U.S assets where the issuer is a US entity or government are more than 60 000 USD then, the heirs have obligations with the IRS.
At the day of death the value of US assets at the IBKR account was less then 60K but, since the tax due is for any U.S. securities or commodities at any brokerageaccount the compliance department require that:
If the deceased had more than this amount you will need to complete form 706-NA and obtain a tax certificate from the IRS. See below:
If this is not the case, we need a letter from the heir(s) confirming that the deceased had not over 60K USD in U.S. securities or commodities at IB or any other brokerage firm and that they don’t have a tax obligation to the IRS. That can be done via a signed letter that you can attach to this email. The letter does not need to be notarized.
In the case of not having positions and us securities worth more than 60,000 usd in this case it is enough thatyou write us a letter signed by all heirssaying that there were no positions worth more than 60k on the date of death. This letter not necessary to be notarized.
Eso parece. Llevo interrogando al departamento de herencias de IBKR en plan Gestapo un par de días y la información fluye a cuentagotas. Parece que tengan directrices para ser lo menos transparentes posibles con este tema.
Porque vete tu y explícale al IRS que ya has pagado sucesiones en España y que no es justo que se te cobre dos veces por lo mismo.
¿Y ahora resulta que tengo que buscarme el menos malo de los brokers españoles, traspasar el carterón sin prisa pero sin pausa y asegurarme de que nunca haya más de 60K$ en acciones USA con IBKR? Todos los caminos empujan hacia la indexación.
Has hecho un gran trabajo y dada tu determinación, he callado como una puta
Ahora como inútil en fiscalidad española (por que hacen lo que les sale de los cojones, cambian cuando quieren y dan respuestas contradictorias) e internacional, este tema salio hace años y hemos de revisar la Biblia española del conocimiento inversor, CZD:
De hecho he visto sitios, medio “pro” que enlazan ahi para que se lea, con dos…
Y uno que barre para su negocio, pero da motivaciones.
Lo que te contaban en Atención al Cliente de IBKR hace unos años no coincide con lo que te cuentan ahora mismo desde el Departamento de Herencias y por si fuera poco todo bien envuelto en una capa de oscurantismo de lo más sospechosa. Ya ves lo sencillo que es responder a las preguntas que les planteo con un SI o un NO pero no se bajan del burro.
En mi opinión y por mucho que me pese el riesgo de tener una cartera jugosa con valores USA en un broker USA es muy elevado.
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