How to name beneficiaries and fund a trust at Edward Jones

The Transfer on Death Agreement is available only to account owners who are citizens or residents of the United States, and only holdings in Edward Jones's nominee name are eligible.¹

The Agreement excludes precious metals, commodities, mutual funds not held at Edward Jones, and most limited partnership interests not in its nominee name; these pass another way.¹

Variable and fixed annuities are excluded from the Transfer on Death Agreement and pass another way.¹

Custom-drafted trust beneficiary language is accepted for traditional, Roth, SEP and SIMPLE IRAs and owner-only 401(k) plans.²

Custom language must give clear instructions and cannot require Edward Jones to make discretionary decisions, determine the members of a class of beneficiaries, or perform formula calculations.²

On a Transfer on Death Agreement each beneficiary must be a citizen of the United States or Canada, or a lawful U.S. resident.¹

A custom IRA designation can name a non-U.S. beneficiary. It must state their citizenship and residency, and that beneficiary supplies a home-country tax ID on Form W-8BEN when claiming.²

A living trust can be named. It is identified by its title and the original date the trust agreement was executed, not the date of the most recent amendment or restatement.²

A charity can be named. The designation should not restrict how the charity uses the funds; if the client insists, it must also state that Edward Jones is not responsible for how the organization uses them.²

The TOD Agreement puts no limit on the number of beneficiaries or contingent beneficiaries. Percentages must total 100 percent, may be carried to two decimal places, and apply per asset, not to the account as a lump sum.¹

Unallocated assets are transferred pro rata to the beneficiaries otherwise entitled. "Lineal Descendants per Stirpes is not a valid method of designating Beneficiaries under this Agreement."¹

Per stirpes is accepted on a custom-drafted IRA or owner-only 401(k) designation when the ancestor's name, Social Security number and date of birth are given.²

Where the owner or spouse lives or has lived in a community property jurisdiction during the marriage and the spouse is not the sole primary beneficiary, the Spousal Consent Form is required; the TOD features are void without it.^{1, 3}

Consent remains required when the owner marries or moves to a community property jurisdiction after signing. The Agreement names Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, Wisconsin, Alaska (by election), Puerto Rico and Guam.¹

The witness must be a disinterested party not named in the TOD Agreement and must witness the spouse signing. A branch office administrator can serve, and the form requires no notarization.²

Spousal consent is required for an owner-only 401(k) when the spouse is not the sole primary beneficiary.²

For investment accounts. Completed by the account owner, with the advisor. Available to download.¹

For investment accounts. Completed by the account owner, with the advisor. Sent by the institution on request.¹

For investment accounts. Completed by the account owner, with the advisor. Sent by the institution on request.¹

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

Completed by the spouse, before a witness. Available to download.³

Completed by the account owner. Sent by the institution on request.¹

Completed by the consenting spouse. Sent by the institution on request.¹

Named beneficiaries control the account at death regardless of what the will says.²

A beneficiary who does not survive the account owner by 120 hours is treated as not having survived.¹

A beneficiary who does not claim within one year of the owner's date of death is also treated as not having survived; that share moves to the contingent beneficiaries or, failing them, to the probate estate.¹

A dissolution of marriage automatically revokes the designation of a former spouse under the TOD Agreement. If the owner dies before updating the form, the former spouse is treated as having predeceased.¹

On a joint account with right of survivorship no beneficiary takes anything until the last surviving owner dies. The TOD follows the account when survivors remove the decedent's name or move the assets into a new account in their own names.¹

The Agreement is effective only once the beneficiary form is received and accepted at the St. Louis headquarters, but it dates back to the day the owner signed it, so a death between mailing and acceptance does not invalidate it.¹

The client signature must be dated within 60 days of receipt at the home office, or the designation is rejected and has to be re-signed.²

To change or cancel, the owner files a new Agreement or a Letter of Revocation Form. A spouse who has given consent revokes it with a Revocation of Spousal Consent Form delivered before the owner's death.¹

A $300 fee is charged at the beneficiary's claim, not at setup, when the Request for Execution of Non-probate Transfer Form is filed.¹

The Transfer on Death Agreement states it "shall not be valid and shall be of no effect in the State of Louisiana," and a TOD signed elsewhere becomes void the moment the account owner becomes a Louisiana resident.¹

IRAs and Roth IRAs are not retitled into a trust.⁴

The owner-only 401(k) is not retitled into a trust.⁴

Completed by the trustee, with the advisor. Sent by the institution on request.⁴

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A brokerage or advisory account is retitled by opening a new account registration in the name of the trust and moving the assets in kind, so positions and cost basis carry over.⁴

Edward Jones Trust Company commences service as trustee only upon formal acceptance of its appointment, after it reviews the trust documents and assets, so a successor-trustee appointment is not self-executing at death.⁴

Edward Jones Trust Company assumes no fiduciary responsibility for assets added to a trust unless it has received and formally accepted them.⁴

Managing agent, trustee or co-trustee, trust and estate settlement, and successor trustee services⁴