Transferring assets

Transferring assets

The survival and expansion of a business depend on the assets being greater than the liabilities. Transferring assets is done for various reasons, including restructuring, corporate growth, demerger, reconstruction, etc. Before moving assets, various aspects need to be taken into account, including the asset’s value, location, and the location to which it must be moved, among others. 

What is transferring assets? 

A transfer of assets is when property, money, or ownership rights are moved from one account to another. 

 When there is a change in ownership, such as when an investor sells real estate holdings, a transfer may call for an exchange of money. In this instance, the seller transfers ownership to the buyer, and at the same time, the buyer transfers payments to the seller in an amount equal to the agreed-upon price. 

Understanding transferring assets 

The definition of a transfer varies widely depending on the sector and type of transaction. A transfer entails moving money or property with the potential for transferring ownership. The migration of an account from one bank or brokerage to another may also be referred to as a transfer.  

 When a seller and buyer transact (the asset is moved from the seller’s custodian to the buyer’s). Also, when an asset owner switches brokerage firms, or when an asset owner moves assets between one or more brokerage accounts they control, the transfer processes are used. 

Types of Transferring Assets 

The types of transferring assets are as follows: 

  • Bank transfers 

A transfer happens when an account holder moves money from one account to another, such as from a checking account to a higher-interest savings account or from savings to an individual retirement account (IRA) account. The transfer doesn’t need to occur within the same bank. It can be an interbank transfer from a bank A-owned to a bank B-owned account. 

  • Brokerage transfers 

Typically, investors move money and assets inside and outside their brokerage accounts. The transfer is made from another investment account held with the same or a different broker if an investor needs to fund his investment account to buy more shares. 

  • Title transfers of assets 

When an asset is sold or given to a person or a company, the title to that asset can be transferred. When a homeowner sells his house to someone else, he must complete the quitclaim deed or any other paperwork required to transfer the ownership of the property.  

 A landowner can transfer his title to any person or company. Selling the property, giving it as a gift, transferring the title willingly to a beneficiary, complying with a court order, or filing for bankruptcy can all result in the transfer of ownership. 

  • Transfer of a loan 

Loan Transfers are transfers as well. For instance, if a homeowner has an assumable loan and the buyer is approved, the homeowner can transfer the mortgage to the buyer. Both parties to the transaction might benefit from this outcome. When an automobile is sold, the seller may transfer the title and the car loan to the new owner if the buyer is deemed creditworthy. 

Benefits of transferring assets 

Depending on how fully an item is used for the benefit of society, asset transfers may have significant and diverse advantages. As they are directly accountable to their consumers, community-based organisations develop engagement strategies that are more effective than those of other types of ownership.  

 Compared to state-run services, community-based planning and delivery of services can make them more responsive and inclusive. Communities may also give issues significant to them a long-term focus, which is difficult for profit-driven private sector organisations to maintain. 

 Asset transfer can empower communities to influence the areas where they live and work by giving control to community-based organisations. Engage communities in the co-design, transformation, and delivery of the services they receive.  

Be a spark for the growth of volunteerism, volunteer opportunities, businesses, and skills. Encourage community anchors and resilience in underserved areas by providing space and possibilities for local business development. 

Examples of transferring assets 

In the United States, the following examples of asset transfers have gained popularity. When faced with the exorbitant cost of nursing home care and the desire to leave their property to their offspring, some senior middle-class individuals transfer their assets to them.  

 The elderly can then fulfil the income and net assets requirements to be eligible for government-funded nursing home care. As this practice diverts funding from needy individuals, state and federal governments have worked to stop it.  

 Living people may also give gifts to others. A present made while the donor and donee are still alive is known as an “inter vivos gift” and is final once it is made. A person may give up to US$10,000 annually to each recipient without paying or submitting a gift tax return under federal tax rules. Any gifts that go over the annual exclusions are subject to taxation. 

Frequently Asked Questions

Transfer procedures are employed anytime a buyer and a seller trade with one another (the asset is moved from the seller’s custodian to the buyer’s), when an asset owner switches brokerage firms, or when they move assets between one or more brokerage accounts they control. 

Assets may be transferred through novation, which involves changing the terms of the original agreement with the debtor, participation, which involves granting the transferee a right to a portion of the earnings from the sale of the assets; or assignment, which refers to a full legal transfer. 

Asset transfer banking occurs when an account holder transfers money from one account to another, from a checking account to a savings account with a better interest rate, or from savings to an IRA account. 

A contract for the sale or acquisition of business assets may be used to facilitate the transfer procedure itself. Money transfers can take the form of a loan, the purchase of stock in the receiving company, dividend payments, or dividends if the beneficiary company owns shares of the transferor company. 

 

The sale deed, gift deed, and relinquishment deed are your three legal options if you’re trying to transfer assets. A sale deed or transfer deed is the most popular method for selling real estate for money. 

 

Related Terms

    Read the Latest Market Journal

    Decoding FX CFD 2.0

    Published on Feb 20, 2024 47 

    This article is aimed at availing information and knowledge essential to intermediate forex traders. It...

