How To Transfer a Custodial Account to Fidelity

Someone asks:

Does anybody have any experience with transferring a custodial account from another brokerage? My father recently passed away, and I still have a custodial on his E-Trade account.

I talked to customer service, and they said I would have to create my own E-Trade account, and the funds would have to be transferred to my personal account. From there, I can sell the funds and then transfer them to my bank account. Any information is greatly appreciated!

Can You Transfer a Custodial Account to Fidelity?

Yes, you can transfer a custodial account from a different brokerage or firm into a Fidelity account.

The process is quite simple.

Let’s use the example above. Say you have an account with E-Trade. What you need to do is request an ACAT transfer from E-Trade to Fidelity.

All holdings (except fractional shares) will be submitted and relocated to your own individual Fidelity account.

Community Answers:

Robert Y:

I’d recommend transferring your late father’s E-Trade account into your own Fidelity account. If you like his investments, you should be able to keep them except for some fractional shares that might have to be sold off as cash. If E-Trade charges you a fee for closing your father’s account, ask Fidelity to reimburse you.

Mark H:

I tried that, but it wouldn’t let me sell the funds when I logged into his account with his username and password. It shows my name with my funds in his account, though.

It said “contact customer service” when I tried to make the trade. I called customer service, and they said I’d have to create my own individual account, and they’d be able to transfer the funds to my new individual account.

I was wondering if anyone has experience with this and knows of an easier way to do it where I wouldn’t have to create an E-Trade account.

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