Of course! Here is a very lengthy and detailed guide on how to add someone to a Vanguard account, with various options and a step-by-step format.
How to Add Someone to Your Vanguard Account: A Comprehensive Guide
Hello there! Are you looking to share the responsibility of managing your investments, provide for a loved one's future, or simply grant someone the ability to view your account? You've come to the right place. Adding someone to your Vanguard account isn't a one-size-fits-all process. The steps and options available to you depend entirely on what you want them to be able to do. So, let's figure out your goal together and then walk through the process.
Let's begin by considering your objective. Do you want to:
Make someone a co-owner of the account?
Designate a beneficiary for your assets upon your death?
Give someone the ability to transact on your behalf?
Simply allow someone to view your account?
Add a trusted contact for emergency situations?
Once you have your answer, follow the steps below that correspond to your goal.
Step 1: Understand the Different Ways to Add Someone
Before you do anything, it's crucial to understand the different roles someone can have on your Vanguard account. Each has a different level of access and legal implication.
Option A: Adding a Joint Owner (For Brokerage Accounts)
This is a significant step that gives the other person equal ownership and access to the account. They can make trades, deposit or withdraw funds, and manage investments just as you can. This is common for married couples or partners who want to manage finances together.
Option B: Designating a Beneficiary (For Retirement and Transfer on Death Accounts)
This is a crucial estate planning step. A beneficiary has no access to the account while you are alive. Upon your death, the assets in the account will be transferred directly to the designated beneficiary, bypassing the often lengthy and expensive probate process.
Option C: Appointing an Agent or Power of Attorney
An agent, or someone with a power of attorney (POA), is authorized to act on your behalf. This is a great option if you want to grant someone the ability to manage your account for you, but without giving them ownership. This can be a limited or full authority, depending on your needs. This is often used for a trusted family member or a financial advisor.
Option D: Naming a Trusted Contact
This is a security feature, not a way to grant access. A trusted contact is someone Vanguard can reach out to if they have concerns about your physical or mental well-being or suspect you may be a victim of financial exploitation. They cannot view your account or make transactions.
Step 2: Follow the Step-by-Step Guide for Your Chosen Option
Now that you've identified your goal, let's dive into the specifics.
Guide A: How to Add a Joint Owner to a Vanguard Brokerage Account
Important: You generally cannot add a joint owner to an existing individual account. Instead, you'll need to open a new joint brokerage account.
Step 2.1: Gather Your Information You and the person you are adding will both need to have the following information readily available:
Full legal name
Social Security Number
Date of birth
U.S. street address
Employer name and address (if applicable)
Bank account and routing numbers for funding the account
Step 2.2: Open a New Joint Account
Log in to your Vanguard account (or create one if you are new to Vanguard).
From your account overview, look for the option to "Open a new account" or a similar link.
Choose "Brokerage Account" and then select the "Joint" option.
You will be prompted to provide your personal information and then the personal information of the other joint owner.
Carefully fill out all the required fields. The online application will guide you through the process.
Fund the account. You can transfer money from your bank account to the new joint account.
Review and Sign. Review all the information you have entered. You will likely be able to electronically sign the application.
Keep in mind that there is a minimum initial investment for most Vanguard mutual funds, so be prepared for that amount when funding your account.
Guide B: How to Add a Beneficiary to Your Vanguard Account
This is one of the most common ways to add someone to an account. It's especially important for retirement accounts like IRAs.
Step 2.1: Access the Beneficiary Section
Log in to your Vanguard account on the website.
Navigate to your "My Profile" or "Account Settings" section.
Look for a section titled "Beneficiaries" or "Transfer on Death (TOD)".
Step 2.2: Designate Your Beneficiaries
Select the account you wish to add a beneficiary to. Note that not all Vanguard account types (e.g., joint accounts, trusts) allow for beneficiary designations.
You will have the option to name both primary beneficiaries and contingent beneficiaries.
Primary beneficiaries are the first in line to receive the assets.
Contingent beneficiaries will receive the assets only if all primary beneficiaries have passed away.
Provide the required information for each beneficiary, including their full name, Social Security Number, and date of birth.
Specify the allocation. You can choose to allocate a percentage of the assets to each beneficiary. For example, you can give your spouse 100% or split it 50/50 between your two children.
Review and save. Make sure all the information is accurate before submitting.
Pro-Tip: Vanguard allows you to name multiple beneficiaries and specify the percentage each should receive. You can also use a "per stirpes" or "per capita" designation, which determines how assets are distributed if a beneficiary predeceases you. This is an important distinction, so be sure to understand what each means before you finalize your choices.
