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The Scottrade Beneficiary Form is an essential document for individuals looking to ensure a smooth transfer of assets held in a Scottrade OptionsFirst Brokerage Account upon their passing. This form is designed specifically for accounts registered as Individual, Tenants in Common, or Joint Tenants with Rights of Survivorship, providing clarity on how assets will be distributed. When completed correctly, the form allows account holders to designate specific beneficiaries who will receive the account’s assets, including interest and dividends, after the account holder's death. Importantly, this Agreement holds precedence over any conflicting provisions in a will or trust, emphasizing the need for thoughtful consideration and, ideally, consultation with estate planning professionals before proceeding. It outlines rules for making changes to beneficiary designations, ensuring that only named individuals will inherit the account's assets. The document also specifies that any required actions, such as notifying Scottrade of the account holder's death, ultimately fall to the designated beneficiaries. Furthermore, it clarifies that certain types of accounts, like community property accounts or IRAs, are not eligible for this Plan, making it necessary for users to thoroughly review their account type before initiating this process.

Scottrade Beneficiary Example

PO Box 31542 Saint Louis, MO 63131-0542

TRANSFER ON DEATH

BENEFICIARY PLAN AGREEMENT

In order to have a TOD Beneficiary Plan (Plan) you must open a Scottrade, Inc. (Scottrade) OptionsFirst Brokerage Account for an Individual,Tenants in Common or Joint Tenants with Rights of Survivorship (existing accounts are eligible). Please note, the TOD Beneficiary Plan covers the assets in your Brokerage Account upon your death (or the death of the final account holder). Those assets will be distributed to the beneficiary(ies) designated in this TOD Beneficiary Plan Agreement (Agreement) or in subsequent revisions submitted to Scottrade OptionsFirst. The Plan will take precedence over any estate plan established through a will or a trust, so you are advised to consult with your tax and estate planning professionals prior to signing this Agreement.

Designated Beneficiary Plan Terms and Conditions

Please Read This Section Carefully

Amendment of Account Agreement

This Agreement does not replace any of the terms and conditions of your Scottrade OptionsFirst Brokerage Account Agreement and any other agreements between you and Scottrade OptionsFirst that apply to this account, including margin agreements. However, if any of the terms and conditions of this TOD Agreement should conflict with those of any other agreements that apply to your Scottrade OptionsFirst Brokerage Account, as they are amended from time to time, this TOD Agreement will control. Unless otherwise defined, capitalized terms in this TOD Agreement have the same meanings as in the Brokerage Account Agreement.

Limited Availability

Only Scottrade OptionsFirst Brokerage Accounts with Individual, Tenants in Common or Joint Tenants with Rights of Survivorship registrations are eligible for this Plan. Certain accounts, including but not limited to community property accounts and IRA or other retirement accounts, are not eligible for the Plan.

Designation of Beneficiaries

You must designate your beneficiaries in writing on the form provided. Only beneficiaries identified by name will share in the account. The designation of named individuals who may be in the same class as other people (e.g.,children or grandchildren) will not automatically include the other member of the class before or after the date of this Agreement. If it cannot be determined that the beneficiary survived the account holder by 120 hours, the beneficiary will be deemed not to have survived that period.

Changes to Beneficiary Designations

You may change your named beneficiary(ies), change the percentages that you wish to distribute, or revoke your entire TOD Beneficiary Plan at any time in writing. A subsequent beneficiary designation automatically revokes a prior designation of beneficiaries when it becomes effective. In order to be effective, these changes must be made in writing and received by Scottrade OptionsFirst prior to the account holder’s death. Scottrade OptionsFirst will not honor any change of beneficiary made in a will or a trust, except when in receipt of a court order. An attorney-in-fact, conservator or other duly authorized and acting representative of the account holder may change the beneficiary designation only when ordered by the court. The court order must be delivered to Scottrade OptionsFirst.

