How to Add a Beneficiary on Etrade

Adding a beneficiary to your investment account is an important step that can help ensure your assets are transferred to the right person without unnecessary legal complications. In this guide, you will learn how to add a beneficiary on Etrade, choose between primary and contingent beneficiaries, and complete the setup process through the Etrade mobile app.

A beneficiary is the person who will inherit your account assets if something happens to you. By setting up beneficiaries, your assets can usually transfer directly to the people you choose through a Transfer on Death (TOD) designation instead of going through probate, which can be a lengthy and expensive legal process.

Add a Beneficiary on Etrade: Understanding How It Works

Before you add a beneficiary on Etrade, it is important to understand the two types of beneficiaries available:

• Primary beneficiaries: These are the first people in line to inherit your account when you pass away.
• Contingent beneficiaries: These are backup beneficiaries who only receive the account assets if all primary beneficiaries are unable to inherit.

Think of primary beneficiaries as your plan A and contingent beneficiaries as your plan B.

Etrade allows you to name up to 10 beneficiaries per account. You can divide them between primary and contingent categories based on your preferences.

Keep in mind that beneficiary designations generally take priority over instructions in your will or trust. This means the beneficiaries listed on your Etrade account may determine who receives the assets, regardless of what other documents say.

When adding beneficiaries, the percentage allocations must equal 100%:

• Primary beneficiaries must total 100%.
• Contingent beneficiaries must also total 100% if you add them.

Etrade will not allow you to save your changes unless the percentages are correctly allocated.

How to Add a Beneficiary on Etrade Using the Mobile App

To add a beneficiary on Etrade, follow these steps:

1. Open the Etrade mobile app.
2. Tap the Menu button in the bottom-right corner.
3. Select My Profile.
4. Find and tap Manage Beneficiaries.
5. Choose the account where you want to add a beneficiary.

If you have multiple Etrade accounts, you will see an account dropdown menu. Select the specific brokerage account where you want to add or update beneficiaries.

Add a Primary Beneficiary on Etrade

After selecting your account, you can add your first beneficiary.

Follow these steps:

1. Scroll to the Primary Beneficiary section.
2. Tap Add Primary Beneficiary.
3. A form called Edit Beneficiary will appear.
4. Select the beneficiary type.

For most users, the correct option will be Individual. This is used when naming a person, such as:

• Spouse
• Child
• Parent
• Sibling

If you want to name a trust or charity instead, you can select a different beneficiary type.

Next, complete the required information:

• First name
• Middle initial (if applicable)
• Last name
• Social Security number
• Date of birth
• Relationship to you
• Percentage of inheritance

Make sure the beneficiary’s name matches their legal identification documents exactly. Using nicknames or incorrect details could create problems when the account needs to be transferred.

Once you have entered all information, tap Continue.

Your new beneficiary will appear on the Manage Beneficiaries screen, showing their name and percentage share.

How to Add Multiple Beneficiaries on Etrade

If you want multiple people to inherit your account, you can add more than one beneficiary.

For example:

• One child receives 50%.
• Another child receives 50%.

Or:

• Spouse receives 70%.
• Children split the remaining 30%.

The important rule is that all primary beneficiary percentages must add up to exactly 100%.

You can use the same process to add additional people until your desired allocation is complete.

Add a Contingent Beneficiary on Etrade

A contingent beneficiary provides an extra layer of protection in case your primary beneficiary cannot inherit your account.

To add a contingent beneficiary on Etrade:

1. Go to the Contingent Beneficiary section.
2. Tap Add Contingent Beneficiary.
3. Complete the same information required for a primary beneficiary.
4. Assign the percentage share.
5. Make sure the total equals 100%.

Although adding contingent beneficiaries is optional, it can be a smart choice if you want a backup plan for your assets.

Review and Confirm Your Beneficiary Changes

Before your changes become active, Etrade will show a final review screen.

This screen will display:

• Your primary beneficiaries
• Your contingent beneficiaries
• Your Transfer on Death (TOD) agreement terms

The TOD designation is what allows your account assets to transfer directly to your named beneficiaries without going through probate.

Take time to review the legal agreement before continuing. Once you are ready:

1. Tap Confirm Changes.
2. Review the final information.
3. Tap Save.
4. Accept the confirmation message.

You should see a message confirming that your beneficiary update has been completed successfully.

How to Update or Remove a Beneficiary on Etrade

After you add a beneficiary on Etrade, you can return to the same Manage Beneficiaries section anytime to make changes.

You can:

• Add a new beneficiary.
• Remove an existing beneficiary.
• Change inheritance percentages.
• Update beneficiary information.

Updating beneficiaries is free, and you can make changes whenever your personal situation changes, such as marriage, divorce, the birth of a child, or other major life events.

Final Thoughts on Adding a Beneficiary on Etrade

Taking a few minutes to add a beneficiary on Etrade can save your loved ones significant time and legal stress in the future. By setting up primary and contingent beneficiaries correctly, you can make sure your investment account is transferred according to your wishes.

Review your beneficiary choices regularly and update them whenever your circumstances change to keep your account information accurate.