Posted on 08/17/2017 6:59:05 AM PDT by Danette
I am a named beneficiary along with 4 other siblings of my mother's Pruco Securities non-qualifying Command account. My mother passed away on July 19th.
The procedure to claim my portion of my mother's Pruco Securities account is to set up an another account in my name only. Each beneficiary has to do this. It is a new procedure required of Pruco Securities clearing house, National Financial Services (Fidelity).
My mother's Prudential Financial Advisor is not licensed in my state so he has to find another Prudential advisor who is licensed in my state to help me set up this account. This account is still active with mutual funds and bonds.
I plan on liquidating this new account and moving it to my own bank account until my own financial advisor (not with Prudential) and I come up with an investment plan.
To set up the new Pruco account in my name I am going to be subjected to personal questions about my finances. They want to know my assets, debts, bills, liabilities....I believe this is none of their business. The old procedure (2016) was automatic liquidation of the Pruco Account and distributed to beneficiary.
I do not trust Prudential. There is no one watching this account except the financial advisor. We are in that twilight stage between my mother's death and I am able to get control of my portion. I have no wish to be in the market at all right now especially in funds that I would not choose. I may be losing monies right now.
I need advice on how to handle this situation.
Assuming this is a significant amount of money, I would definitely consult professional help (lawyer or financial adviser). Be careful how you move the money to your account. You should be able to avoid taxes if you do it the right way. Moving it to your personal account may not the wise thing to do. Consult a trusted professional! Somebody you trust should be able to provide you with a good reference.
Definitely watch taxes. Depending on the amount, you might want to consider a trust as opposed to an individual account. Contact an accountant who deals in estates and trusts.
Good luck.
Get a lawyer, right up a request to have the proceeds distributed immediately, or threaten Prudential with a suit. They are doing this because they don’t want to lose the money. My wife and her brother had a similar situation with some stocks held by a brokerage firm they refused to release. They had the estate trust lawyer send the firm a letter, and by the next day the process to have the assets sold and funds turned over had started.
Prudential = Pruco Securities
Yeah, I missed the part about it being a non-qualified IRA. The part of the IRA already taxed should be able to be cashed without a tax issue, but any gains will likely need to be moved to inherited IRAs.
Surprise! One of the aspects of that old policy (taken out in the 1970s) is that the minimum interest it will pay is 3%, and that will increase if interest rates on savings ever do!
I wish I could say I was shocked that the insurance company didn't want me to know what that minimum interest it pays will be. Get that information before you take your money out. With interest rates on savings so low, it would be foolish to take that money out until I have to.
Where it's you and your siblings, it might make sense that you all set up individual accounts if you can. Then you can individually look at how much money it is and what plans are available, and make individual choices about your share.
Based on my recent experience with Vanguard (ie not Prudential), they only need your name, address, SSN to set up your individual account. Don’t know what “non=qualified Command account” is... recommend you work with your current advisor to do a custodian to custodian transfer of this individual account (avoiding tax implications if this is an inherited IRA). Putting it into a money-market account is similar to your plan of parking it in savings account.
i have to pay taxes on interest made between death and it is put in my name.
Is it even legal for them to require my personal financial information?
I have already filed to claim my portion of 3 annuities and life insurance. They offered to set up an Alliance account with 3% interest and a “check book”. I declined and chose a lump sum check. That alliance account is a scam. Google retained asset account. I will have to pay taxes on portions of these annuities.
Are you sure that the detailed info request is still valid if you check the liquidation boxes?
Oh. And I asked if my own advisor could set up a Pruco Account and she can not because she is not Prudential.
I have not seen any claim paperwork on the Pruco Account.
I will have to set up the account over the phone with a Prudential Advisor who is registered in my state.
Once they roll over my portion to that account then they say I can do anything I want.
Getting your financial info may be a requirement of the government and you may have no choice.
From the perspective of your the local representative he needs this information in order to properly represent you. He is obligated to act within certain rules and regulations. One of these rules is "know your customer" rules that require a representative to obtain basic information so that there is some assurance they are not aiding a money laundering scheme. Another rule is that any investments (no matter how short) you make are appropriate for your investment horizon, your knowledge, your risk tolerance, your financial needs and your income taxes. Failure for a representative to obtain this information will cause him to fail to be able to open an account for you.
The part I would question is that one of the settlement options is not a simple check made to the beneficiary. I would get someone like your current representative to read the policy.
...and she's not able to put you in touch with someone trustworthy who is Prudential?
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