In the unfortunate event of the death of the owner of a DCF Income Payment, executors and heirs have several options.
For Payment Streams Owned by an IRA
If the payment stream was owned by an IRA, the beneficiary designation of the IRA account will govern how the IRA ownership is transferred. The IRA is the owner of the payment stream and thus the payment stream will continue to pay into the IRA even if the IRA ownership is transferred to a beneficiary. Contact the Self Directed IRA Custodian, typically GoldStar Trust, for more information on beneficiary designation.
That said, a payment stream itself is an asset that can be sold at any time, whether it’s in an IRA or not.
For those who inherit IRAs that contain one or more payment streams, they may want to consider selling the payment streams for cash to pursue other investments, or they may seek to take the stream out of the IRA as a distribution in-kind. Either of these are viable options to comply with the 10-year required minimum distribution rules enacted in the 2020 SECURE Act.
In either a sale or a distribution in-kind,contact DCF Exchangefor valuation of the remaining payments and for repurchase offers for those payments.
For Payment Streams Outside of IRA
Heirs of purchasers of non-qualified DCF Income Payments have options as well.
First, payment streams owned by deceased individuals can be transferred to heirs directly by communicating with the payment servicer.The disbursing department at GoldStar will require a copy of the will and death certificate in order to change ownership of the remaining payments and update the payee banking details in accordance with the terms of the will.
That said, individuals who inherit a payment stream but would instead like a lump sum payout can sell the stream back to DCF Exchange. Please contact us at any time for the valuation of the remaining payments and for repurchase offers for those payments.
Payment streams owned in a trust will continue to pay to the trust. However, after a death, a new trustee or beneficiary may wish to sell payment streams owned by the trust. This is easily accomplished, simply contact DCF exchange for valuation and repurchase offers.
Download the ‘What To Do When DCF Purchasers Die’ instructions here. This is an easily shared document, useful for advisors, attorneys, executors and heirs.