Fidelity Joint Brokerage Account Beneficiaries: What You Need to Know

If you have a Fidelity joint brokerage account, it's essential to understand how to name beneficiaries and what happens to the account in the event of a death. Fidelity allows you to name one or more beneficiaries for your joint account.

To name a beneficiary, you'll need to provide their full name, address, and Social Security number or Individual Taxpayer Identification Number (ITIN). You can also name a contingent beneficiary in case your primary beneficiary is unable to receive the account assets.

The beneficiary you name will receive the account assets after your death, unless you've made other arrangements or the account is subject to probate. It's a good idea to review and update your beneficiary designations periodically to ensure they reflect your current wishes.

If this caught your attention, see: Naming Trust as Beneficiary of Brokerage Account

When you own a joint brokerage account, assets can transfer to the other account holder or beneficiaries according to the specifications in your will or other transfer documents. This can be a good option for couples or business partners who want to share ownership of the account.

Assets in a trust account transfer according to the terms of the trust, which can be set up to pass assets to beneficiaries at specific times, such as when a child graduates from college. This can help avoid probate and make the transfer process smoother.

A trust account requires a trustee to manage the account according to the investment specifications of the trust. This can be a third party, such as a bank or a lawyer.

Here are the main types of brokerage accounts:

It's essential to provide your brokerage firm with a copy of the trust document to ensure a smooth transfer of assets.

To start, you need to know that taking the time to choose your beneficiaries now can help your family avoid probate later. You'll need to assign at least one beneficiary for each account, and most of the time you can add, change, or delete your beneficiaries online.

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You'll need to provide some basic information about your beneficiary, such as their type (e.g., spouse, non-spouse, trust, entity), full name, date of birth, and social security number (optional). This information is used to distribute your assets to your beneficiaries without requiring a will or other legal documents.

If you don't see the account you want to update on the Beneficiary Summary page, it may be a workplace plan that's not serviced by Fidelity. In that case, you'll need to contact your plan's administrator or trustee to request changes.

You can also name contingent beneficiaries, who will receive your assets if there is no living primary beneficiary. Note that some retirement accounts or plans may require spousal consent before you can add or change the beneficiary.

Here are the basic ways assets can be distributed at death, as mentioned in the article:

Assets can be distributed at death in several ways, such as with a beneficiary designation, through a jointly held account, by probate, or a trust.

Each method of transfer has its own advantages and important considerations. It's critical for your estate plan to coordinate between these methods to be successful.

Passing on assets via beneficiary designation and joint tenancy with rights of survivorship (JTWROS) is generally easy, low-cost, and avoids probate.

However, a lack of coordination between these methods and the rest of your estate plan could jeopardize your entire estate plan and have significant unintended estate tax consequences.

Here are the 4 basic ways assets can be distributed at death:

A mismatch between account titling and beneficiary designations can thwart your estate plan's intentions, even if you have a will and/or trust in place.