Vanguard Transfer On Death Form
Vanguard Transfer On Death Form
The Transfer on Death Plan offers a convenient way to pass certain types of Vanguard nonretirement assets to your heirs outside of probate. You retain full control of the assets during your lifetime; the named beneficiaries receive them only after your death. The plan can affect your tax strategies and estate plan, and may not be advisable for all investors. Consider it a supplement tonot a substitute foryour estate planning.
Questions?
Call us at 800-662-2739 on business days from 8 a.m. to 10 p.m. and on Saturdays from 9 a.m. to 4 p.m., Eastern time. Well be happy to help you.
*You can no longer enroll a joint nonretirement account in this plan. However, you may continue to maintain and revise plans already established for such accounts.
You want to impose restrictions on how your beneficiaries will receive and/or use the Vanguard nonretirement assets they inherit from you. You want to avoid or reduce the impact of estate taxes.
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You cant name a group of individuals, such as my descendants or children, per stirpes, as your beneficiaries for a Transfer on Death Plan because an authorized party, usually your executor, must identify the members of the group after your death. If you dont plan to have an estate that will go through probate and dont have an executor, there may be no authorized party who can act on behalf of your estate to identify your descendants or other members of another group of beneficiaries. Note that Vanguard has no obligation to locate your beneficiaries or inform them of their status.
Examples
Persons specifically namedMary Smith, John Jones, Tommy Davis Jr. The Martin Family Trust U/A, dated January 15, 2010 American Red Cross, SPCA
*Vanguard wont be responsible for monitoring how the organization or charity uses the assets or whether it qualifies as tax-exempt or nonprofit under IRS rules.
IDBP 0910
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Form FDBP
Clear All
1. Your information
Provide your full, legal name. If youve applied for an SSN or TIN but havent received it, enter the date on which you applied.
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Name of account owner first, middle initial, last Last four digits of Social Security number or taxpayer ID number (TIN) Zip code Daytime phone area code, number, extension Evening phone area code, number, extension
2. Plan information
Establish, change, or terminate a Transfer on Death Plan
Check one.
Change my existing plan. The designations you make on the next page will
completely replace any prior designations. Therefore, its important to list all the primary and secondary beneficiaries you want to designate, even if youre updating information for only one beneficiary.
If you check this box, skip to Section 4.
> Terminate my plan. If you terminate the plan on a joint account, you cant reestablish
the plan on that account.
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Form FDBP
A. All nonretirement accounts held solely in my name. B. All of our joint tenant accounts already enrolled in the plan.
This option applies only if youre changing an existing plan that currently includes the joint accounts; you cant establish a Transfer on Death Plan for joint accounts not already enrolled. All tenants must sign in Section 4.
Name of joint account owner (if applicable) first, middle initial, last
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Primary beneficiaries
Those you designate as your primary beneficiaries will be first to inherit your plan assets upon your death. Beneficiaries on joint accounts dont inherit plan assets until after the death of the last surviving joint owner. Indicate the percentages of your assets to be distributed to the designated primary beneficiaries upon your death. The total of the percentages below and on the next page must equal 100%.
Individuals
Name of individual first, middle initial, last Name of individual first, middle initial, last
Attach a separate sheet if you want to list more names.
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Birth date mm/dd/yyyy
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Name of individual first, middle initial, last Birth date mm/dd/yyyy
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Form FDBP
Trusts
This applies to an existing trust only; you cant create a trust with this form.
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Name of trust
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Organizations/Charities Name of organization or charity
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Name of organization or charity
%
If the percentages dont total 100%, Vanguard will allocate equal percentages totaling 100%.
Total
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100%
Secondary beneficiaries
Those you designate as your secondary beneficiaries will inherit your plan assets only if there are no surviving primary beneficiaries upon your death or after the death of the last surviving joint owner, if applicable. Indicate the percentages of your assets to be distributed to the designated secondary beneficiaries upon your death. The total must equal 100%.
Individuals
Name of individual first, middle initial, last Name of individual first, middle initial, last
Attach a separate sheet if you want to list more names.
%
Birth date mm/dd/yyyy
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Name of individual first, middle initial, last Birth date mm/dd/yyyy
%
Trusts
This applies to an existing trust only; you cant create a trust with this form.
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Name of trust
%
Organizations/Charities Name of organization or charity
% >
Name of organization or charity
%
If the percentages dont total 100%, Vanguard will allocate equal percentages totaling 100%.
