How to name beneficiaries and fund a trust at Edelman Financial

EFE does not hold the designation of record. The custodian (Charles Schwab, Fidelity, Axos Advisor Services or Matrix Trust Company) does, and every beneficiary or TOD form is the custodian's.¹

TOD registration on a taxable brokerage account is a custodian registration, not an EFE service.¹

Each account is designated separately at the custodian: an IRA designation does not carry over to a taxable account.¹

A 401(k), 403(b) or 457(b) managed account is held by the employer plan's recordkeeper, which keeps the designation of record. EFE cannot change a plan beneficiary.¹

A trust can be named as the beneficiary, using the trust's exact name and date.¹

Primary and contingent beneficiaries are named with percentage allocations.¹

Completed by the account owner. Sent by the institution on request.²

A designation discussed with a planner but never filed with the custodian is not in effect. The custodian or recordkeeper statement is the record that controls.¹

EFE does not custody assets, so it cannot retitle anything itself. The retitling is a custodian transaction that the EFE planner initiates and tracks.¹

Retitling is done custodian by custodian, so a household with Schwab and Fidelity accounts has two packets. EFE does not choose which custodian holds the account.¹

EFE's Q&A states: "Simply listing assets in your trust agreement does not make them legally part of the trust ... If assets aren't titled in the name of the revocable trust, a probate proceeding will likely be necessary."³

EFE's Form ADV Part 2A lists "trusts, estates" among the client types it advises, so a trustee-owned account is an ordinary registration for the firm.⁴

A workplace managed account cannot be moved to a trust while it remains in the employer plan.¹

Completed by the trustees. Sent by the institution on request.¹

Completed by the trustees. Sent by the institution on request.¹

The custodian opens a trust-registered account and moves the positions in kind.¹

EFE's advisory agreement and discretionary authority are re-papered to the trust-titled account and name the trustees as the client, so management continues without a liquidation.¹

Custodian of EFE wealth and retail accounts; beneficiary updates and TOD registration¹

Custodian of EFE wealth and retail accounts; beneficiary updates¹

Advisor-facing custodian of EFE accounts; the EFE planner submits its beneficiary form¹

Custodian for certain EFE clients not enrolled in the Wrap Fee Program¹

401(k), 403(b) and 457(b) managed accounts and their beneficiary designations¹