How to name beneficiaries and fund a trust at Capital Group

Each IRA must have its own beneficiary designation. A SIMPLE IRA participant holding both a pre-tax and a Roth SIMPLE IRA in the same plan has the designation applied to both accounts.¹

The standard IRA form cannot name successor beneficiaries on an already-inherited IRA; the separate Inherited IRA Beneficiary Change is used. Capital Group's IRA beneficiary page says to contact it about naming or changing beneficiaries on an inherited IRA.^{2, 3}

TOD registration is available only on accounts registered as Individual or Joint Tenants With Rights of Survivorship.⁴

Capital Group warns that some states do not allow TOD registration on joint accounts.⁴

On a CollegeAmerica 529 plan, the CollegeAmerica Account Change Request names a successor owner rather than a death beneficiary.²

A trust can be named as beneficiary on IRA and TOD accounts, using the full legal name of the trust.^{1, 4}

The IRA Beneficiary Change form states "We cannot accept beneficiary designations that reference 'will' or 'trust under will'," which rules out a trust created by a will.¹

Allocations must be in whole percentages (33%, not 33.3%). Primary percentages must total 100% and contingent percentages must total 100%.¹

If the stated percentages do not add to 100, each share is prorated. If percentages are left blank, the shares are divided equally.¹

A married IRA owner who names a primary beneficiary other than the spouse may need the spouse to sign the consent section. Where spousal consent is not required, IRA beneficiaries can be updated online.¹

All registered owners must sign the TOD form, and a spouse may need to complete the consent section.⁴

Capital Group forms cannot be signed using Adobe Acrobat Reader's "fill and sign" feature. A handwritten or compliant electronic signature is required.^{1, 4}

Neither the IRA Beneficiary Change nor the TOD Registration Request requires a Medallion Signature Guarantee.^{1, 4}

Forms requiring a signature guarantee, original certification or notary must be mailed and cannot be submitted electronically.⁵

For IRAs. Completed by the IRA owner. Available to download.¹

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For investment accounts. Completed by all registered owners. Available to download.⁴

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For IRAs. Available to download.²

For 529 plans. Available to download.²

Both forms state that by naming a spouse you elect to treat that spouse as a beneficiary "while we are married." Upon divorce, annulment or other lawful dissolution of the marriage, the designation is null and void, effective immediately.^{1, 4}

The designation stays void unless, after the dissolution, you re-name the former spouse as a non-spouse beneficiary. Capital Group does not wait for a court order or a new form.^{1, 4}

Every beneficiary form replaces all existing primary and contingent beneficiaries on the account. Partial updates are not permitted, so everyone is re-listed even when one person changes.^{6, 2}

An existing TOD designation can also be changed by a letter of instruction signed by the account owners, as an alternative to the TOD form.⁴

A TOD beneficiary has no ownership or account access during the lifetime of the account owners.⁴

If a named TOD or IRA beneficiary is a minor, American Funds Service Company may take instruction to transfer the proceeds to a custodian under the applicable state's Uniform Transfers to Minors Act.^{4, 1}

If no IRA beneficiary is named, or all named beneficiaries disclaim or predecease, the Custodial Agreement order applies: the owner's spouse; then the owner's children equally, a deceased child's share going to that child's children or, if none, to the surviving children; then the owner's estate.⁷

If the owner's state has not adopted the Uniform TOD Security Registration Act, Capital Group administers the TOD account under the California TOD Act.⁴

Louisiana residents completing the TOD form must have the account owner's signature notarized or have two witnesses who are not named beneficiaries sign. A TOD form that includes a notary signature must be mailed and cannot be uploaded.⁴

Trust accounts at Capital Group hold American Funds mutual funds and ETFs.⁵

Retirement accounts (IRAs, SIMPLE IRAs, SEP IRAs) cannot be retitled to a trust, but a trust can be named as beneficiary.⁵

CollegeAmerica 529 and ABLEAmerica accounts cannot be retitled to a trust.⁵

Sent by the institution on request.⁵

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Sent by the institution on request.⁵

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Phone requests require only one trustee's authorization. Written financial or account maintenance requests may require all trustees to sign, depending on the option selected on the application.⁵

Depending on the trust agreement, trustees may need to act jointly or independently for financial transactions.⁵