Changes in the relationship between the account holder(s) and any designated beneficiary, including but not limited to subsequent marriage, dissolution of marriage, remarriage or adoption, will not automatically add or revoke designations of beneficiaries. For example, a former spouse would remain a beneficiary after the dissolution of a marriage unless his or her designation as a beneficiary was expressly revoked in writing and received by Scottrade OptionsFirst.

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Payment on Death

Your TOD Beneficiary Plan is not effective until the death of the account holder, tenant in common or for accounts held as Joint Tenants with Rights of Survivorship, until the death of the last surviving account holder. (The surviving account holder may change the beneficiary designation(s)). All assets in your TOD Beneficiary Plan must be held at Scottrade OptionsFirst. Transfers to a beneficiary(ies) include any interest, earnings, dividends, etc. associated with these account assets but not paid or credited before the death of the (last surviving) account holder. Scottrade OptionsFirst has no duty to withhold a transfer based on knowledge of an adverse claim unless written notice is given of that claim that affords Scottrade OptionsFirst reasonable opportunity to act. For a Tenant in Common, only your respective percentage ownership of the assets in the account will be distributed to your designated beneficiary(ies).

It is the responsibility of each beneficiary designated under the Plan to notify Scottrade OptionsFirst of the death of the account holder and to provide:

•A completed TOD Beneficiary Plan Distribution Form, provided by Scottrade OptionsFirst

•Certified copy of the death certificate

•Any additional information or documents as Scottrade OptionsFirst may deem necessary or appropriate in its sole discretion.

Suitability of the TOD Beneficiary Plan for You

You acknowledge that Scottrade OptionsFirst has not advised you about the suitability or validity of the Plan, and that Scottrade OptionsFirst recommends that you seek advice from your tax or estate planning professionals prior to signing this Agreement. You further acknowledge that this Plan does not constitute a trust, and that Scottrade OptionsFirst has no fiduciary duty as a trustee under this Agreement. You further acknowledge that it is Scottrade OptionsFirst policy not to give legal or tax advice or to advise you about specific suitability of any particular security, transaction or investment strategy.

Indemnity

In connection with Scottrade OptionsFirst actions in compliance with this Agreement, you, your estate or your successors-in-interest will indemnify and hold Scottrade OptionsFirst, its affiliates, directors, officers, employees and agents harmless from and against all claims, actions, costs and liabilities, including attorneys’ fees, arising out of or relating to:

•Actions taken in opening and maintaining your account or registering the securities in your account.

•Making distributions upon notice of the death of the (last surviving) account holder pursuant to the terms of this Agreement.

•This Plan being disallowed for any reason.

•Your failure to notify Scottrade OptionsFirst that your primary residence is no longer in a state in which this Plan is available.

•Any conflicting designations of the assets in your Account by will, revocable living trust or any other instrument.

•Any written change of designated beneficiaries that you may have made, but has not been received by Scottrade OptionsFirst.

Governing Law

This Agreement is governed by the laws of the state of Missouri and applicable federal law as applied to contracts entered into and performed within Missouri. Please note that page 11, item VII-B of the Scottrade OptionsFirst Brokerage Agreement refers to a pre- dispute arbitration provision.

PLEASE COMPLETE SECTIONS 1 THROUGH 5

Section 4 only required if specifying a contingent beneficiary

Section 6 must be completed by your spouse if you are currently married and

your spouse is not a joint account holder or sole beneficiary.

1.

TOD BENEFICIARY PLAN INFORMATION

 

 

Check one of the following options:

 

 

 

 

 

 

Registering for a TOD Beneficiary Plan

 

 

 

 

 

 

 

 

 

 

 

 

Do you currently have a Scottrade OptionsFirst Brokerage Account?

 

Yes

 

No

 

 

 

 

 

 

(If no, this form must accompany an Account Application)

 

 

 

 

Previously registered for a TOD Beneficiary Plan and submitting this form only to change beneficiary information.

Account Title

 

 

Scottrade OptionsFirst Brokerage Account Number

 

 

 

 

 

 

 

 

Address

 

 

Account Type

 

 

 

 

 

 

 

Individual

 

Tenants in Common

 

 

 

 

 

 

City

State

ZIP

 

 

Joint Tenants with Rights of Survivorship

 

 

 

 

 

 

 

 

 

 

 

 

 

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2.

