Fidelity Investments: Viewing And Managing Your Beneficiaries

A beneficiary is a person or entity designated to inherit your assets upon your death. This can include retirement accounts, brokerage accounts, and insurance policy proceeds. Fidelity Investments allows you to view and update your beneficiaries online. To do so, log in to your NetBenefits account and provide the beneficiary type (e.g. spouse, non-spouse, trust, entity) and their Social Security number (optional). You can also name multiple primary and contingent beneficiaries.

Who can be a beneficiary?

A beneficiary is a person or entity that receives the benefits of property owned by someone else, usually as part of an inheritance. This can include individuals, such as a spouse or adult child, or entities, such as a trust or charitable organisation.

When choosing a beneficiary, it's important to consider those who depend on you financially, such as family members, or those outside your family who you wish to care for or reward. You may also wish to consider organisations you have supported over time.

There are some restrictions on who can be a beneficiary. For example, minor children cannot inherit retirement accounts or life insurance payouts. In this case, you could set up a trust to manage the inheritance on their behalf until they are of legal age.

In some cases, spousal consent may be required to name a beneficiary other than your spouse on certain accounts.

What is the difference between a primary and contingent beneficiary?

A primary beneficiary is the first person or entity in line to inherit your assets after your death. You can name multiple primary beneficiaries, and they will each receive a specified percentage of your assets.

A contingent beneficiary, on the other hand, is the second in line to inherit your assets. They will only receive your assets if the primary beneficiary or beneficiaries have died, cannot be found, or refuse the inheritance.

For example, if you have two children and name your son as the primary beneficiary and your daughter as the contingent beneficiary, only your son would inherit your assets upon your death, unless he dies before you or cannot be located, in which case your daughter would inherit the full sum.

You can also name your spouse as the primary beneficiary and your children as contingent beneficiaries. In this case, your children would only inherit if your spouse dies before you.

How many beneficiaries can I add?

You may add up to 50 primary and 50 contingent beneficiaries to your account. However, only a maximum of 8 primary and 8 contingent beneficiaries can be processed online. If you would like to add more than 8 primary or contingent beneficiaries, you will need to download and complete a Beneficiary Designation Form.

You can add, change, or delete your beneficiaries online in just a few minutes. To get started, you will need to provide the beneficiary type (e.g., spouse, non-spouse, trust, entity) and their Social Security number (optional). You can also name contingent beneficiaries, who will receive your assets if there is no living primary beneficiary.

It is important to keep your beneficiary information up-to-date to ensure that your loved ones receive the assets you intend for them.

What is a Transfer on Death registration?

A Transfer on Death (TOD) registration is a designation that allows an account holder to pass on assets from their brokerage accounts, stocks, and bonds upon their death, bypassing probate. The account holder specifies the percentage of assets each beneficiary will receive, and the executor can then distribute them without first passing through probate.

TOD is not applicable to retirement accounts like IRAs because retirement account beneficiaries must follow withdrawal and taxation rules. Instead, retirement accounts have named beneficiaries, with regulations determining when beneficiaries can make withdrawals, how much they can withdraw, and how they are taxed.

TOD is also applicable to vehicles in some states. The process involves naming a beneficiary on the registration form, who will then inherit the vehicle without probate court approval. This is a simple, effective, and free way to pass on vehicles, with the only drawback being that you cannot name an alternate beneficiary.

Proof of death and ownership are required to enact a TOD.

Can a minor be a beneficiary?

When planning for your passing, you can create an estate plan that allows you to name beneficiaries. While it is common to name loved ones, including children and grandchildren, as beneficiaries, there are some important considerations to make if they are minors.

It is possible to name a minor as your primary beneficiary, but there may be legal implications. If you name a minor as a beneficiary, they will have to settle the matter in probate court, where an adult custodian will be appointed to manage the funds until the minor becomes an adult. This process can be expensive and time-consuming, and it may result in less money being available to the minor.

To avoid these complications, you can consider the following alternatives:

• Establish a life insurance trust: By setting up a trust, you can specify how you want your death benefit to be distributed. For example, you can state that a portion of the funds be distributed for your child's college education when they turn 18, and then they can receive the remaining amount at a later date.
• Designate a trusted adult as the beneficiary: Instead of naming a minor as a beneficiary, you can name a trusted adult, such as a spouse, partner, or other potential caregiver, as the primary beneficiary. This gives them control over the funds, which they can use for the minor's benefit.
• Create a UGMA or UTMA account: These types of accounts allow you to leave specific assets, such as inheritance, life insurance money, or property, to minors. A trusted adult will be appointed to manage the assets until the minor reaches the age of termination, usually 18 or 21.

Viewing Fidelity Investments Beneficiaries

To view or update your beneficiaries for your Fidelity Investments, you can log in to your NetBenefits® account. From there, you can add, change, or delete beneficiaries by providing their name, date of birth, Social Security number, and relationship to you.

Frequently asked questions