What to do when an Edward Jones account holder dies

Completed by a beneficiary of a Transfer on Death account, a beneficiary's fiduciary, or the personal representative of the owner's probate estate. Sent by the institution on request.¹

In a joint account with rights of survivorship, all assets in the account on the date of an owner's death vest in and belong to the surviving owner, unless otherwise required by law.²

Where a survivorship joint account carries a TOD, no beneficiary is entitled to the assets until the last surviving owner dies or disclaims. The TOD stays in effect after the deceased owner's name is removed, unless the survivors file a Letter of Revocation Form.¹

A TOD beneficiary who does not survive the owner by 120 hours, or does not claim within one year of the death, is treated as not having survived. That share passes to the contingent beneficiaries; if no beneficiary survives, the owner's probate estate takes the account.¹

The TOD is void if, at the owner's death, there is a surviving spouse, the couple lived in a community property jurisdiction, and the spouse is not the sole joint owner or sole primary beneficiary, unless Edward Jones holds an unrevoked Spousal Consent Form.¹

Only assets held in Edward Jones's name as nominee pass under the TOD. Precious metals, commodities, variable and fixed annuities, mutual funds not held at Edward Jones, and limited partnership interests not held in its nominee name (other than exchange-traded partnerships) do not.¹

Under a custom-drafted beneficiary designation, Edward Jones will not determine who belongs to a class of beneficiaries (such as descendants, per stirpes), perform formula calculations or make any other discretionary decision after the client's death.³

The TOD Agreement "shall not be valid and shall be of no effect in the State of Louisiana", and it becomes void when an owner who set it up elsewhere becomes a Louisiana resident.¹

The Estate Valuation Service gives a ready-to-file date-of-death valuation report on firm-held assets, in a format consistent with Schedule A of IRS Form 706. It is ordered through the branch office managing the account.⁴

The Account Agreement requires the deceased owner's successors to give Edward Jones immediate written notice of the death. Until it is notified in writing, Edward Jones may continue to operate the account as though the owner were alive.²

The estate of each deceased owner and each surviving owner are jointly and severally liable for debt or loss from transactions initiated before Edward Jones receives the written notice, from liquidating the account, and for taxes or expenses that become a lien on it because of the death.²

Before or after it receives written notice of the death, Edward Jones may initiate proceedings, require documents, retain assets and restrict transactions in the account.²

On the owner's death, Edward Jones may liquidate, restrict or terminate services to the account without prior notice to or demand upon the successors.²

TOD assets are transferred in kind where possible to an Edward Jones account owned by the beneficiary. Edward Jones may sell assets that cannot be divided into negotiable amounts and may divide fractional shares as it sees fit.¹

Edward Jones is not liable to a TOD beneficiary for a loss or change in value between the death and the transfer. It decides how to handle payments or dividends received into the account after the death.¹

The TOD Agreement charges $300, due when a Request for Execution of Non-probate Transfer Form is filed. Edward Jones may deduct it from the account before making distributions.¹

A minor TOD beneficiary named without a custodian may be paid to a custodian under "the Missouri Transfers to Minors Law or under the Uniform Transfer to Minors Act or similar statute of any state", or a court-appointed conservator or guardian. If none is available within 90 days, the minor may be paid directly.¹

A TOD beneficiary who is an incapacitated adult may be paid to an agent under a durable power of attorney or a court-appointed conservator or guardian. If none is available within 90 days of the death, Edward Jones may transfer to the beneficiary directly.¹

If Edward Jones cannot determine who is entitled to a TOD transfer, a dispute arises over it, or a creditor claims the assets, Edward Jones may require everyone involved to enter an adjudication, through arbitration or another manner it accepts.¹

Instead of an adjudication, Edward Jones may require TOD beneficiaries to provide an indemnity bond before it makes any transfer.¹

The form of ownership and survivorship on the Account Authorization and Agreement Form governs the account, and "may result in a different distribution of the assets in the account upon the death of the owners than would be prescribed by the law of intestacy".²

A TOD does not change a beneficiary's responsibility for the owner's debts or taxes. Edward Jones is not responsible for paying the owner's debts or any taxes owed by the owner, the estate or a beneficiary.¹

The Account Agreement binds the owner's heirs, beneficiaries, personal representatives, executors, administrators, trustees and other successors on every matter involving the account, including its arbitration terms.²