What happens or what should be done if an options trader dies and he or she has options in his/her account? Many brokerage houses seem to be silent on this.
In many brokerage houses that I know where this information is available, it is assumed that the beneficiary in the will would receive the options and would decide whether to sell them or not. The brokers simply add options to the standard estate procedure for stocks, bonds and CDs. They completely ignore the fact that stocks, bonds and CDs have longevity while options will wear out in time value and disappear while waiting to be liquidated.
Do you know of any stock broker who addresses this issue openly and adequately?
I don't know of any broker in the U.S. who would answer this question other than referring the asking party to their attorney.
There is a process to go through when an individual dies, during which time all assets are essentially frozen. If the options account was held in a living trust managed by an trustee, the options could be bought and sold, subject to possible scrutiny by a judge if there seemed to be any mis-management of the account before the account was released to the legal heirs.
It's not a simple answer as there are various federal, state and estate issues at play, as well as what may or may not have been in place prior to the owner's demise.
wow no idea ask the Google god. That is a really sucky predicament.
Wish you the best ngureco
You will have to wait for 30 days, then you can find a lawyer, tell him what is your situation. Upon the death of an employee with vested stock options, only an individual legally empowered to do so may exercise those options. check this out http://www.ehow.com/how_5003006_exercis … death.html
This article give you the thing you want to know.
I hope this will give a little help
That's why you need a will. Then you can dispose of your assets in the way you would wish. Without a will, the estate reverts to the state and the state determines the disposition of the assets.
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