What to do when an Axos account holder dies

Completed by each beneficiary of an Axos Invest IRA or qualified plan. Available to download.^{1, 2}

Completed by the trustee, where a trust is the beneficiary. Available to download.²

Completed by a beneficiary opening an inherited IRA to receive the assets. Available to download.²

Funds are payable only after the death of all owners. The beneficiary provides a certified death certificate and government-issued ID.³

A predeceased beneficiary's share goes to the surviving beneficiaries, not to that beneficiary's own heirs. Payment under the designation discharges Axos unless it was served with a court order or other legal process before paying.⁴

The TOD Agreement says transfer "will begin as soon as practicable after the Date of Death."⁵

Each beneficiary must come forward. Axos Advisor Services has no obligation to locate a beneficiary, spouse, heir or personal representative, to tell anyone of a transfer, or to verify what a claimant submits.³

Axos Advisor Services may require a beneficiary to open an account, or identify an existing one, to receive the assets. It may require a certification of beneficiary identity from the estate's personal representative.³

Each Beneficiary Distribution Request carries one set of instructions and cannot move assets to another custodian; use the receiving custodian's transfer form. A direct rollover to an employer plan is available to spouse beneficiaries only.¹

The form always needs a client signature for a rollover, a check to an address other than the address of record, a payment to someone other than the account owner, and distributions over $250,000 by ACH or $1,000,000 by internal transfer, wire or check to the address of record.¹

Axos Invest brokerage TOD claims³

The agreement asks you to notify Axos promptly when any owner or authorized signer dies. Until it receives notice, Axos may act as if all owners are alive and competent.⁴

Axos may act on instructions given before the death unless it receives written notice of the death before honoring them.⁴

On notice of a death, Axos may place a hold on the account, refuse deposits and withdrawals, and hold the funds "until we know the identity of the successor".⁴

If a salary, pension, Social Security or Supplemental Security Income payment to the deceased owner is credited after the date of death, Axos may debit the account and return it to the payer.⁴

An agent's authority ends at the principal's death, and the agreement requires the agent to notify Axos in writing.⁴

Axos Advisor Services will not transfer anything while a dispute over entitlement is unresolved, and may hold assets in TOD registry form pending any legal or tax matter.³

Axos Advisor Services may require an indemnification agreement from a beneficiary.³

TOD transfers are reduced by any margin or other debt balance owed.³

A $225 TOD Distribution fee applies to brokerage TOD transfers.⁶

Termination, check, overnight and wire fees on a retirement claim are deducted from the account balance.¹

The TOD Agreement is governed by Nebraska law. It warns of an "ineffectual transfer": a beneficiary who receives assets may have to account to the personal representative where the estate cannot pay claims, allowances, taxes and administration expenses.⁵

Mailed distribution checks take about 10 business days to arrive, and in-kind security certificates four to six weeks.³