This article will cover if transfers are permitted and how you could request one, and why you cannot designate beneficiaries
Can I designate a beneficiary on my CrowdStreet account?
Because of the regulatory challenges associated with transfers of investment in private offerings, at this time, you cannot designate a beneficiary for your CrowdStreet account. Investors or prospective investors should consult with an estate planner, tax professional, and/or legal adviser regarding estate planning related to your Investing Accounts on the CrowdStreet Marketplace, and carefully review the details in each offering document as it relates to transfers of the membership interest before making an investment.
Can I transfer ownership of an investment?
You might want or need to transfer your investment to another investor for several reasons. These reasons can include:
- Divorce
- Creation of a new investing entity
- Gift
Whatever the reason, the answer is: possibly, but not through the CrowdStreet Marketplace. CrowdStreet is a direct-to-investor marketplace and not an asset sponsor unless you have invested in a CrowdStreet Fund. Additionally, due to securities law, we cannot facilitate the sale or transfer of one investor’s position to another.
Therefore, requesting a transfer of ownership for your investment will require the sponsor to get involved. Even then, the sponsor may not allow you to transfer your investment. It will depend on the investment and the sponsor. Investors should review their original offer documents, such as the operating agreement and subscription agreements, to understand their rights, obligations, and remedies when it comes to transferring an investment.
Additionally, the person or entity you would like to transfer your investment to must be an accredited investor. Furthermore, there may be fees associated with transfers. Any fees associated are at the sole discretion of the sponsor.
If you would like to request a transfer of your investment:
- Create a new Investing Account that you want to transfer ownership to.
- For information on creating or updating an Investing Account, refer to the article: How to create or update an Investing Account.
- Please reach out to CrowdStreet at help@crowdstreet.com to initiate your transfer request. Please advise as to which investment(s) specifically you intend to transfer. CrowdStreet will then relay the requirements of the sponsor(s). Please note not all sponsors accept a transfer of ownership.
- Once you have completed the necessary paperwork, CrowdStreet will share the documents with the sponsor for a final review and execution. Once approved, CrowdStreet will finalize the transfer in your Portfolio.
What happens to my investment when I pass away?
When an investor passes away, those managing the estate will generally need to provide the sponsor and CrowdStreet with a death certificate, documentation showing proof of authority to act on behalf of the estate (court probate/will), and the required transfer documents mentioned above. Please contact CrowdStreet Investor Relations should you need more information: help@crowdstreet.com.