Estimated reading time: 2 minutes, 57 seconds
The Transfer Department at Kingdom Trust is one of the busiest areas of our business, which is a good problem to have since they deal with incoming transfers (i.e. clients moving to Kingdom Trust from another custodian).
Most account holders transfer their accounts to Kingdom Trust without a hitch, but even if they do, one thing to keep in mind is that it could still take two to three weeks depending on the releasing custodian. A number of factors could impact or delay the process, such as the type of asset(s) involved, the account being transferred and the releasing custodian itself.
In our experience, transfers may be delayed if
- the releasing custodian does not respond to our contact request
- while all transfers start and end with your new custodian, the releasing (or old) custodian has a significant role to play in ensuring the process goes smoothly
- stay in touch with both firms involved throughout the process to make sure both are giving the proper attention to your transfer request
- an original signature is required by the releasing custodian
- even though Kingdom Trust accepts digital signatures, some releasing custodians still require an original “wet” signature on our transfer form in order to proceed with the transfer
- the wrong form is used
- for Kingdom Trust, you should use the Account Transfer form
- the form is incomplete
- a simple error or omission could halt the process right out of the gate
- the transfer involves a request to liquidate assets
- some firms will not accept third party liquidation instructions and will reject the paperwork and ask that you call to verify/initiate liquidation
- new paperwork is typically required with an updated signature and date once the liquidation has taken place, so, if applicable, Kingdom Trust prefers transferring clients liquidate any assets before submitting the transfer request
- account registration types do not match
- if you indicate on the transfer form that you have a like account with the releasing firm but in fact have an account type that cannot transfer into your new Kingdom Trust account, we cannot process the transfer
- this is one reason we request a copy of the client’s most recent statement, as oftentimes we are able to catch those issues before the request is submitted
- you request cash to be transferred but those funds aren’t available
- If the amount listed is not currently available in cash, you must indicate which asset(s) you wish to have liquidated on the form
- you have outstanding fees at the releasing firm
- you may have a termination fee or processing fee to take care of, and there may not be enough cash is in the account to cover those fees and transfer the requested amount
- account titles do not match
- for example, if you’ve married or divorced since you opened the account at the releasing firm, your Kingdom Trust account reflects your new last name; often clients overlook the fact that the name wasn’t changed on the old account
- once the request is rejected, we typically have to resubmit the paperwork with a copy of the legal name change document (i.e. divorce decree, marriage certificate, etc.)
You should review any account form carefully before completing it to ensure that the process involved will go as smoothly as possible. Again, a simple error could significantly delay a transfer, so be sure that both your old and new custodian has all the information they need to successfully process the transfer request.
Have questions about transferring to a Kingdom Trust account? Contact us with any questions you may have, as we’re happy to assist you in becoming a part of the Kingdom Trust family!