Beneficiary information
ARTICLE TAKEAWAYS
- Why it’s important for investors to regularly review and update their beneficiary information
- Understand the default provision for various account types
- How clients can update their beneficiaries or successor owner
It’s important for investors to regularly review and update their beneficiary designations. Life events such as births, deaths or divorce can impact these choices. Clients can review their current beneficiary information on their quarterly statements or by logging in online. You can also review their information by logging in to Client Accounts. Additionally, to access a list of clients who haven’t named or updated a beneficiary in the past 5 years, order an IRA Beneficiary Designation Report.
Because beneficiary designations may carry significant tax and legal implications, clients are encouraged to consult a tax advisor or estate planner before making or revising these decisions.
Your client may name beneficiaries when completing the account application. Traditional, Roth, SIMPLE and SEP IRA account owners can make updates by logging in to their account on the investor website or by completing the IRA Beneficiary Change form. For other account types, your client can make updates by completing the appropriate form.
In the event of your client’s passing, if they haven’t named beneficiaries, or if all named beneficiaries disclaim or pass away before them, the assets will be paid according to the CB&T Custodial Agreement default designation:
- The account owner’s spouse is the beneficiary or, if none, the owner’s children equally
- If an account owner’s child predeceases the owner, then that child’s share is distributed to their own children (the owner’s grandchildren) equally or, if none, the surviving children equally
- If none of the above survives the account owner, the beneficiary is the owner’s estate
For more information on IRA beneficiaries, visit IRA beneficiary designations.
Your client may name a successor owner when completing the account application and can make updates by logging in to their account on the investor website. Alternatively, your client can complete the CollegeAmerica Account Change Request.
For CollegeAmerica accounts, if an account owner passes away, the successor owner becomes the account owner. If there is no successor owner, the beneficiary will become the account owner if age 18 or older. Otherwise, the individual(s) responsible for the estate of the account owner will be authorized to name a new account owner.
For more information on changing a successor owner, visit Managing CollegeAmerica accounts.
Your client may name a TOD beneficiary when completing the account application and can make updates by logging in to their account on the investor website. Alternatively, your client can complete the Transfer on Death (TOD) Registration Request.
The default provision for non-retirement accounts with a TOD beneficiary designation states that if no beneficiary is named or if none of the named beneficiaries are living at the time of the account owner’s death, then the default designation will be the account owner’s estate.
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