We explain the process for claiming ownership of an account after the owner has passed away.
TABLE OF CONTENTS
- Who is the named beneficiary on my loved one's account?
- I am the named beneficiary—how do I move forward?
- I have a joint account and the joint account holder has passed away?
- Are there no named beneficiaries on your spouse’s IRA?
- Are there no designated beneficiaries on your loved one's taxable account?
- What is the timeline for the account transfer process?
Who is the named beneficiary on my loved one's account?
If you’re not sure whether you are the named beneficiary of an account—that’s okay. Contact us and we will do our best to help you understand whether there were beneficiaries designated for the account. If not, we may need court-appointed documentation to show that you are the correct person to transfer the estate to.
I am the named beneficiary—how do I move forward?
If you are the named beneficiary, we require the following information and documentation in order to process an account transfer:
- Your contact information
- A legible, color copy of your driver’s license
- A completed beneficiary claim form-- please contact us to request this form
- Death certificate
To claim the assets, you will need to open a Betterment account under your name. When setting up a Betterment account, there is no obligation to fund the account or keep it open once the transfer process is complete. This process gives you access to our platform and allows us to move the assets from the decedent's account into yours.
I have a joint account and the joint account holder has passed away?
As the secondary account holder, you are now the default beneficiary. To transfer the assets from your joint account to an individual account in your name, we require the following information and documentation:
- Your contact information
- A legible, color copy of your driver's license
- A completed beneficiary claim form
- Death Certificate
Please contact us for further information on how to receive the beneficiary claim form here.
Are there no named beneficiaries on your spouse’s IRA?
If there are no named beneficiaries on your spouse’s IRA, we will treat the account as if you were designated as the beneficiary. As a spouse, you are considered to be a default beneficiary.
We require the following information and documentation in order for you to move forward as the default beneficiary of your spouse’s Betterment IRA.
- Your contact information
- A legible, color copy of your driver’s license
- A completed beneficiary claim form-- please contact us to request this form.
- Death Certificate
To claim the assets, you will need to open a Betterment account under your name. When setting up a Betterment account, there is no obligation to fund the account or keep it open once the transfer process is complete. This process gives you access to our platform and allows us to move the assets from the decedent's account into yours.
Are there no designated beneficiaries on your loved one's taxable account?
If there are no named beneficiaries on a taxable account, we will need court-issued documentation that states the appropriate person to disburse the estate to.
In some cases, this person is the executor of the will or administrator of the estate, and their role is authorized by the probate court in that jurisdiction—often via a document called Letters Testamentary. In other cases, if the total value of the estate is less than an amount set forth by that jurisdiction’s legislature, the estate may fall under the Small Estates Provision which requires less paperwork (for example, only a small estates affidavit) and does not have to undergo the full probate process.
Because these requirements vary by jurisdiction, and we cannot advise you in this matter, we always recommend consulting with an estates attorney licensed in your jurisdiction, as they will be familiar with the laws and policies that apply in your case. If you need to find an attorney, every state Bar Association has a lawyer referral program that can help you connect with a licensed specialist. The Clerk of Court is also often a helpful office, and they may be able to direct you to available resources.
What documents will I need?
We will need the following documentation if there is no beneficiary listed on a taxable account:
- Name and contact information of executor
- A legible, color copy of the executor’s driver’s license
- Executor’s social security number
- Court-appointed document showing executor designation
- A completed Estates Claim form
- Estate’s EIN number
- You can get one with the IRS if you don’t already have one.
- A copy of a recent bank statement for the bank account to which the executor will be transferring the funds (ideally in the name of the Estate)
To claim the assets, you will need to open a Betterment account under your name. When setting up a Betterment account, there is no obligation to fund the account or keep it open once the transfer process is complete. This process gives you access to our platform and allows us to move the assets from the decedent's account into yours.
Why do I need an EIN if there is no beneficiary listed and I have a Small Estate Affidavit?
When a beneficiary is not assigned, we will need an Estate EIN to help any potential withdrawals be properly reported under the decedent's Estate rather than the decedent's Social Security number. Providing an Estate EIN will also minimize any potential tax liabilities upon the receipt of assets from the decedent's account.
For further information on why an EIN is required for an Estate account, please refer to this IRS document on page 3, under "Identification Number." You can get an EIN with the IRS if you don’t already have one.
What is the timeline for the account transfer process?
The length of time it takes to transfer an account can vary based on the details of each case, including whether beneficiaries were listed, what documentation is shared with us initially, whether any withdrawals were made after the customer’s death, and multiple other complicating factors.
Generally, the review process —from the time we have confirmed that we have received your documentation—can take at least 2 to 6 weeks. The transfer process itself can take at least 1 to 3 weeks, depending on the transfers that need to take place and dividends that may have been received in the deceased customer’s account throughout the process.
Please keep in mind that we may need you to make changes in the receiving account (for example, in the case of beneficiaries), and we may need to request additional information from you throughout the process.
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