Your financial beneficiaries are a critical part of your estate plan. They ensure that your hard-earned assets go to the people or organizations you intend to support after you're gone. If you have accounts with Merrill Edge, it's essential to keep your beneficiary designations up-to-date. Life changes – marriages, divorces, births, deaths, or simply a shift in your priorities – and your beneficiary information should reflect those changes.
Let's dive into the step-by-step process of changing your beneficiary on Merrill Edge, ensuring your legacy is distributed exactly as you wish.
Step 1: Understand Why Beneficiary Designations Matter (And Engage Yourself!)
Before we even talk about how to change beneficiaries, let's take a moment to understand why this is so incredibly important. Have you ever considered what would happen to your Merrill Edge accounts if something unexpected occurred? Without clear beneficiary designations, your assets could end up in probate, a legal process that can be time-consuming, expensive, and public. Moreover, your assets might not go to the people you truly want to receive them.
Think about it:
Marriage or Divorce: Did you recently get married or divorced? Your previous designations might still list an ex-spouse, or perhaps you haven't added your new spouse.
Birth or Adoption: Have you welcomed new children or grandchildren into your family? You'll likely want to include them in your plans.
Death of a Beneficiary: Sadly, beneficiaries can pass away. If your primary beneficiary is no longer living, do you have contingent beneficiaries named? If not, your assets could still go through probate.
Changing Priorities: Perhaps you want to support a different charity, or a family member's financial situation has changed.
Taking action now to update your beneficiaries is one of the simplest yet most impactful steps you can take for your financial peace of mind. Are you ready to take control of your financial legacy? Let's get started!
Step 2: Identify the Accounts Requiring Beneficiary Updates
Merrill Edge offers various types of accounts, and the beneficiary designation process can vary slightly depending on the account type. It's crucial to identify which of your Merrill Edge accounts need updates.
Individual Retirement Accounts (IRAs): This includes Traditional IRAs, Roth IRAs, SEP IRAs, and SIMPLE IRAs. Beneficiary designations for IRAs are particularly important because they often bypass probate entirely.
Brokerage Accounts: While not all brokerage accounts have beneficiary designations by default, many offer a "Transfer on Death" (TOD) designation. A TOD registration allows you to name beneficiaries who will inherit the assets directly upon your death, avoiding probate.
Other Accounts: If you have other specific types of accounts or investments with Merrill Edge, it's always best to confirm their beneficiary designation options.
To find your accounts:
Log in to your Merrill Edge online account: This is typically the easiest way to see all your active accounts.
Review your statements: Your monthly or quarterly statements will list your account types and numbers.
Contact Merrill Edge customer service or your Financial Advisor: If you're unsure about specific accounts, they can provide a comprehensive list.
Step 3: Gather Necessary Information for New Beneficiaries
Once you know which accounts you're updating, you'll need to gather specific information for each primary and contingent beneficiary you wish to name. Accuracy is key here to avoid delays and complications in the future.
Full Legal Name: Ensure you have the complete and correct legal name of each individual beneficiary.
Social Security Number (SSN) or Tax Identification Number (TIN): This is critical for individual beneficiaries. For trusts or organizations, you'll need their TIN.
Date of Birth: For individual beneficiaries, their date of birth helps with identification and sometimes with post-death distribution rules (especially for IRAs).
Relationship to Account Holder: Clearly state the relationship (e.g., spouse, child, sibling, friend, trust, charity). This can be important for tax implications and Required Minimum Distribution (RMD) calculations for inherited IRAs.
Contact Information: While often optional on the form, having an address and phone number for your beneficiaries can be helpful for Merrill Edge to contact them in the future.
Percentage Allocation: You will need to specify the percentage of the account each beneficiary will receive. The total must add up to 100%. You can use percentages up to two decimal places.
Primary Beneficiaries: These are the first in line to receive your assets.
Contingent Beneficiaries: These individuals or entities will receive the assets only if all primary beneficiaries are deceased at the time of your passing. It's highly recommended to name contingent beneficiaries to avoid probate.
Step 4: Choose Your Method of Updating Beneficiaries
Merrill Edge provides a few avenues for updating your beneficiary information. While online is often the most convenient, some situations may require a form or a visit.
