Ask Terry Questions buying TBills in a Brokerage Acct

buying TBills in a Brokerage Acct

By Terry Savage on January 06, 2024 | Chicken Money

i am POA for my 91 year old mother. I have most of her assets in an IRA and a regular self directed accounts at Chas Schwab. i have been laddering treasuries in both brokerage accounts haveing the securities mature every month so that in case we need more cash to pay for her monthly care. My question is: is there any disadvantage to buying these securities in the brokerage accounts at the secondary market? I tried to set up a Treasury Direct account but had trouble because she dosent have a valid state ID with her current address. (she is 91 and is homebound all her ID’s are expired.)

Terry Says

It might cost you a bit more to buy Treasuries in the secondary market through a brokerage firm, but that shouldn’t be a big impact. However, opening an account at doesn’t require any form of state ID. You’d just need a checking account and her SS number.

Actually, the larger question is whether she has a current estate plan, preferably a Revocable Living Trust. That would make you a co-trustee, and you would open the TreasuryDirect account, and retitle the bank account and Schwab account in the name of the Trust. That will go a long way to avoiding estate problems if she becomes incapacitated. The POA is important — but it doesn’t solve ALL problems.

I suggest you contact an estate planning attorney.



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