BENEFICIARY GUIDE

Precious Metals

The Process

Step 1: Open an IRA with New Direction Trust Company.

This allows us to communicate with you and share documents back and forth in a secure manner when logged into our client Portal.
Complete the Inherited IRA Election Form (IEF), which provides us with your beneficiary type (designated or eligible designated) and authorizes the internal transfer of your metals to your IRA account.
Provide a copy of the Death Certificate. This can be done securely through the messaging center in the client portal if not provided previously.

Step 2: Review the assets you have inherited from the decedent.

NDTCO will provide you with a copy of a statement from the decedent’s account.
NDTCO will provide you with information on the current storage location.
If you want to choose a different storage location, you will be responsible for paying shipping costs. You can view current options here: Precious Metals Depository – New Direction Trust Company (ndtco.com)

Step 3: If there is more than one beneficiary, determine how the precious metals will be divided among beneficiaries.

If the metals don’t divide equally, the beneficiaries must come to an agreement on how they will divide the metals to meet the designation.
The beneficiaries will draw up a document outlining this division. Guidance will be provided for this document at the appropriate time. Each beneficiary will sign this document in front of a notary public.

Step 4: Determine the option you want to complete for your inherited precious metals.

Move the precious metals to your new IRA account. This may require a Depository Election form, which will be provided to you.
Distribute the precious metals to yourself personally – this will be reported to the IRS as income.
Liquidate the precious metals.
- Move the sale proceeds to your IRA. At this time, you can re-invest or transfer to a new custodian.
- Distribute the sale proceeds to yourself – this will be reported to the IRS as income.

BENEFICIARY GUIDE

Additional Important Information

Information about Precious Metals in an IRA

The precious metals dealer, depository, and purchase of the metals was chosen and arranged by the decedent. NDTCO does not recommend, endorse, or provide investments for our clients and is not responsible for the gains or losses of the value of the precious metals.
The precious metals in the account are held in a depository in the name of the decedent’s IRA.
The value shown on the statement you will receive is obtained from a 3rd party resource and should not be relied upon as the price you will find in the marketplace. These estimated values do not include mark-ups, discounts, or commissions. The values shown may also not reflect the listed date’s value.
Review these articles Diversifying with Precious Metals – New Direction Trust Company (ndtco.com) and Precious Metals IRA – Frequently Asked Questions (ndtco.com) for more information.

Distribution of the Precious Metals

Complete the Distribution and Notice of Withholding Form found in the client portal.
If there is more than one beneficiary, you may only distribute the amount that is your share.
The value of the metals on the date you sign the Distribution form will be reported to the IRS.
The metals will be distributed to the address on file for your account unless you provide a message in the portal requesting that we distribute them to an individual depository account in your name. NDTCO will verify the name and account number is held by the beneficiary.
The metals may not be distributed to a dealer or a depository account that is not in your name.
If there is more than one beneficiary, we will process the distributions once we have all documents from all beneficiaries.
You can expect the distribution of the precious metals to take 2 – 8 weeks. We process our distributions in the order we receive them and are dependent on the depository processing times.
Please see the NDTCO Fee Schedule for any associated fees with a distribution. In addition to NDTCO fees, the depository will have shipping and handling fees that you are responsible for. These are determined by the depository, are non-negotiable, and are not known until the request is sent to the depository.

Liquidating Your Precious Metals

The beneficiary will be responsible for choosing a precious metals dealer to purchase the metals and arrange the sale. If there is more than one beneficiary, they will need to agree on the dealer and the sale arrangements.
You can find the type and quantity of the metals you inherited in the decedent’s statement that was provided to you through your portal.
Once you choose a dealer you will need to complete the Buy/Sell/Exchange form in the portal. Instructions will be provided to you.
If there is more than one beneficiary selling the metals, all beneficiaries must complete the form.
You will be responsible for making sure the dealer sends the invoice or buy-back order to NDTCO.
NDTCO will process the sale once we have all forms completed and are in receipt of the invoice or buy-back order from the dealer.
Please note that NDTCO will need to work with both your dealer and the depository to complete this sale. We are dependent on their processing times. A typical Precious Metals sale can take 2 – 4 weeks, once we have received all Buy/Sell/Exchange forms and the invoice or buy-back order from the dealer.
See the NDTCO Fee Schedule for any associated fees for liquidating an asset. There may be shipping or handling fees associated with a liquidation. You are responsible for these fees.
Once the asset is liquidated, the cash is deposited in the decedent’s IRA account.
The cash will be moved to your own IRA account within one week from when the cash is available in the decedent account and fees have been paid.
You can choose to re-invest the cash in your new IRA, transfer to a new custodian, or take a distribution. All distributions will be reported to the IRS.

