How to name beneficiaries and fund a trust at Computershare

A TOD registration is available only where the owner is a natural person, or natural persons holding as joint tenants with right of survivorship or tenants by the entireties, domiciled in the United States. Tenants in common, non-natural persons and non-US persons are not permitted.¹

A trust or other entity cannot be the TOD owner. Certificated shares must be deposited and cancelled into book-entry form before a TOD account can exist.¹

An individual can be named as a TOD beneficiary.¹

A trust can be named as a TOD beneficiary.¹

A corporation can be named as a TOD beneficiary.¹

A guardianship can be named as a TOD beneficiary.¹

Single or multiple beneficiaries can be named with percentage allocations, in whole numbers only, and the primary total and the contingent total must each equal 100%. If no percentages are assigned, multiple beneficiaries own equal percentages (Rule 5).¹

A paper designation needs a medallion signature guarantee on each owner signature. An online instruction through Investor Center does not.²

The paper designation form needs a medallion signature guarantee, and a notary seal is not accepted in its place.³

For directly registered sharess. Available to download.²

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A TOD registration may not be changed or revoked by will, codicil, telephone conversation or any other written or oral communication (Rule 6). It is changed only by a new medallion-guaranteed form or an online instruction.¹

A new designation supersedes every prior designation on the account.¹

Until the owner dies, the TOD beneficiaries have no rights in the security (Rule 6). If every beneficiary is removed, Computershare may drop the TOD designation from the account.¹

If no designated beneficiary survives the owner, the shares belong to the owner's estate, and the transfer needs the executor or administrator to sign with a medallion signature guarantee (Rule 9).¹

A UTMA custodian may be a beneficiary, but a UGMA custodian may not (Rule 4).¹

The registration reads "TOD ON FILE SUBJECT TO CPU RULES" rather than naming the beneficiaries. Computershare sends a written statement of each beneficiary, their percentage and whether primary or contingent, every year and whenever a beneficiary is added, removed or modified.¹

An online designation takes effect through Investor Center. A mailed form is processed after receipt.^{4, 2}

For directly registered sharess. Available to download.⁵

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Any change in registration, including removing a name, results in a new account.⁵

A statement is mailed to the new holder when the transfer is complete.⁵

Account features such as dividend reinvestment or direct deposit do not carry over to the new account. The trustee re-selects them in Investor Center afterwards.⁵

For transfers valued at less than US$14 million, Computershare does not require copies of the legal documents. Above that threshold the transferor contacts Computershare for further requirements.⁵

Computershare charges no fee to transfer stock, though the guarantor institution may charge for the medallion stamp.⁵