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

[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!

[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!