PRIMARY BENEFICIARY DESIGNATION

At the death of the account holder or, in the case of joint tenants, at the death of the last surviving account holder, all of the assets in the account shall be transferred to the following beneficiaries who survive the (last surviving) account holder by 120 hours. At the death of a tenant in common, only that tenant’s percentage of assets shall be transferred to the following beneficiaries who survive the tenant by 120 hours. Unless different percentages are indicated below, the assets in the account shall be divided equally among the beneficiaries. If you designate, please make sure that the allocations add up to 100%. In the event that any securities in the account cannot, for any reason, be partitioned and transferred to the beneficiaries equally, Scottrade OptionsFirst shall, to the extent necessary, liquidate the securities and transfer the proceeds of that sale among the beneficiaries according to the percentages indicated.

Primary Beneficiary's Name

 

Date of Birth

Daytime Telephone

 

Designated Percentage

 

 

 

 

 

%

Address

 

 

Social Security or Tax ID Number

 

 

 

 

 

 

 

 

City

State

ZIP

Relationship to Account Holder

 

 

 

 

 

 

 

 

Primary Beneficiary's Name

 

Date of Birth

Daytime Telephone

 

Designated Percentage

 

 

 

 

 

%

Address

 

 

Social Security or Tax ID Number

 

 

 

 

 

 

 

 

City

State

ZIP

Relationship to Account Holder

 

 

 

 

 

 

 

 

Primary Beneficiary's Name

 

Date of Birth

Daytime Telephone

 

Designated Percentage

 

 

 

 

%

Address

 

 

Social Security or Tax ID Number

 

 

 

 

 

 

 

 

City

State

ZIP

Relationship to Account Holder

 

 

 

 

 

 

 

 

Primary Beneficiary's Name

 

Date of Birth

Daytime Telephone

Designated Percentage

 

 

 

 

%

Address

 

 

Social Security or Tax ID Number

 

 

 

 

 

 

 

 

City

State

ZIP

Relationship to Account Holder

 

 

 

 

 

 

 

 

If you would like to list additional beneficiaries, please attach the information on this form. Please make sure you clearly indicate primary

beneficiaries and contingent beneficiaries.

 

 

 

 

 

 

 

 

3.

DISPOSITION OF DECEASED PRIMARY BENEFICIARY ASSETS

 

 

If any beneficiary listed above is not living at the death of the account holder (or in the case of joint tenancy, the last surviving account holder) or does not survive the (last surviving) account holder or tenant in common by 120 hours, that beneficiary's share (please check one):

shall pass to the remaining primary beneficiary(ies) pro rata (proportionate to the designated percentages)

shall pass to my estate and go through probate

shall pass to the contingent beneficiaries as listed below (please complete section 4; assets will be divided equally unless different percentages are indicated)

4.

 

CONTINGENT BENEFICIARY DESIGNATION

 

 

 

 

 

 

 

 

 

Contingent Beneficiary's Name

 

 

Date of Birth

Daytime Telephone

 

Designated Percentage

 

 

 

 

 

%

Address

 

 

 

Social Security or Tax ID Number

Relationship to Account Holder

 

 

 

 

 

 

 

City

State

 

ZIP

Name of Primary Beneficiary Received From

 

 

 

 

 

 

 

Contingent Beneficiary's Name

 

 

Date of Birth

Daytime Telephone

 

Designated Percentage

 

 

 

 

 

 

%

 

 

 

 

 

 

 

Address

 

 

 

Social Security or Tax ID Number

 

Relationship to Account Holder

 

 

 

 

 

 

 

City

State

 

ZIP

Name of Primary Beneficiary Received From

 

 

 

 

 

 

 

Contingent Beneficiary's Name

 

 

Date of Birth

Daytime Telephone

 

Designated Percentage

 

 

 

 

 

 

%

 

 

 

 

 

 

 

Address

 

 

 

