An In-Trust-For (ITF) Account allows a Primary Account Holder (the trustee) to manage assets on behalf of a Beneficiary. This is typically used when the Beneficiary is a minor or when the Primary Account Holder wants to set aside investments for the Beneficiary's future use.
If you're setting up your first DragonFi account, our Getting Started hub walks through the basics before you open an ITF account.
Who Can Open an ITF Account?
- The Primary Account Holder must be of legal age and will manage the account.
- The Beneficiary can be:
- A minor (below 18 years old).
- An adult (18 years old and above), but the ITF account must still be managed by the Primary Account Holder.
How Does an ITF Account Work?
- The Primary Account Holder owns and controls the assets in the account until they decide to transfer them to the Beneficiary.
- The assets in the ITF Account can be transferred to the Beneficiary's own account when:
- The Primary Account Holder submits a written request to DragonFi, either alone or jointly with the Beneficiary.
- The Beneficiary has an active DragonFi account (see how to open a DragonFi account), either individual or joint with the Primary Account Holder.
- All applicable taxes, fees, and charges are fully paid.
- If the Primary Account Holder passes away before transferring the assets, the ITF Account will form part of their estate. The Beneficiary must submit proper legal documents (such as extrajudicial settlement of estate or a court ruling) before the account can be transferred under their name.
What Documents Are Required to Set Up a Beneficiary Account?
To transfer assets from an ITF Account, the following must be submitted:
- Birth Certificate (issued by PSA/NSO) of the Beneficiary.
- Valid ID of the Beneficiary (e.g., School ID for students, Government ID for adults).
- Completed DragonFi Account Opening Documents for the Beneficiary (individual or joint account).
- Letter of Instruction from the Primary Account Holder requesting account consolidation.
Can the Primary Account Holder Withdraw Funds?
Yes. The Primary Account Holder can withdraw cash from the ITF Account and transfer it to their own bank account if needed.
What Else Should I Know Before Opening an ITF Account?
- Taxes and Fees: The Primary Account Holder and Beneficiary are responsible for paying all taxes, trading fees, and other applicable charges for the transfer of assets.
- Legal Responsibility: By opening an ITF Account, the Primary Account Holder acknowledges that DragonFi is not liable for any losses, penalties, or disputes arising from the management and transfer of the account.
- Account Modifications: If a Primary Account Holder requests to convert an ITF account into a joint account, they must ensure compliance with tax laws and regulations.