How to name beneficiaries and fund a trust at Dodge & Cox

TOD registration is available only for individual and joint-tenant (with rights of survivorship) taxable accounts. It "is not available for tenants in common, community property registrations, or non-natural persons (e.g., corporations, trusts, and associations)."¹

TOD registration is "also not available to IRA(s)." An IRA takes its beneficiaries on the IRA Beneficiary Designation Form, and IRA beneficiaries can be updated online.^{1, 2}

A trust can be named as IRA beneficiary.²

A trust cannot be a TOD beneficiary on a taxable account.¹

A minor may be a TOD beneficiary under the Uniform Transfers to Minors Act, but not under the Uniform Gifts to Minors Act, "as a gift under UGMA requires a living donor."¹

Primary and alternate beneficiaries can be named, each with an allocation percentage. The percentages total 100%.^{1, 2}

Only "simple beneficiary designations" are accepted for a TOD registration.¹

A TOD designation must be signed by all account owners. A change or revocation likewise requires endorsement by all account owners.¹

A married IRA owner naming someone other than a spouse completes the spousal consent section (Part 4) of the IRA Beneficiary Designation Form, acknowledging the possible consequences of giving up a community or marital property interest.²

For investment accounts. Completed by all account owners. Available to download.¹

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For IRAs. Available to download.²

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A will cannot override a Dodge & Cox TOD designation: "The beneficiary designation may not be revoked by the account owner(s) by the provisions of a Will or a codicil to a Will."¹

The transfer agent "is not required to honor any change of beneficiary made in a will or trust, except as required by court order delivered to the Transfer Agent."¹

If an owner names a spouse and they later divorce, "the fact of the divorce will not automatically revoke the beneficiary designation." The owner must notify the transfer agent in writing.¹

Per capita is the default on both the TOD form and the IRA Beneficiary Designation Form: "If no selection is made, the per capita method will be utilized." Per stirpes must be elected affirmatively.^{1, 2}

On an IRA, if there are no surviving alternate beneficiaries and no per stirpes designation at the owner's death, the Funds transfer ownership to the owner's estate, unless the owner's state law requires otherwise.²

TOD beneficiaries "have no rights in the account until the death of the account owner or last surviving account owner."¹

TOD registrations "may not be made irrevocable."¹

A beneficiary update replaces all existing beneficiaries on the account.³

Trust accounts at Dodge & Cox hold Dodge & Cox mutual funds only.⁴

Retirement accounts (Traditional, Roth, Rollover, SEP, Spousal, Custodial and Inherited IRAs) cannot be retitled to a trust.⁵

Entity accounts (corporations, LLCs, partnerships, statutory trusts) require the Account Application for Corporations and Other Entities and must be submitted by mail.⁴

For trust accounts. Available to download.⁴

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Available to download.⁵

For business accounts. Sent by the institution on request.⁴

The online account-opening tool supports a Personal Trust registration. Retitling an existing account to a trust is a paper process on the Change of Ownership Form.^{6, 5}

On the death of a trustee, the surviving trustee(s) either obtain a Medallion Signature Guarantee in Part 4 of the Change of Ownership Form or provide a certified death certificate.⁵

If the trustee or TIN is changing, a Medallion Signature Guarantee letter of instructions plus a completed Account Application is required.⁵

Custodian of Dodge & Cox IRAs³