Social Security or Tax ID Number

 

Relationship to Account Holder

 

 

 

 

 

 

 

City

State

 

ZIP

Name of Primary Beneficiary Received From

 

 

 

 

 

 

 

Contingent Beneficiary's Name

 

 

Date of Birth

Daytime Telephone

 

Designated Percentage

 

 

 

 

 

 

%

 

 

 

 

 

 

 

Address

 

 

 

Social Security or Tax ID Number

 

Relationship to Account Holder

 

 

 

 

 

 

 

City

State

 

ZIP

Name of Primary Beneficiary Received From

 

 

 

 

 

 

 

Should all designated primary and contingent beneficiary(ies) dislcaim the assets, predecease the account holder or not survive the (last surviving) account holder by 120 hours, the assets will be distributed to the (last surviving) account holder's estate.

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5.

DIRECTIONS FOR DISTRIBUTIONS OF ASSETS TO MINOR BENEFICIARIES

Please check one:

A. None of my designated beneficiaries are minors

Please transfer any minor's assets to a custodial account at Scottrade OptionsFirst, managed by the custodian(s) designated below. In

B. each instance that the assets pass to the designated custodian for the designated minor, the assets shall be transferred under the Uniform Transfer to Minor's Act of the account holder's state of residency.

I did not check 5B above, and understand that a court-appointed guardian may be appointed to manage the minor's assets

C.under on-going court supervision; this is acceptable to me.

If you have checked 5B, please list the custodian for each minor beneficiary.

Name

As Custodian For (Name of Minor Beneficiary)

Name

As Custodian For (Name of Minor Beneficiary)

Name

As Custodian For (Name of Minor Beneficiary)

Name

As Custodian For (Name of Minor Beneficiary)

Are you married?

No

Yes

(if yes, please complete section 6)

6.

SPOUSAL CONSENT

 

This section must be completed by the spouse of either the account holder or tenant in common if the spouse is not named as the sole beneficiary of the account assets, or is not a joint tenant with rights of survivorship.

The undersigned hereby declares that he/she is the spouse of the account holder of the TOD Beneficiary Plan and consents to any designation of beneficiaries made whatsoever and whensoever by the account holder for this Agreement. Unless Scottrade OptionsFirst has received actual written notice of the revocation of the undersigned's written consent, the undersigned also agrees not to make any claim against the beneficiary(ies) or against Scottrade OptionsFirst as a result of any distribution to said beneficiary(ies) pursuant to this Agreement. This consent shall apply to all assets in the account upon the death of the account holder. The undersigned can revoke this consent by executing a letter of authorization (signed by the account holder and the undersigned), which must be received by Scottrade OptionsFirst prior to the account holder's death.

Signature of Spouse

Date

Signature of Witness* (Required)

Date

Name of Spouse

Name of Witness (Please Type of Print)

Address

Address

City/State

ZIP

City/State

ZIP

* This witness may not be the account holder, a Scottrade OptionsFirst employee or any designated beneficiary of these account assets.

SIGNATURES REQUIRED (For Joint Accounts, this Agreement must be signed by all Account Holders)

X

Print NameSignatureDate

X

Print Name

Signature

 

 

Date

 

 

 

 

 

 

 

 

 

 

FOR SCOTTRADE OPTIONSFIRST USE ONLY

 

 

 

 

 

 

 

 

 

 

 

 

A.E. Approval

Date

 

Branch Manager

Date

 

 

 

 

 

 

 

 

SF1026/9-12

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Get Scottrade Beneficiary PDF Form

Form Characteristics

Fact Name Fact Description
Eligibility Requirements Only Scottrade OptionsFirst Brokerage Accounts with registrations of Individual, Tenants in Common, or Joint Tenants with Rights of Survivorship can utilize the TOD Beneficiary Plan.
Survivorship Requirement Beneficiaries must survive the account holder by 120 hours to inherit assets from the account. If a beneficiary does not meet this condition, their share may pass to the estate or the remaining beneficiaries.
Priority of the Plan This TOD Beneficiary Plan takes precedence over any existing estate plan established by will or trust, emphasizing the importance of consultation with tax and estate planning professionals before signing.
Changes to Beneficiaries Account holders may amend beneficiary designations in writing at any time; however, changes must be received by Scottrade OptionsFirst prior to the account holder's death to take effect.
Ineligibility of Certain Accounts Community property accounts, IRAs, and other retirement accounts are not eligible for the TOD Beneficiary Plan, limiting its application to specific account types only.
Governing Law The Agreement is governed by Missouri state laws and applicable federal laws as applied to contracts entered into and performed within Missouri.

