• Welcome to P2P Lending / NFT Lending Forum.



This was the original Lend Academy peer-to-peer lending forum, since forensically restored by deBanked and now reintroduced to

To restore access to your user account, email [email protected]. We apologize for errors you may experience during the recovery.

Main Menu
NEW LOANS:   | hitmonlee.eth 1.500 Ξ | greninja.eth 0.800 Ξ | 981.eth 3.000 Ξ | ALL

EstatePlanning for P2P Accounts

Started by Peter, March 05, 2020, 11:00:00 PM

Previous topic - Next topic


How have P2P investors handled their P2P accounts in their estate plans?  We are currently updating ours and would appreciate ideas!

In the simplest scenario, suppose a joint account at LC or Prosper, but only one spouse is interested in peer-to-peer investing, and the other is perhaps not really computer savvy at all.  When the P2P investor spouse (that's me, of course) passes away, the remaining spouse inherits the account, and assuming she doesn't really want to be a P2P investor, she has a few issues:
     Canceling auto invest, API or 3rd party investments in new loans
     Transferring cash elsewhere as it accumulates from interest and payoffs.
     Dealing with P2P taxes.
Unless she can sell notes via folio (LC only), there will be a time lag of 3 to 5 years when the account can't be closed. 
(If the account was an IRA, then the tax problem is solved but $ transfers are taxable (or to other IRAs).

Now consider a tougher scenario - unmarried person as the P2P investor, with, say 5 beneficiaries.  First, you have the same issues as with a spouse - does each beneficiary really want to be a P2P investor?  Second, do Prosper/LC have a process for splitting a P2P account? 

For an after tax account, Prosper does not even have a way to name a beneficiary, so it's probably best to use a trust account there.  Your general estate plan may call for distribution of all trust/estate assets to the beneficiaries asap, but is that even possible, or does the trust take 3-5 years to wind down (as successor trustee fees accumulate)?

For IRA accounts, you can name multiple beneficiaries at the IRA custodian, but what happens when the custodian tells LC/Prosper to split the account five ways?

Maybe the best estate plan is to start winding down my P2P accounts 3-5 years before I die?  Thanks in advance some help on this as you can see I pretty confused!



For the simplest scenario, I showed my wife how to log into LC and refresh the API token.  That way all future investing from my app at the time was halted.  From there I just said transfer cash out as it accumulated.  No IRA or anything else in my case to have to worry about.


Thank you both for replying.  I was hoping there was some magic solution but maybe not!  Given economy downturn due to Covid-19, not sure I should be making new P2P loans anyway!

NEW LOANS:   | hitmonlee.eth 1.500 Ξ | greninja.eth 0.800 Ξ | 981.eth 3.000 Ξ | ALL