Timeline for Is it legal if I'm managing my family's entire wealth?
Current License: CC BY-SA 3.0
36 events
| when toggle format | what | by | license | comment | |
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| May 21, 2017 at 11:48 | comment | added | Yosef Weiner | If they are depositing money into your account, does that mean you have to register and be regulated as a brokerage? | |
| Apr 16, 2017 at 3:03 | answer | added | Aaron Hall | timeline score: 2 | |
| Apr 15, 2017 at 15:27 | comment | added | Ross Millikan | You can avoid paying taxes on all the earnings on your return (assuming your SSN is on all the accounts) by deducting the earnings attributable to each family member on your return by saying it was received as a nominee for that person, then reporting it on their return. I suspect that you need to give them a 1099 with a copy to the IRS but am not sure. I am not endorsing the whole idea, but this is a solution to one part. | |
| Apr 14, 2017 at 23:14 | answer | added | Glen Pierce | timeline score: 1 | |
| Apr 14, 2017 at 10:27 | comment | added | Pandora | @grfrazee How is the robbing part relevant? The OP was not asking how to prevent the possibility of him robbing his family. If they trust him, and he is not stating here that he has plans not to give them the money back, I don't see a problem from the personal point of view. The possibility of an accident (as mentioned by Chloe might be more relevant, though). | |
| Apr 13, 2017 at 17:01 | history | protected | NL - SE listen to your users | ||
| Apr 13, 2017 at 14:53 | answer | added | Matthew Read | timeline score: 2 | |
| Apr 13, 2017 at 8:04 | answer | added | NoDataDumpNoContribution | timeline score: 4 | |
| S Apr 13, 2017 at 5:05 | history | mod moved comments to chat | |||
| S Apr 13, 2017 at 5:05 | comment | added | Ganesh Sittampalam♦ | Comments are not for extended discussion; this conversation has been moved to chat. | |
| Apr 13, 2017 at 3:52 | comment | added | Patricia Shanahan | A less significant issue, but one you should consider: Suppose one of your relatives wants to travel internationally, and needs to prove strong economic ties to where they live and sufficient funds to make their plans reasonable. They are not going to be able to produce bank statements showing their real investment situation. | |
| Apr 13, 2017 at 0:01 | comment | added | Chloe | What if you get hit by a bus? How do they get their money back? | |
| Apr 12, 2017 at 14:35 | comment | added | Harper - Reinstate Monica | @DavidRicherby while I wouldn't disagree, I am concerned that I might be hearing high-minded idealism, which may not reflect practical boots-on-ground experience in consumer-facing bank security. In other words, it wouldn't surprise me at all. | |
| Apr 12, 2017 at 10:42 | comment | added | O. R. Mapper | @grfrazee: Your comment was fine until "tell you their passwords". That is really bad advice on various levels (starting at making the OP's family used to a possibly bad habit of sharing their access data), and really unnecessary: The tidy way of giving trusted parties access to your bank account is by giving the bank a written authorization for those trusted parties, whereupon the bank can easily set up additional user accounts with access rights to your bank account. Additional user accounts that can be individually limited or revoked if required. | |
| Apr 12, 2017 at 7:04 | comment | added | David Richerby | @Harper Sure. However, I would be very surprised if their way of dealing with it is shared passwords. Suggesting sharing passwords is like suggesting forging signatures. Surely, no bank would deal with multiple authorized people by having them forge the signature of the account holder. Surely, no bank would deal with multiple authorized people by having them share a password. | |
| Apr 12, 2017 at 6:14 | comment | added | Harper - Reinstate Monica | @DavidRicherby Anyone in the banking business knows that trustees are a thing. If they can't come up with a way of accommodating trustees, they're a terrible bank! | |
| Apr 12, 2017 at 6:00 | answer | added | Harper - Reinstate Monica | timeline score: 12 | |
| Apr 12, 2017 at 0:27 | comment | added | Mark Rogers | None of your investment ideas mention IRAs or 401k and some of them sound high risk, so this is without a doubt a terrible idea. I really wouldn't want to take any major risks with my family's money like that. It doesn't sound like they are rich enough to suffer a loss if they need you to control it. | |
| Apr 11, 2017 at 21:01 | comment | added | user2357112 | @user662852: They probably have a way, and that way is probably not sharing passwords. | |
| Apr 11, 2017 at 21:01 | comment | added | chrylis -cautiouslyoptimistic- | E*TRADE has an Investment Club account specifically to handle this scenario. I'm sure that some other brokerages offer similar options. | |
| Apr 11, 2017 at 20:41 | comment | added | user662852 | @DavidRicherby Your brokerage has no way under their user agreement to handle say a power of attorney held by a family member? | |
| Apr 11, 2017 at 20:30 | answer | added | Tom Au | timeline score: 4 | |
| Apr 11, 2017 at 19:22 | comment | added | David Richerby | @grfrazee Yes. You are perfectly entitled to give terrible advice. | |
| Apr 11, 2017 at 18:32 | comment | added | David Richerby | @grfrazee Telling anybody my banking passwords would be a breach of the terms and conditions of my bank account. | |
| Apr 11, 2017 at 18:04 | answer | added | coteyr | timeline score: 32 | |
| Apr 11, 2017 at 17:15 | answer | added | Dilip Sarwate | timeline score: 9 | |
| Apr 11, 2017 at 16:29 | history | tweeted | twitter.com/StackFinance/status/851834523977482240 | ||
| Apr 11, 2017 at 14:25 | answer | added | Paul | timeline score: 7 | |
| Apr 11, 2017 at 14:23 | answer | added | DonQuiKong | timeline score: 11 | |
| Apr 11, 2017 at 14:15 | comment | added | grfrazee |
Which means that I transfer all their funds to my bank account and then invest it under my name. This is how an unscrupulous person might go about robbing a client, by the way. Divest yourself from your family's money by keeping everyone's money in their own accounts. If they still really want you to have total control over their money, then they can just tell you their passwords.
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| Apr 11, 2017 at 12:08 | answer | added | JTP - Apologise to Monica♦ | timeline score: 58 | |
| Apr 11, 2017 at 11:56 | answer | added | mhoran_psprep | timeline score: 87 | |
| Apr 11, 2017 at 11:47 | comment | added | Peter K. | This is a really bad idea, at least from your relatives' viewpoint. They'll have zero comeback, should you decide to not give them their money. A better way to handle this would be to guide each individually and get them to give you power of attorney over their accounts. Depending on how much money it involves, you'll also incur more taxes this way, which is not very responsible of you. | |
| Apr 11, 2017 at 11:40 | history | edited | Chris W. Rea |
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| Apr 11, 2017 at 9:53 | comment | added | SMeznaric | Not sure, but I suspect it might count as a gift in some circumstances so you might have to pay tax if you have it under your own name. | |
| Apr 11, 2017 at 9:16 | history | asked | Anoneemus | CC BY-SA 3.0 |