Guidelines on Utilizing Scottrade Beneficiary

Filling out the Scottrade Beneficiary form is a crucial step in ensuring your assets are managed according to your wishes upon your passing. It is important to follow the instructions carefully to designate beneficiaries accurately. Here’s how to proceed.

  1. Start by checking one of the two options in Section 1:
    • Registering for a TOD Beneficiary Plan if you have an account.
    • Submitting this form to change beneficiary information if you previously registered.
  2. In Section 1, provide the requested information including:
    • Account title
    • Brokerage account number
    • Address, including city, state, and ZIP
    • Account type (Individual, Joint Tenants, or Tenants in Common)
  3. Move to Section 2 to designate your primary beneficiaries. You need to fill in:
    • Their names
    • Date of birth
    • Daytime telephone number
    • Designated percentage of assets (total must equal 100%)
    • Address and Social Security or Tax ID number
    • Relationship to the account holder
  4. In Section 3, determine how the assets of any deceased primary beneficiary will be handled. Check one option:
    • Passed to remaining primary beneficiaries pro rata.
    • Passed to your estate and go through probate.
    • Passed to contingent beneficiaries listed in Section 4.
  5. If you have contingent beneficiaries, complete Section 4 with their details:
    • Names, date of birth, percentage of assets, contact information, and relationship to you.
  6. Move to Section 5 if any beneficiaries are minors. Check the appropriate box indicating:
    • No minor beneficiaries are present.
    • Assets should transfer to a custodial account managed by a designated custodian per your state law.
    • Alternatively, you’re fine with a court-appointed guardian managing assets under supervision.
  7. If you’re married, complete Section 6, providing your spouse’s consent, if required. Remember to include:
    • Signature of your spouse
    • Date
    • Name and address of the witness (who isn’t a beneficiary or Scottrade employee)
  8. Finally, sign and date the document in the designated areas for all account holders.

Once completed, submit this form to Scottrade to ensure it is processed correctly. It is advisable to keep a copy for your records. By doing this, you are taking an essential step to secure your legacy.

What You Should Know About This Form

What is the Scottrade Beneficiary form and why is it important?

The Scottrade Beneficiary form is a document that allows account holders to designate beneficiaries for their Scottrade OptionsFirst Brokerage Account. When the account holder passes away, the assets in the account are transferred to the designated beneficiaries, rather than going through the probate process. This form is crucial for ensuring your assets are distributed according to your wishes and can provide clarity and speed in transferring these assets to your loved ones after your death.

Who can be designated as a beneficiary on the Scottrade Beneficiary form?

Can I change my beneficiaries after I submit the form?

Yes, you can change your beneficiaries at any time. To do this, you must submit a new designation in writing that is received by Scottrade OptionsFirst before your death. Changes made in a will or trust will not replace the beneficiary designation on this form, unless a court order is provided. It's important to ensure that any changes reflect your current wishes and are clear to prevent any misunderstandings later on.

What happens to my account assets if all designated beneficiaries have passed away?

If all designated primary and contingent beneficiaries are deceased or do not survive the account holder by 120 hours, the assets will be transferred to the account holder's estate. This means that the remaining assets will go through the probate process, and the distribution will be managed according to the terms of the account holder's will, if one exists. Be mindful of this aspect when making your designations.

Common mistakes

Filling out the Scottrade Beneficiary form may seem straightforward, but many make mistakes that could affect their plans. Understanding these common errors can help ensure your assets go to the right people.

