79

I'm troubled by this: either the person is financially competent, or they are not. If he's genuinely not financially competent, then I would say the trustee should not be handing them $3000/month and trusting them to pay all their living-expense bills: gas, electric, auto insurance, car payments, etc. The trust should take those over and should own the car....


69

Have you considered a pull based system rather than a push based system? Set up a bank account with the full amount. Engineer or such that your relative can only access it via a debit card. Set the debit card daily limit to 100USD. Profit EDIT: The OP asked how to deal with irregular unexpected expenses, such as, the beneficiary needing to replace his ...


16

Most banks offer inter-bank transfers on a recurring basis, but AFAIK the smallest recurring increment is typically weekly instead of daily. First you should verify that both the trust and beneficiary's accounts allow for at least 31 transfers per month, and if they do, as Hart CO suggested in the question comments, you could likely set up 7 recurring weekly ...


14

If you want your bank to pay $1 to a beneficiary Bob, then the service (no matter how implemented) needs to result in Bob's bank saying to Bob "Hey, I owe you $1". The usual way how this is done consists of two parts - your bank needs to somehow tell Bob's bank "hey guys, do us a favor and please give Bob $1 with a message from the sender", and your bank ...


12

Wells Fargo and Bank of America both belong to the clearXchange bank network (https://www.clearxchange.com/about). You can send money to anyone for free with just their email address or phone number if you both use one of these banks: Bank of America ("Send Money To Someone") Capital One ("P2P Payments") Chase ("QuickPayâ„ ") FirstBank ("Person to Person ...


10

After collecting information via web searching, the comments above, and an additional call to BOA, I have concluded the following to the best of my knowledge. Zelle Transfers are final. Irreversible. As Jay mentioned above, funds are subtracted from the sending account before the transfer is made, therefore it eliminates sending funds that do not exist. I ...


9

No issue. You are permitted to move like accounts (i.e traditional to traditional or Roth to Roth) directly with no tax issue. Problems can arise when taking possession of the funds in a 60 day rollover or when moving from traditional to Roth, the latter being a taxable event. A comment from @Dilip_Sarwate is an important one and should be part of my ...


8

The simplest method is just to write a check from one account and deposit it in the other. If you are the owner of both accounts, you should be able to electronically deposit the check using their phone apps. Depending on the amount you are transfering, it may take a few days for the check to clear.


8

TLDR: Yes you can. That is quite a steep price to pay for a trade. I've used TradeKing previously, which would charge you $5 for that same trade. Some other brokers are more or less expensive, and it is normally representative of the service one receives. One option would be Scottrade. While they are much more expensive than TradeKing, they offer a ...


7

No. Not likely. You usually cannot transfer your 401(k) out of a company plan while you are still working there. Some companies do permit such transactions for those 55 and older, but only for your own deposits, not for the matching portion, if any. Either way, best to ask the admin for your company plan. If you were no longer with the company, you'd be ...


6

Why? Because they can get away with it, of course. In short - why not? You may want to read the answers to this similar question (my answer is the one accepted by the OP). Who has the money? The banks, who else. I have found that some banks are capable of sending/receiving ACH transfers faster than others. I have accounts in two banks, lets call them A and ...


6

Is this the same as ACH? It's not "the same as ACH", it is ACH. All the transfers to and from your bank accounts to Square/PayPal/other bank accounts go through ACH. The exception is wire-transfer, which goes in a different (and much faster, and more expensive) route.


5

Yes. Dying works great for what you'd like to accomplish. The key point is that you need to specify a beneficiary (or multiple beneficiaries) on the account . When you meet your maker, the beneficiary would have no tax to pay for withdrawals from a Roth IRA. For a regular pre tax IRA, withdrawals are taxed. Either account would have RMDs, required minimum ...


5

What you are describing in an indirect transfer, as opposed to a direct transfer. It could take weeks. I have done direct transfers from Traditional 401(k)s four times, and it has taken less than a week each time. For three of them I was mailed a check made out to the destination brokerage and sent it via certified mail to get deposited. One transfer ...


