Wednesday, March 30, 2011
Either you control your attitude or it controls you.
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I'm venting here. I'm so annoyed I want to spit. If I'm ever in south Jersey, there's a certain bank manager I want to strangle.
Many moons ago when Ex#2 and I split, we owned a block of stock jointly. He got half and I got half, and we were to transfer our halves to each of us individually.
Well, I didn't do the transfer for my half, because Daughter was small, and if anything happened to me he'd be raising her, and if I left the stock joint it would go directly to him avoiding probate and tax, and that would be fine and just. So I simply had the account changed to my SS# and the dividends coming to me, and then of course I never got around to transferring them.
Cleaning out the old house I found the certificates. Of course they've split multiple times, so there are also shares in a joint "book-entry" account held at the transfer agency. Ack! I'd better get them transferred now, because if anything happened to him (and I don't see how he is possibly staying alive), I'd be the one with the probate and tax problems.
I called the transfer agent, and they sent me the form to transfer all the shares and the instructions. It's pretty straightforward. He and I each sign the form, and we each get what's called a Medallion Signature Guarantee. The medallion is absolutely required, and it says so several times, both on the form itself, on the cover letter, and on the instruction sheets. Two separate signatures as joint owners of the stock, and two medallions, one for each signature. Almost any decent sized bank can do the medallions.
So I filled out the form and sent it to him, along with a letter instructing him what to do, and the "How To" and "FAQ" sheets from the transfer agent. I even put stickies on the form with "sign here", "date here", and "medallion here" arrows.
I have to give him credit. He's trying his best. He's not the main problem, it's his local bank. (Well, he's a little bit of a problem because he doesn't know enough about the process to argue with his bank. Either that or he's already pissed them off enough on other occasions that they're just giving him a hard time -- and that's entirely possible. He does that. I can't believe the bank manager doesn't know how to transfer stock.)
Short lesson:
A Medallion Signature Guarantee and a Notary Public Stamp are similar in that you have to sign the document in front of the guarantor or notary, you have to show identification to prove you are who you claim to be, you have to affirm that you are signing of your own free will and demonstrate that you are sober and of sound mind sufficient to understand the significance of what you are signing. But there are also a few big differences.
The notary public has no financial stake in the document, and he/she can carry the stamp around in a pocket. The notary doesn't even have to know what the document is - just that the signature is that of the person signing. They'll usually accept a driver's license, and don't have to know the signator personally.
The medallion, on the other hand, carries insurance against forgery. If the signature turns out to be forged, the institution that applied the medallion is responsible for the inherent value of the document. It's a big deal.
All transfers of stock absolutely require the medallion, because the stock transfer agent never sees the actual signers, so the medallion transfers the financial responsibility to the medallion holder, who did see the signers and has the responsibility of authenticating the signator. That's why it's usually banks who do medallion signature guarantees, only an officer of the bank is allowed to use it, the medallions are kept under separate lock in the vault, and usually they will do them only for people who have a long-standing account with them.
Ok. So Ex#2 takes the transfer form to his bank, and asks for a Medallion Signature Guarantee.
The bank officer refuses.
Why? Because, says the bank manager, only
sales of stock require a medallion.
Transfers don't. According to him, just taking Ex#2 off the account needs only a notary stamp.
Duh? Like, uh, there's no chance of forging a signature to take someone's name off stock? No financial risk there? It's TRANSFERRING OWNERSHIP!
Ex#2 called me from the bank. I told him to have the bank manager call the transfer agent. He did. Next phone call, Ex#2 says the bank manager and the transfer agent got into an argument on the phone, and incredibly, the bank manager tried to tell the transfer agent what the agent needed to see.
Duh? Can you spell "arrogance"?
Anyway, the bank manager refuses to medallion guarantee the signature. That's the only bank where Ex#2 has accounts.
Ex#2 had the bright idea of selling me the stock for $0, "then the bank manager will do the medallion".
Duh?
First off, no contract is valid unless both parties receive "consideration", so it would have to be for, say, $1. Secondly, the sale would be reported to the feds, and, uh, do you want to talk about capital gains? You want to explain to the IRS a $1 sale of a gazillion dollars worth of stock? Look like a tax dodge, maybe? No? Ok, no selling.
More phone calls. Ex#2 lives in the tomato fields of south Jersey. There's only one other bank, in the next town over. So he went there. They won't do it because he doesn't have an account with them.
So he opens an account with them.
But - they want more documentation. They want an official document from the transfer agent as to how many shares are being transferred, and the total value. Ok, I can understand their wanting to know what their risk is. BUT, they also want a notarized statement from ME requesting the transfer.
Duh? Why?
It's taken this whole day. A dozen phone calls hither and yon to and from Ex#2 and the transfer agency, pulling together the additional documentation the new bank wants, writing another letter explaining what I'm sending and requesting that they please allow my ex-husband to sign stock over to me (duh?). I'm surprised they haven't asked for a notarized copy of the 28-year-old divorce decree.
I had only two things I absolutely wanted to do today - take a box to the post office for mailing, and pull together the tax stuff for my accountant, and I've got neither done, and it's too late now for the post office. Yeah, I've got a cell phone, but I had to stay here near the file cabinet and the computer between all those calls. And poor Ex#2 has been doing the running around and getting the runaround.
Buncha freakin' idiots down there in south Jersey. Probably being poisoned by all that chemical fertilizer sprayed in the air. Oughta go back to cow manure.
(Grumble.)
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