Option A: Online (The Easiest Route for Many)
Merrill Edge generally allows you to update beneficiaries for many account types directly through their online portal. This is often the fastest and most convenient method.
Log in to your Merrill Edge account: Go to the official Merrill Edge website and enter your username and password.
Navigate to Beneficiary Information: Look for sections like "Account Services," "Profile & Settings," "Features," or "Manage Beneficiaries." The exact wording may vary, but it's usually intuitively placed. For Bank of America accounts linked to Merrill Edge, you might find it under "Features" and then "Manage" next to "Beneficiaries" within Online Banking.
Select the Account to Update: Choose the specific account for which you want to change beneficiaries.
Edit or Add Beneficiaries: Follow the on-screen prompts to input the information you gathered in Step 3. You'll typically be able to add new beneficiaries, edit existing ones, and assign percentages.
Review and Confirm: Carefully review all the entered information for accuracy before submitting. Any errors can lead to significant issues later.
Confirmation: You should receive an immediate online confirmation. It's also a good idea to check your account dashboard within a few business days to ensure the changes are reflected.
Option B: Using the Beneficiary Designation Form (For More Complex Situations or Preferred Method)
For certain account types, or if you prefer a physical document, you may need to complete a Beneficiary Designation Form. This form is often used for IRAs and other specific investment accounts.
Locate the Form:
Online: Search the Merrill Edge "Forms Library" on their website. Look for "Beneficiary Designation Form" or similar.
Contact your Financial Advisor: They can provide you with the correct form.
Call Customer Service: Request the form be mailed or emailed to you.
Fill Out the Form Accurately:
Type or print clearly in ink. Illegible forms can be rejected or cause delays.
Account Number(s): Enter the full account number(s) you are designating beneficiaries for.
Account Owner Information: Your name, address, and contact details.
Primary Beneficiaries: Provide all the details gathered in Step 3 for each primary beneficiary (Name, SSN/TIN, Date of Birth, Relationship, Percentage).
Contingent Beneficiaries: Provide the same details for contingent beneficiaries.
Per Stirpes vs. Per Capita (Important Considerations!): Some forms allow you to choose between "Per Stirpes" and "Per Capita" distribution for contingent beneficiaries.
Per Stirpes: If a named beneficiary predeceases you, their share would typically pass to their descendants (e.g., your grandchildren).
Per Capita: If a named beneficiary predeceases you, their share would be equally divided among the remaining surviving beneficiaries.
Consult with a legal or tax professional if you're unsure which option is best for your specific circumstances, as this can have significant implications.
Spousal Consent (If Applicable):
If you are married and naming someone other than your spouse as the sole primary beneficiary for certain retirement accounts (like a 401(k) or some IRAs), your spouse may be required to sign a consent form. This protects their spousal rights under federal law. The form will clearly indicate if spousal consent is needed.
Often, this signature needs to be witnessed by a notary public or plan administrator.
Sign and Date the Form: Ensure your signature is consistent with what Merrill Edge has on file. Do not sign or date documents until instructed, especially if a notary is required.
Submit the Form:
Fax: Merrill Edge often provides a fax number for beneficiary forms.
Mail: Send the completed form to the Merrill Document Processing address provided on the form.
In-Person: Visit a Bank of America financial center (which often has Merrill Edge representatives) to submit the form. They may be able to assist with notarization as well.
Through your Financial Advisor: If you work with a Merrill Financial Advisor, they can guide you through the process and submit the form on your behalf.
Option C: Visiting a Financial Center
If you prefer in-person assistance, have complex questions, or need notarization, visiting a Bank of America financial center that houses Merrill Edge services can be beneficial.
Schedule an Appointment: It's advisable to schedule an appointment beforehand to ensure a representative is available to assist you with beneficiary changes.
Bring Required Documents:
Valid Government-Issued Photo ID: Driver's license, passport, etc.
Account Information: Account numbers.
Beneficiary Information: All the details gathered in Step 3.
Any existing beneficiary forms you might have.
Discuss Your Needs: Explain clearly that you want to update the beneficiaries on your Merrill Edge accounts.
