TOD beneficiaries

Before you get started

Consider talking to a financial professional, tax advisor or estate planner. They can offer advice and help answer questions regarding the tax and estate planning implications of your beneficiary designation.

When designating an account beneficiary, in addition to providing their name, you should include their relationship, address, date of birth and/or Social Security number.

Things to consider

• Beneficiary allocations must be provided in whole percentages and equal 100%
• Some states do not allow the TOD registration on joint accounts. Consult with a tax advisor for additional information.
• Beneficiary updates replace all existing beneficiaries on the account, so you must specify all primary and contingent beneficiaries for the account. Partial updates are not allowed.
• A TOD beneficiary does not have ownership or account access during the lifetime of the account owner(s)
   

What is a TOD registration?

The TOD registration allows investors to designate beneficiaries for individual and joint accounts. Upon the passing of all account owners, ownership passes directly to the designated TOD beneficiary(ies).

Types of TOD beneficiary designations

Primary beneficiary:

The primary beneficiary inherits the assets after the passing of the account owner(s). If multiple primary beneficiaries are named and one of the beneficiaries has passed, that beneficiary’s portion will be divided proportionately among the surviving beneficiaries. If all primary beneficiaries have passed, the assets will go to the contingent beneficiaries, if any.

Contingent beneficiary:

If all the primary beneficiaries pass away before the account owner(s), the contingent beneficiary inherits the assets after the passing of the owner(s). If multiple contingent beneficiaries are named and one of the beneficiaries has passed, that beneficiary’s portion will be divided proportionately among the surviving beneficiaries. If all contingent beneficiaries have passed, the assets will go to the estate of the account owner(s).

How to add the TOD registration to an existing individual or joint account

A TOD beneficiary can be designated on individual or joint account types. To designate a TOD beneficiary on an existing account, complete the Transfer on Death (TOD) Registration Request (PDF).

How to change the TOD beneficiary(ies) on an existing individual or joint account

Individual and joint TOD beneficiaries can be viewed and updated online. You can also request to update existing TOD beneficiaries in writing by completing the Transfer on Death (TOD) Registration Request (PDF) or submitting a letter of instruction signed by the account owner(s).