Fidelity Designated Beneficiary Agreement
Fidelity Designated Beneficiary Agreement: Everything You Need to Know
When it comes to planning your estate, ensuring that your assets get distributed according to your wishes is an important consideration. One way to ensure that your beneficiaries receive their rightful share is by designating them in a beneficiary agreement. Fidelity, a well-known financial services company, offers a designated beneficiary agreement for its customers. Here’s everything you need to know about the Fidelity designated beneficiary agreement.
What is a Designated Beneficiary Agreement?
A designated beneficiary agreement is a legally binding document that allows you to designate how your assets will be distributed after your death. It ensures that your assets will go to the people or organizations that you choose, bypassing the probate process and any potential legal disputes. A designated beneficiary agreement can be used for any type of asset, including bank accounts, retirement accounts, and investments.
What is the Fidelity Designated Beneficiary Agreement?
The Fidelity designated beneficiary agreement is a document that you can fill out and sign to designate beneficiaries for your Fidelity accounts. This agreement covers a variety of Fidelity accounts, including Individual Retirement Accounts (IRAs), 401(k)s, and annuities. By completing the agreement, you can ensure that your assets will go to the people or organizations that you choose.
What Are the Benefits of Using a Designated Beneficiary Agreement?
Using a designated beneficiary agreement can offer several benefits:
1. Avoid Probate
Probate is the legal process that occurs after someone dies. During probate, a court will review the deceased person’s assets and distribute them according to their will or, if there is no will, according to state law. This process can be time-consuming and expensive. By using a designated beneficiary agreement, you can avoid probate and ensure that your assets go to your loved ones without delay.
2. Protect Your Privacy
Probate is a public process, which means that anyone can access the information about your assets and how they are distributed. Using a designated beneficiary agreement can help protect your privacy and keep your financial affairs confidential.
3. Minimize Taxes
By designating beneficiaries for your accounts, you can minimize the amount of taxes that your beneficiaries will have to pay. For example, if you name your spouse as a beneficiary, they can roll over your retirement account into their own account without having to pay taxes immediately.
How to Complete the Fidelity Designated Beneficiary Agreement
To complete the Fidelity designated beneficiary agreement, follow these steps:
1. Download the Form
The form is available on the Fidelity website. You can also request a copy from Fidelity.
2. Fill Out the Form
The form will ask you to provide basic information, such as your name, address, and Social Security number. You will also need to provide the names and contact information for your beneficiaries.
3. Review and Sign the Form
Before you sign the form, review it carefully to ensure that all of the information is accurate. Once you are satisfied with the information, sign and date the form.
4. Return the Form to Fidelity
After you have signed the form, return it to Fidelity. You can do this by mail or by fax.
Conclusion
A designated beneficiary agreement is an excellent way to ensure that your assets go to the people or organizations that you choose. By using the Fidelity designated beneficiary agreement, you can avoid probate, protect your privacy, and minimize taxes. It is a relatively simple process that can provide peace of mind to you and your loved ones.