5

tldr: The only tax involved is gift tax, and there is a rather large gift tax exemption (an individual can give more than $11,180,000 in gifts during their lifetime before taxes get involved), so in the vast majority of cases no tax is involved. Does the person the stock is coming from have to pay any taxes on their gain at the time of transfer? In most ...


5

Why does she need you to transfer money for her? Why can't she just do it herself? You don't say much about who these guys are that she's sending money to and why. That statement brings up all sorts of red flags that she is the victim of some kind of scam. Or, as others indicate, that she is involved in some sort of money laundering -- knowingly or ...


5

You can't really, it's the bank's job to do that. That's the whole point of writing a name on the For line. Banks aren't supposed to accept checks endorsed by someone other than that person. When you get your canceled check images (or the actual checks if your bank still does that), you should be checking that that the depositor is who you wrote the check to....


5

In USA, on Check you cannot write "To the payee only" as in Israel or "account Payee only" as in India. In USA it is assumed that the Bank will verify that the name matches with the person cashing the check. I understand that basically you want that check to go to an account rather than being cashed, I don't think that can be limited by writer. So if you ...


5

However as I'm now in my 20s I've noticed that my broker has been getting returns of about 5% a year which I'm not really happy with. Have you found out why are the returns about 5% a year? I can see four reasons for such poor returns: Too high fees, i.e. return could be 7-8% but fees are 2-3% Too little diversification combined with poor luck Too ...


4

How much interest you effectively pay depends on when you pay off the balance transfer amount. If you pay off in a lump sum after the full 14 months, you have pre-paid 4% simple interest over a 14-month period. In effect, if you transferred a balance of $100, paying $4 as the transfer fee, you have borrowed only $96 of the $100 that was used to pay off the ...


4

The IRA contribution limit is a limit on the total amount you can contribute to all of your Roth and traditional IRAs. It's not a per-account limit. (See here and here.) Once you've hit the contribution limit on one account, you've hit it on all of them. Even so, supposing you had a reason with try to take money out of one of the accounts, the answer to ...


4

There's something wrong with your story. The IBAN contiains two check digits, and the method used to compute them guarantees that any single digit error will be caught. So it's impossible that "HSBC screwed up the last digit of my IBAN" because if that were the case, the resulting IBAN would not be valid and be rejected by the computer when it was entered at ...


4

Could you get the $700/week down to a less tempting figure by paying some significant recurring amounts directly from the trust? I'm thinking things like utilities, property taxes and services (anything from cleaning to insurance). I'm not in the US, but here they go out monthly/weekly from one of my accounts. I can think of ~$150/week in my case that ...


4

Is there a difference between transferring money and making a payment? "Make a payment" probably involves an external bank account rather than your Citi checking account. Will this affect my interest paid or my credit score? No. Your credit report does not indicate how your balance was paid.


4

I believe any withdrawal of money from an IRA or 401k would be called a distribution and would trigger a 1099-R. A distribution means that money was removed from that account, and doesn't indicate what you did with the money. Even a direct rollover of 401k to a rollover IRA (where it is done within the brokerage and you never touch the money) would be a ...


4

The simple answer to your title question of, Is a credit or debit card refund is technically-speaking the same as a wire transfer? is no. They are not technically the same, or even technically related. In terms of the technical implementation, refunds against debit card or credit card purchases are the same thing as normal purchase transactions against ...


3

It is a rather complex system, but here is a rough summary. Interbank tranfers ultimately require a transfer of reserves at the central bank. As a concrete example, the bank of england system is the rtgs. Only the clearing banks and similar (e.g. bacs) have access to rtgs. You can send a chaps payment fairly quickly, but that costs. Chaps immediately ...


3

From an India Tax perspective, someone may add the US aspect; As you have given your Father-In-Law [FIL] some money, and do not have loan documents, the amount your FIL has repaid will be treated as GIFT to you. Gift Tax by Father-In-Law to Son-in-Law is 100% tax free and there is no limit of amount. The funds can be got into NRO account and not in NRE ...


3

The US (in fact the global) banking industry is subject to Anti-Money Laundering & Counter-Terrorism funding laws, slowing down funds transfer eliminates a great deal of fraud.


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