Complete Forms with Assistance: The representative can provide the necessary forms and guide you through filling them out. They can also often notarize documents if required.
Step 5: Confirm Your Changes
After submitting your beneficiary changes, it's crucial to confirm that the updates have been processed correctly.
Online Account Review: Log in to your Merrill Edge account after a few business days (or as advised by Merrill Edge) to verify that the new beneficiary information is reflected accurately.
Confirmation Statement/Letter: Merrill Edge may send a confirmation statement or letter. Keep this for your records.
Contact Customer Service: If you don't see the changes online or receive confirmation within a reasonable timeframe, don't hesitate to call Merrill Edge customer service to inquire about the status of your request.
Step 6: Regularly Review and Update Your Beneficiaries
This isn't a one-and-done task! Life is dynamic, and your beneficiary designations should be too.
Annual Review: Make it a habit to review your beneficiary designations for all your financial accounts at least once a year, perhaps during tax season or your annual financial review.
Life Events: Immediately review and update your beneficiaries after significant life events such as:
Marriage or Divorce
Birth or Adoption of a child/grandchild
Death of a named beneficiary or a significant family member
Major changes in financial status for you or your beneficiaries
Changes in estate planning goals (e.g., establishing a trust)
By consistently reviewing and updating your beneficiaries, you ensure your wishes are honored and you provide clarity and ease for your loved ones during a difficult time.
Frequently Asked Questions (FAQs)
How to check my current beneficiaries on Merrill Edge?
You can usually check your current beneficiaries by logging into your Merrill Edge online account and navigating to the "Account Services" or "Profile & Settings" section, then looking for "Beneficiaries" or "Manage Beneficiaries" under each specific account.
How to add a new beneficiary to my Merrill Edge account?
You can add a new beneficiary online through your Merrill Edge account portal by selecting the account you wish to update and following the prompts to add a new beneficiary's details, or by completing and submitting a Beneficiary Designation Form.
How to remove an existing beneficiary from Merrill Edge?
To remove an existing beneficiary, you will typically follow the same process as adding a new one: either through the online portal's beneficiary management section where you can edit or delete names, or by submitting a new Beneficiary Designation Form that omits the previously named individual.
How to change beneficiary for an IRA on Merrill Edge?
For IRAs, you'll generally use the Merrill Edge online platform or complete a specific Beneficiary Designation Form. It's crucial for IRAs to ensure all required information (SSN, date of birth, relationship) is accurate, as this impacts post-death distribution rules.
How to update beneficiaries for a brokerage account (TOD) on Merrill Edge?
For brokerage accounts with a Transfer on Death (TOD) registration, the process is similar to IRAs – either through the online portal's beneficiary management or by submitting the appropriate Merrill Edge form for TOD designations.
How to get the Merrill Edge Beneficiary Designation Form?
You can find the Merrill Edge Beneficiary Designation Form in their online Forms Library on the official Merrill Edge website, by contacting your Merrill Financial Advisor, or by calling Merrill Edge customer service.
How to submit the Merrill Edge Beneficiary Designation Form?
You can submit the completed Beneficiary Designation Form via fax to the number provided on the form (e.g., 1.877.229.7160 for self-directed clients), by mail to the Merrill Document Processing address, or in person at a Bank of America financial center with Merrill Edge services.
How to handle spousal consent for beneficiary changes on Merrill Edge?
If you are married and designating someone other than your spouse as the sole primary beneficiary for certain retirement accounts (like 401(k)s or some IRAs), spousal consent may be required. Your spouse will need to sign a specific section on the Beneficiary Designation Form, often requiring notarization or a plan administrator's signature.
How to choose between "Per Stirpes" and "Per Capita" for beneficiaries?
"Per Stirpes" means if a beneficiary predeceases you, their share goes to their descendants. "Per Capita" means their share is divided among the remaining surviving beneficiaries. This choice has significant legal implications, so it's advisable to consult with a legal or tax professional to determine which option aligns best with your estate planning goals.
How to confirm my beneficiary changes have been processed by Merrill Edge?
After submitting, log back into your Merrill Edge online account within a few business days to verify the changes are reflected. You may also receive a confirmation statement or letter from Merrill Edge. If you don't see the updates, contact their customer service for status.