First, one mistake is failing to name beneficiaries clearly. The form requires that you specify the beneficiaries by their full names. Some may use initials or family titles like “my children.” However, this can lead to confusion and disputes later. Always write down complete names for clarity.

Another frequent issue arises when percentages of asset distributions are not clearly designated. If no percentages are specified, the assets will be divided equally among beneficiaries. Some people forget to ensure that the percentages add up to 100%. This can complicate the process and delay distributions. Double-check your math!

Skipping the section for contingent beneficiaries is also a common oversight. These are the backup beneficiaries who will inherit in case your primary beneficiaries do not survive you. We often think our primary choices are adequate, but unforeseen circumstances can change everything. Always consider naming contingents.

Additionally, many people forget to update their beneficiary designations after life-changing events. Marriages, divorces, or births can affect who should inherit your assets. The old designations remain valid unless you expressly revoke them in writing. Regularly review your designations to make sure they still reflect your wishes.

Lastly, not providing spousal consent when required can lead to significant problems. If you're married and your spouse is not a joint account holder or a named beneficiary, you must get their consent. Some individuals overlook this detail, risking potential disputes later on. Make sure to involve your spouse if necessary.

Documents used along the form

The Scottrade Beneficiary form is a crucial document for individuals looking to establish a Transfer on Death (TOD) Beneficiary Plan, ensuring seamless asset distribution after one's passing. Alongside this form, several other documents are often necessary to facilitate the complete understanding and implementation of the beneficiary designations. Below are common forms and documents that frequently accompany the Scottrade Beneficiary form.

  • Brokerage Account Agreement: This is the foundational document that outlines the relationship between the account holder and Scottrade. It contains essential terms and conditions that govern the brokerage account and must be understood in conjunction with the Beneficiary form.
  • TOD Beneficiary Plan Distribution Form: Upon the account holder's death, this form is required to initiate the process of distributing the assets to the named beneficiaries. It ensures that the distribution aligns with the account holder's wishes as expressed in the TOD Beneficiary Plan.
  • Death Certificate: A certified copy of the death certificate serves as official proof of the account holder's death. Scottrade will require this document before processing any beneficiary claims.
  • Power of Attorney (POA): If someone other than the account holder is handling the affairs, especially in the event of incapacity, a POA grants authority to that individual to manage decisions related to the account, including beneficiary changes.
  • Spousal Consent Form: If the account holder is married and their spouse isn’t designated as the sole beneficiary or a joint tenant, this form is necessary. It ensures that the spouse consents to the beneficiary designations made by the account holder.
  • Contingent Beneficiary Designation: This designation form is essential for specifying alternate beneficiaries, who will receive the assets if the primary beneficiaries are deceased at the time of the account holder's passing.
  • Custodial Agreement for Minors: When beneficiaries are minors, a custodial agreement designates an adult custodian to manage the assets until the children reach a certain age. This is crucial for safeguarding the interests of minor beneficiaries.

Understanding these additional documents can provide clarity and ensure that beneficiaries and account holders are well-prepared for what lies ahead. Consulting with tax and estate planning professionals is always advisable when dealing with these critical financial matters.

Similar forms

  • Last Will and Testament: This document specifies how a person’s assets should be distributed after their death. Like the Scottrade Beneficiary form, it requires clear designation of beneficiaries.
  • Revocable Living Trust: A trust that allows the creator to maintain control over assets during their lifetime, similar to how the Scottrade Beneficiary form allocates assets at death, bypassing probate.
  • Payable on Death (POD) Designation: This allows someone to specify a beneficiary for bank accounts upon the account holder's death, mirroring how investment accounts can have beneficiaries through the Scottrade form.
  • Transfer on Death Deed: This allows property to be transferred directly to a designated beneficiary outside of probate, much like the transfer of financial assets via the Scottrade Beneficiary form.
  • Health Care Proxy: Although primarily for health decisions, this document allows a person to designate a specific individual to make decisions on their behalf, resembling the beneficiary designation in the Scottrade form.
  • Durable Power of Attorney: This allows a person to appoint someone to make financial decisions on their behalf, similar to how beneficiaries handle the account post-death.
  • Insurance Policy Beneficiary Designation: Many insurance policies allow the policyholder to name beneficiaries, akin to the method used in the Scottrade form to designate account heirs.
  • Joint Tenancy with Rights of Survivorship: This property ownership option ensures that when one owner passes away, the remaining owner(s) automatically inherit their share, similar to the Scottrade process.
  • Retirement Account Beneficiary Designation: Specific to retirement accounts, this form allows account holders to name beneficiaries who will receive the assets upon their death, just like the Scottrade Beneficiary form.
  • Special Needs Trust: This trust allows beneficiaries with special needs to receive assets while preserving their eligibility for public assistance, applying similar principles of asset distribution as the Scottrade form.

