How to name beneficiaries and fund a trust at Continental Stock Transfer

Continental accepts TOD registrations in states recognizing the registration, except for certain issues where it acts only as co-transfer agent.¹

A TOD designation is added by re-registering the shares, not by filing a separate beneficiary card.²

Shares held individually by a natural person can carry a TOD registration.²

Shares held as Joint Tenants (JT TEN) or Tenants by the Entireties (TEN ENT), with rights of survivorship, can carry a TOD registration.²

Tenants in Common registrations cannot carry a TOD designation, because they have no right of survivorship.¹

Community Property joint registrations cannot carry a TOD designation, because they have no right of survivorship.¹

A trust cannot be the owner of a TOD registration, because TOD owners must be natural persons. Retitling to a trust and a TOD registration are alternatives, not layers.¹

Continental does not permit TOD registrations by non-natural persons such as a corporation or partnership.¹

The beneficiary may be an individual.²

The beneficiary, unlike the owner, may be an entity such as a corporation or partnership.¹

A charity may be named as the beneficiary.¹

A trust may be named as the beneficiary.¹

A Uniform Transfers to Minors Act (UTMA) custodial account may be named as the beneficiary.¹

Only one beneficiary may be designated per TOD registration. A second beneficiary requires a second registration.¹

The signature must carry a medallion signature guarantee from an Eligible Guarantor Institution; a notary public guarantee is not accepted.¹

An Eligible Guarantor Institution is a commercial bank, broker-dealer, credit union or savings association in a Medallion Program approved by the Securities Transfer Association.²

For directly registered sharess. Completed by the shareholder. Available to download.²

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Until the owner's death the beneficiary has no rights to the shares, so the owner can sell or transfer them without the beneficiary's consent.¹

ContinentaLink shows holdings, statements and dividend options, but a registration change requires the mailed Stock Power.¹

Whether the issuer participates in the Direct Registration System determines whether the trust's shares can be issued as a DRS statement or must be certificated.¹

One Stock Power covers only one type of security, so common stock, preferred stock, warrants, units and notes each need their own.²

For directly registered sharess. Completed by every trustee. Available to download.²

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If the trust has co-trustees, all of their signatures are required and all must be medallion-guaranteed.²

Continental asks for a Substitute IRS Form W-9 in the trust's taxpayer identification number; without a certified TIN it must apply backup withholding to dividends and sale proceeds.²

A trust-registered position transfers on the trustee's certification rather than through the court-appointment package Continental otherwise requires.¹

If the package contains certificates, Continental suggests insuring it for 3 percent of the current share value, because replacing certificates lost in the mail can require a surety bond of 3 percent (5 percent for non-US applicants).¹