    Weekly Updates 19/2/24 – 23/2/24

    Published on Feb 19, 2024 67 

    This weekly update is designed to help you stay informed and relate economic and company...

    Unlock Prosperity with 5 Sure-Fire Financial Instruments!

    Published on Feb 14, 2024 184 

    In Singapore, the concept of guaranteed returns may evoke the spirit of prosperity, reminiscent perhaps...

    Weekly Updates 12/2/24 –16/2/24

    Published on Feb 13, 2024 69 

    This weekly update is designed to help you stay informed and relate economic and company...

    Decoding FX CFD

    Published on Feb 7, 2024 97 

    The foreign exchange market commonly known as the forex or FX market, is a cornerstone...

    Chinese New Year: Three Cases For CFD Trading

    Published on Feb 6, 2024 139 

    The Chinese New Year is a festive season may be celebrated by some parts of...

    Weekly Updates 5/2/24 –9/2/24

    Published on Feb 5, 2024 62 

    This weekly update is designed to help you stay informed and relate economic and company...

    The Intricate Dance of Forex Trading: Unveiling the Psychological Game

    Published on Feb 2, 2024 56 

    Understanding the forex market The foreign exchange market, also known as the forex market, is...

    Contact us to Open an Account

    Need Assistance? Share your Details and we’ll get back to you

    IMPORTANT INFORMATION

    This material is provided by Phillip Capital Management (S) Ltd (“PCM”) for general information only and does not constitute a recommendation, an offer to sell, or a solicitation of any offer to invest in any of the exchange-traded fund (“ETF”) or the unit trust (“Products”) mentioned herein. It does not have any regard to your specific investment objectives, financial situation and any of your particular needs. You should read the Prospectus and the accompanying Product Highlights Sheet (“PHS”) for key features, key risks and other important information of the Products and obtain advice from a financial adviser (“FA“) pursuant to a separate engagement before making a commitment to invest in the Products. In the event that you choose not to obtain advice from a FA, you should assess whether the Products are suitable for you before proceeding to invest. A copy of the Prospectus and PHS are available from PCM, any of its Participating Dealers (“PDs“) for the ETF, or any of its authorised distributors for the unit trust managed by PCM.  

    An ETF is not like a typical unit trust as the units of the ETF (the “Units“) are to be listed and traded like any share on the Singapore Exchange Securities Trading Limited (“SGX-ST”). Listing on the SGX-ST does not guarantee a liquid market for the Units which may be traded at prices above or below its NAV or may be suspended or delisted. Investors may buy or sell the Units on SGX-ST when it is listed. Investors cannot create or redeem Units directly with PCM and have no rights to request PCM to redeem or purchase their Units. Creation and redemption of Units are through PDs if investors are clients of the PDs, who have no obligation to agree to create or redeem Units on behalf of any investor and may impose terms and conditions in connection with such creation or redemption orders. Please refer to the Prospectus of the ETF for more details.  

    Investments are subject to investment risks including the possible loss of the principal amount invested. The purchase of a unit in a fund is not the same as placing your money on deposit with a bank or deposit-taking company. There is no guarantee as to the amount of capital invested or return received. The value of the units and the income accruing to the units may fall or rise. Past performance is not necessarily indicative of the future or likely performance of the Products. There can be no assurance that investment objectives will be achieved.  

    Where applicable, fund(s) may invest in financial derivatives and/or participate in securities lending and repurchase transactions for the purpose of hedging and/or efficient portfolio management, subject to the relevant regulatory requirements. PCM reserves the discretion to determine if currency exposure should be hedged actively, passively or not at all, in the best interest of the Products.  

    The regular dividend distributions, out of either income and/or capital, are not guaranteed and subject to PCM’s discretion. Past payout yields and payments do not represent future payout yields and payments. Such dividend distributions will reduce the available capital for reinvestment and may result in an immediate decrease in the net asset value (“NAV”) of the Products. Please refer to <www.phillipfunds.com> for more information in relation to the dividend distributions.  

    The information provided herein may be obtained or compiled from public and/or third party sources that PCM has no reason to believe are unreliable. Any opinion or view herein is an expression of belief of the individual author or the indicated source (as applicable) only. PCM makes no representation or warranty that such information is accurate, complete, verified or should be relied upon as such. The information does not constitute, and should not be used as a substitute for tax, legal or investment advice.  

    The information herein are not for any person in any jurisdiction or country where such distribution or availability for use would contravene any applicable law or regulation or would subject PCM to any registration or licensing requirement in such jurisdiction or country. The Products is not offered to U.S. Persons. PhillipCapital Group of Companies, including PCM, their affiliates and/or their officers, directors and/or employees may own or have positions in the Products. Any member of the PhillipCapital Group of Companies may have acted upon or used the information, analyses and opinions herein before they have been published. 

    This advertisement has not been reviewed by the Monetary Authority of Singapore.  

     

    Phillip Capital Management (S) Ltd (Co. Reg. No. 199905233W)  
    250 North Bridge Road #06-00, Raffles City Tower ,Singapore 179101 
    Tel: (65) 6230 8133 Fax: (65) 65383066 www.phillipfunds.com