Dos and Don'ts

When filling out the Scottrade Beneficiary form, it’s essential to follow some best practices to ensure a smooth process. Here’s a list of things to do and avoid:

  • Do write clearly to avoid any confusion.
  • Do designate beneficiaries specifically by their full names.
  • Do confirm that all beneficiaries are aware of their designation.
  • Do keep copies of all submitted forms for your records.
  • Don't leave any sections of the form blank if they are applicable.
  • Don't use general terms like "my children" instead of naming each child individually.
  • Don't assume that changes made in a will will automatically update your beneficiary designations.

Misconceptions

Here are seven common misconceptions about the Scottrade Beneficiary form along with clarifications for each:

  • The form automatically designates beneficiaries upon account holder's death. The TOD Beneficiary Plan is not effective until the account holder's death or the death of the last surviving account holder. Without the proper beneficiary designation in place before this event, distribution of assets may not occur as intended.
  • Any form of ownership is eligible for the TOD Beneficiary Plan. Only specific account types, such as Scottrade OptionsFirst Brokerage Accounts with Individual, Tenants in Common, or Joint Tenants with Rights of Survivorship registrations qualify for this Plan. Other types of accounts, including retirement accounts, are excluded.
  • Beneficiaries must be blood relatives. Rather than restricting beneficiaries to familial relationships, the account holder may designate any individuals, including friends or organizations, as beneficiaries. The key is to identify them by name in the form.
  • An estate plan takes precedence over the TOD Beneficiary designations. In fact, the TOD Beneficiary Plan takes precedence over wills or trusts for the assets held in the brokerage account. It's crucial to consult with tax and estate planning professionals for advice about conflicting designations.
  • If my marital status changes, my beneficiaries automatically change as well. Changes in marital status, such as divorce or remarriage, do not automatically update beneficiary designations. If a beneficiary is designated, they remain as such unless you expressly revoke their status in writing.
  • I can modify my beneficiary designation through a will or trust. Changes to beneficiaries must be made in writing on the designated form and submitted to Scottrade OptionsFirst. A will or trust cannot officially change beneficiary designations unless supported by a court order.
  • The transfer process is automatic and requires no action from beneficiaries. It is the responsibility of each beneficiary to notify Scottrade OptionsFirst of the account holder's death. They must provide certain documentation, including a death certificate and a completed distribution form, to facilitate the transfer of assets.

Understanding these misconceptions can help manage expectations and ensure that beneficiaries receive their intended shares without complications. Always seek professional advice for guidance tailored to individual circumstances.

Key takeaways

Here are key points regarding the Scottrade Beneficiary form:

  • This form enables individuals to designate beneficiaries for their Scottrade brokerage accounts.
  • It is important that beneficiaries are named specifically; general terms like "children" do not suffice.
  • Beneficiaries must survive the account holder by 120 hours to inherit assets; otherwise, those assets will be reallocated.
  • Account holders can change their beneficiary designations at any time by submitting a written request.
  • The beneficiary designations take precedence over wills or trusts, making advance planning essential.
  • The form should be completed carefully; certain sections are required based on marital status and the presence of minor beneficiaries.
  • Account holders must notify Scottrade of any changes in their residential state if it affects the Plan's validity.

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