Concerning designating a beneficiary on a non-IRA brokerage account.......
Larry, you were kind enough to answer a question for me recently concerning beneficiaries on IRA accounts. I don't know what your professional background is, but it obvious that you are very knowledgeable on such subjects. I have another question now, and I am posting it publicly because I think it would be of general interest.
In searching for beneficiary forms on Fidelity, I now find that there are also such forms for non-Ira accounts. That is, ordinary brokerage accounts. According to the instructions for such forms, they take precedence over other estate devices, including wills. As I read it, it is possible to have your brokerage account pass on to your beneficiary without going through the ordinary estate process. Fidelity indicates that the beneficiary must have, or open, a brokerage account of their own, into which the assets of your account are transferred upon your death. If this is correct, I never knew it before...and I would imagine many others may not know it, either. It seems to me that this would be a very important planning tool to make sure that your investment assets pass on to your survivors in the most efficient way.
What I am asking you Larry, is ... am I understanding this correctly? I don't mean to bother you with a lot of free-loading questions to take advantage of your knowledge, but perhaps you can pretty much answer this with just a yes or no. And, as I say, I think there certainly must be others who would be interested in this.
Thanks in advance.
J.C. |
