Once the minor has reached 18 years of age, ITF accounts can be converted into a Joint account (between the same parent and child) through the following steps:
1. Open a separate Joint account with the child (For the account opening procedure, please see this link. Please note that you will be issued a new COL account number. The initial deposit can be waived)
2. Once you have your new COL account number, you can request for a transfer of assets (stocks and cash) from your ITF account into the Joint account. This request will also entail a closure of your ITF account.
Some things to consider:
- Mutual funds cannot be transferred. These will be liquidated and transferred as cash instead.
- If there is a change in citizenship in the account from local to foreign (one or both account holders is a foreign citizen), stocks that have restrictions on foreign investors cannot be transferred. These stocks also will be liquidated and transferred as cash.
- REITs are also unauthorized to be transferred due to transfer restrictions, aside from Mutual Funds.
If you do not wish to liquidate your mutual funds and restricted stocks, you can still open a separate joint account but the transfer request cannot be done. You will still retain your ITF account as a separate account.
We have attached the Asset Transfer Form needed to request for the transfer after you have opened your Joint account. This form will need to be printed and signed before being sent back to us via email for processing.