Vanguard Joint Account - Does NOT Allow Beneficiaries! Now what???

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Vanguard Joint Account - Does NOT Allow Beneficiaries! Now what???

Cindy Mastin
Rental Property Investor 路 Macomb Township, MI 路 Member since 2018 路 30 posts 路 6 votes

Please help! I set up a Trust Account and changed all of my Beneficiaries to that Trust. However, when I got to my Vanguard account it will not allow me to add a beneficiary because it is a "joint account" with my hubby. So basically, if my husband and I get eaten by zombies the same night, how will my Trust (my son) access those funds? So my plan I guess is to open another Vanguard Account in my name and put the Trust as my beneficiary. Then transfer our joint Vanguard account into that new Account. Has anyone done this or have another recommendation? Much appreciated!

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Max GallagherBusiness Member
Financial Advisor, CFP 路 Member since 2018 路 18 posts 路 27 votes
1y

Hi Cindy! Great question. 

Rather than listed as a beneficiary as you might do with an IRA or 401(k), you'll want your Trust to actually be the owner of your brokerage account. The process is pretty straightforward.. You can find instructions to open a Vanguard Trust Account online. Once the account is opened, you can then transfer your investments/cash from your joint account to the new Trust account. This transfer can be done in-kind and is a non-taxable event. 

Let me know if that makes sense or I can provide additional clarity!

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  • Max GallagherBusiness Member
    Financial Advisor, CFP 路 Member since 2018 路 18 posts 路 27 votes
    1y

    Hi Cindy! Great question. 

    Rather than listed as a beneficiary as you might do with an IRA or 401(k), you'll want your Trust to actually be the owner of your brokerage account. The process is pretty straightforward.. You can find instructions to open a Vanguard Trust Account online. Once the account is opened, you can then transfer your investments/cash from your joint account to the new Trust account. This transfer can be done in-kind and is a non-taxable event. 

    Let me know if that makes sense or I can provide additional clarity!

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    • Cindy Mastin
      OP
      Rental Property Investor 路 Macomb Township, MI 路 Member since 2018 路 30 posts 路 6 votes
      1y
      Thanks! That does make sense! I wasn't think about it like that. Thank you!

      Quote from @Max Gallagher:

      Hi Cindy! Great question. 

      Rather than listed as a beneficiary as you might do with an IRA or 401(k), you'll want your Trust to actually be the owner of your brokerage account. The process is pretty straightforward.. You can find instructions to open a Vanguard Trust Account online. Once the account is opened, you can then transfer your investments/cash from your joint account to the new Trust account. This transfer can be done in-kind and is a non-taxable event. 

      Let me know if that makes sense or I can provide additional clarity!


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  • James McGovern
    Flipper/Rehabber 路 Bloomfield CT 路 Member since 2020 路 1k+ posts 路 408 votes
    1y

    So as long as your son has the credentials to login, vanguard likely won't know when you are eaten by zombies 

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  • JD MartinBusiness Member
    Moderator
    Rock Star Extraordinaire 路 Northeast, TN 路 Member since 2015 路 10k+ posts 路 16k+ votes
    1y
    Quote from @Cindy Mastin:

    Please help! I set up a Trust Account and changed all of my Beneficiaries to that Trust. However, when I got to my Vanguard account it will not allow me to add a beneficiary because it is a "joint account" with my hubby. So basically, if my husband and I get eaten by zombies the same night, how will my Trust (my son) access those funds? So my plan I guess is to open another Vanguard Account in my name and put the Trust as my beneficiary. Then transfer our joint Vanguard account into that new Account. Has anyone done this or have another recommendation? Much appreciated!


     The easiest strategy is probably just to make sure you guys get eaten on different nights :P

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  • Cindy Mastin
    OP
    Rental Property Investor 路 Macomb Township, MI 路 Member since 2018 路 30 posts 路 6 votes
    1y

    LOL! Noted! 馃槅 

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