Internal Movement of Assets to Your IRA

NDTCO may complete an internal transfer of the metals to the current storage location 30 days after completion of the Inherited IRA Election form and receipt of notarized division, when applicable, unless you provide an alternative location from our list of approved depositories or initiate a liquidation or in-kind distribution within the 30 days.
The current location of the depository was provided to you in the portal message sent to you after you completed the Inherited IRA Election form.
The metals are stored at the depository that the decedent chose. You are not required to use the same depository; however, you will be responsible for any shipping and handling costs associated with the transfer of the metals to a different depository.
You will be responsible for any fees invoiced by the depository. You can see the list of depositories that NDTCO works with as well as their fees here: Precious Metals Depository – New Direction Trust Company (ndtco.com)
You may be required to complete a Depository Election form. The Life Events Specialist will provide that to you when necessary.
Please note that we are dependent on the processing times of the depository to move the metals to your new account. This process can take 1 – 3 weeks typically.
Once the metals have been moved to your account, you will receive a message in the portal.

NOTE: If you plan to liquidate the metals or complete an in-kind distribution of the metals, you will have 30 days from when you complete the Inherited IRA Election Form to initiate the distribution or sale. An NDTCO Life Events Specialist will work with you during this process, but it is going to take time and attention on your part. We ask that you communicate with us regularly on the steps you have taken. After 30 days from when you sign the Inherited Election form, if you have not initiated a liquidation or distribution, or there has been a lack of action or communication, NDTCO may begin the process of moving the metals to a depository account in the name of your IRA and you will be responsible for applicable fees. The depository storage fees are found here: Precious Metals Depository – New Direction Trust Company (ndtco.com). Any shipping fees will be quoted by the depository once we send them the request. You can review NDTCO fees here: Fees – New Direction Trust Company (ndtco.com).

FAQ

How long does the process take?

If the metals don’t divide equally, it will be dependent on how quickly the beneficiaries provide a notarized document to NDTCO. If you indicate you want to keep the metals, the process will be initiated within one week of completion of the Inherited IRA Election Form and receipt of the notarized document by all beneficiaries. However, if you indicate you plan to liquidate the metals and initiate a sale within 30 days then the processing time will be increased 2 – 4 weeks on average to process the sale. If the liquidation or in-kind distribution has not been initiated within 30 days, the metals may be moved to your own IRA storage account. NDTCO cannot control the processing times of dealers or depositories.

Can NDTCO advise me on what to do with the assets I have inherited?

No, NDTCO is a non-fiduciary custodian and cannot provide tax, legal or financial advice. You will want to talk with a trusted CPA or tax attorney if you need advice.

When the metals do not divide equally, why do we need a notarized document?

We require the notarized document to protect both the beneficiaries and NDTCO.

How do you determine the value of the precious metals?

We receive valuation from a 3rd party resource. These estimated values do not include mark-ups, discounts, or commissions from the dealer. The values shown may also not reflect the listed date’s value and should not be relied upon as the price you will find in the marketplace.

Will I have to pay taxes on the precious metals since I inherited them?

Moving your metals to your IRA is not a taxable event. At some time, you may choose to distribute your assets. If the decedent had a pre-tax account, such as a Traditional or SEP IRA, the distribution is typically taxable. If they had a Roth IRA, then the distribution may not be taxable. You will want to check with your CPA or a tax attorney to understand what tax rules apply to the account you have inherited.

Will NDTCO notify me when I need to take a distribution and how much I need to take?

Generally, a designated beneficiary must distribute the entire account within 10 years after the date of death. There are multiple options for an Eligible Designated Beneficiary. You should consult your trusted CPA or a tax attorney to make sure you understand your options, if an RMD is required, and the consequences for each. It is the responsibility of the account holder to understand when and how much needs to be distributed from an IRA they have inherited.

Why do I have to wait for the other beneficiaries to complete their paperwork before I can have my precious metals?

The value of metals changes daily and we want to make sure the decedent’s beneficiary designation is honored. In addition, it reduces the chance of errors.

Are there any fees associated with this process?

We do not charge our application fee to beneficiaries of our NDTCO clients. In addition to the fees listed in our fee schedule, there may be storage fees, processing, or shipping costs from the depository. Any past due fees or upcoming fees on the decedent’s account are the responsibility of the beneficiaries. The fees will be split according to the percentages listed in the beneficiary designation. Our fee schedule outlines all NDTCO fees associated with your account. It can be reviewed here Fees – New Direction Trust Company (ndtco.com) Depository fees can be found here Precious Metals Depository – New Direction Trust Company (ndtco.com) Any shipping and handling fees are charged by the depository and will be determined once a request has been sent to them.

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