Guide C: How to Appoint an Agent or Power of Attorney
Step 2.1: Locate the Necessary Form
The easiest way to do this is to search for "Vanguard Agent Authorization Form" or "Vanguard Power of Attorney Form" on the Vanguard website or through a quick search.
Download the correct form. There may be different forms for "full" and "limited" authorization.
Step 2.2: Complete the Form with Care
Fill out the account owner's information (that's you!) and the agent's information, including their name, address, and contact details.
Specify the type of authority you are granting. This is a critical step. Do you want them to have "full" authority to make any transactions, or "limited" authority, for example, to only make inquiries?
Indicate the specific Vanguard accounts the authorization applies to.
Sign the document. This is where it gets serious. Your signature is required to validate the authorization.
Have the document notarized if required. Many agent authorization forms require a notary's signature to be legally binding. This is a very important step to ensure the document is valid.
Step 2.3: Submit the Form
Mail the completed and signed form to the address specified on the form. Vanguard's mailing addresses are typically provided on the form itself. For example, they might have a P.O. Box for regular mail and a physical address for overnight delivery.
Keep a copy for your records.
Guide D: How to Add a Trusted Contact
This is the simplest option and can be done entirely online.
Step 2.1: Log in and Find "Trusted Contact"
Log in to your Vanguard account.
Navigate to the "Profile & account settings" section, which is typically found under "My Accounts."
Look for a sub-heading like "Personal info" and then select "Trusted contact."
Step 2.2: Provide the Contact's Information
Follow the on-screen instructions to enter the name and contact information (phone number, email) of your chosen trusted contact.
Save the changes.
That's it! This person will not have access to your account, but Vanguard will know who to contact if they have any concerns.
Step 3: A Quick Note on Linked Accounts
You may have seen an option to "link accounts" on the Vanguard website. This allows one Vanguard account holder to view another's account, but it does not grant any transaction or management privileges. The other person must also have a Vanguard account. This is a useful feature for transparency between family members, but it's important to understand its limitations.
Frequently Asked Questions
How to add a minor to my Vanguard account?
To add a minor, you would typically open a UGMA/UTMA (Uniform Gifts to Minors Act/Uniform Transfers to Minors Act) account. These are custodial accounts where the minor is the owner, but you, the custodian, manage the account until they reach the age of majority. You can find information and application forms for these accounts on the Vanguard website.
How to change a Vanguard individual account to a joint account?
You generally cannot convert an individual account to a joint account. You will need to open a new joint brokerage account and then transfer the assets from your individual account into the new joint account. This may have tax implications, so it's wise to consult a tax professional.
How to add my spouse to my Vanguard account?
The best way to add your spouse depends on your goal. If you want shared ownership, you'll need to open a new joint brokerage account. If you just want them to inherit the assets, you can name them as a beneficiary on a retirement account or use a transfer-on-death (TOD) registration on a non-retirement account.
How to add a Power of Attorney (POA) to my Vanguard account?
To add a POA, you need to complete and submit the Vanguard Agent Authorization Form, which can be found on their website. Ensure the form is properly filled out, signed, and notarized if required, before mailing it to Vanguard.
How to find the beneficiary form on Vanguard's website?
Log in to your account, go to "My Profile" or "Account Settings," and look for the "Beneficiaries" or "Transfer on Death" section. The forms are usually available for download there, or you can complete the process online.
How to add a successor to my trust account at Vanguard?
Adding a successor trustee to a Vanguard trust account requires specific legal documentation. You will likely need to provide Vanguard with the trust document or a copy of the portion that names the successor trustee. It's best to contact Vanguard's trust services or a legal professional for guidance.
How to link my account with another Vanguard account holder for viewing access?
You can do this by logging in to your account, navigating to the "Overview" section, and selecting the "Linked Accounts" option. Follow the instructions to link your account with another Vanguard account holder's username.
How to change a beneficiary on a Vanguard account?
Log in to your account, go to "My Profile" and then "Beneficiaries." You can easily edit or update your beneficiary designations online by adding or removing individuals and adjusting the allocation percentages.
How to add a Transfer on Death (TOD) registration to a brokerage account?
For non-retirement brokerage accounts, you can add a TOD registration by designating beneficiaries. This process is typically handled through the online beneficiary management section in your account profile, similar to adding beneficiaries for an IRA.
How to add a trusted contact to my Vanguard account for security purposes?
Simply log in, go to "Profile & account settings," and under "Personal info," select "Trusted contact." Enter the person's information and save your changes. This is a quick and important step for your account security.