Still Untangling the Maze

Our Shack in AZ.

Thank you for being genuine, raw, and caring at the same time, one reader wrote.

Raw is the right word. It doesn’t take much to rip the scab off the wound, and then my emotions take over, leading me to make numerous mistakes on routine tasks.

I mentioned earlier that I would give you an update on the account transfers and related matters.

We both had TOD (Transfer on Death) designations on our brokerage accounts, as well as primary beneficiaries. That helped and simplified things. BUT! There are so many smaller details tied to those accounts. One of them I only just learned about and caught before her closed accounts were billed. There were also small monthly charges I didn’t know existed, so those had to be dealt with. It’s all been surreal and overwhelming.

Brokerage Accounts

Akaisha had three brokerage accounts. I went to all of their offices last week to discuss and sign the necessary paperwork. One was easy—they handled everything for me right there. The others are requesting more documentation, so another trip to the office is necessary. This keeps reopening the wound, and it’s emotionally draining.

It has been my experience that death certificates are now handled as PDF files. I made ten copies… and I still have ten copies. The firms either copied my copy and returned mine, or I simply uploaded the PDF. I guess the days of physical, stamped death certificates are over.

Fortunately, I was able to figure out Schwab without visiting their office. Between the two, Fidelity was by far more professional and efficient. Schwab was more DIY.

Tax Planning

As I mentioned in an earlier post, I wanted Akaisha to manage her own accounts. We were the same age, and I assumed I would most likely depart this planet first. I didn’t want her to be taken advantage of by a brokerage salesperson. So we each had individual accounts at both Fidelity and Schwab.

When I inherited her accounts, I received a stepped-up cost basis. This means that no matter how much gain she had in an investment, I received the value as of her date of death. As an example, assuming the markets stayed flat (which I do not anticipate), I could sell her assets with zero long-term capital gains.

Beginning next year I will be filing as a single taxpayer with a lower standard deduction. This stepped-up basis is a helpful way to lower my overall tax liability.

Credit Cards

Closing the credit card tied to her Fidelity account was easy and professional. The debit card closed automatically with her account.

Her Discover card was also fast and efficient.

Citi, on the other hand, is a pain in the ass. I’m still trying to unwind things there. Numerous phone calls have wasted hours and gotten me nowhere. We’ve both had those cards for four decades, and these customer service people are the worst—no compassion, no respect, and no alternative ways of handling things. They’re sending me a letter… via snail mail!

I’m pretty sure I’ll be terminating my own Citi account once everything is sorted. Their customer service is terrible.

I’m the kind of guy who wants to get things done and move on. But I’ve noticed I’ve been making many mistakes while plowing through this maze, so I needed to slow down and “be here now.” Still, that’s not easy for me as things continue to pile up.

But I’m trying.

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About the Authors

Billy and Akaisha Kaderli are recognized retirement experts and internationally published authors on topics of finance, medical tourism and world travel. With the wealth of information they share on their award winning website RetireEarlyLifestyle.com, they have been helping people achieve their own retirement dreams since 1991. They wrote the popular books, The Adventurer’s Guide to Early Retirement and Your Retirement Dream IS Possible available on their website bookstore or on Amazon.com.