Total
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100%
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Form FDBP
I/We, the undersigned plan account owner(s), hereby acknowledge that I/we have received and read the Vanguard Transfer on Death Plan Agreement and accept all terms and conditions set forth in the agreement and this form. I/We understand that the Transfer on Death Plan will supersede any conflicting provisions that I/we or my/our representatives have made or may make in any will, trust, agreement, or other instrument relating to the accounts enrolled under the plan.
Signature of account owner
Date mm/dd/yyyy
Date mm/dd/yyyy
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Mailing information
Make a copy of your completed form for your records. Mail your completed form and any attached information in the enclosed postage-paid envelope.
If you dont have a postage-paid envelope, mail to:
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Vanguard P.O. Box 1110 Valley Forge, PA 19482-1110 Vanguard 455 Devon Park Drive Wayne, PA 19087-1815
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accounts, Vanguard will transfer ownership of such Plan Accounts to your Plan Beneficiary following the death of the last surviving joint owner, if your Plan Account remains under the same registration as when you established the Plan. The surviving owner(s) may change the beneficiary designation, revoke the Plan, or change the registration after the death of an account owner in accordance with Vanguard policies and procedures. The surviving owner(s) must submit a new Application Form in order to establish the Plan on any new eligible account. 3.3 Conflicting Provisions in Wills, Trusts, and Other Instruments. Your Plan will supersede any conflicting provisions that you or your representatives have made or may make relating to your Plan Accounts in any will; trust; premarital, marital, or divorce agreement or decree; or other instrument. Vanguard will not honor any demand to transfer your Plan Accounts to any beneficiary other than your Plan Beneficiary unless directed to do so by court order issued by a court of competent jurisdiction.
Plan Beneficiaries at the time of your death, your Plan assets shall be payable to your secondary (contingent) Plan Beneficiaries, if any, who shall succeed to the rights of a primary Plan Beneficiary under this Agreement. 4.2 Changes to Plan Beneficiary. You may change your Plan Beneficiary at any time and from time to time. Any such change will revoke all prior Plan Beneficiary designations in their entirety. To be effective, a Plan Beneficiary change must (i) be made in a form and manner acceptable to Vanguard; (ii) be received by Vanguard prior to your death; and (iii) indicate the names and, if applicable, percentage entitlements of your new Plan Beneficiaries. Vanguard will not honor any change to your Plan Beneficiary purported to be made by a will, trust, agreement, or other instrument or state statute presented to Vanguard after your death, unless directed to do so by court order issued by a court of competent jurisdiction. (See special rules for joint accounts in Article 4.3.) 4.3 Special Rules for Joint Tenants With Right of Survivorship Accounts. If your Plan Accounts are jointly held, you can change the Plan Beneficiary by sending instructions to Vanguard signed by all joint owners. Following the death of one or more joint owners, the surviving owner(s) has the right to change any prior Plan Beneficiary designation. 4.4 Minors as Beneficiaries. If, upon the death of the last surviving account owner, a Plan Beneficiary known to Vanguard to be a minor is entitled to receive any undistributed assets of the Plan Accounts, Vanguard may, in its absolute discretion, transfer or distribute the assets to which the minor is entitled to an account for the benefit of the minor or to a person or persons demonstrated to Vanguards satisfaction to be authorized to act on behalf of the minor. Any person or entity representing his, her, or its authority to act on behalf of a minor shall submit such documentation to authenticate such authority as reasonably requested by Vanguard. The minors representative may be the guardian, conservator, or other legal representative of the minor; the natural parent of the minor (provided that, if the minors parents are divorced, Vanguard may deem only the parent having legal custody of the minor to be authorized to act on behalf of the minor); a custodian appointed for such minor under a Uniform Gifts to Minors Act, Uniform Transfers to Minors Act, or similar act; a person appointed by the account owner in a trust document or the owners last will and testament as admitted to probate; or any person having control or custody over the minor. 4.5 Plan Beneficiarys Rights and Responsibilities. A Plan Beneficiary has no rights to your Plan Accounts until after your death (or until after the death of the last
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surviving joint account owner, if applicable). Vanguard has no responsibility to locate or notify any Plan Beneficiary or the personal representative of the account owner or of any Plan Beneficiary of the existence of your Plan. It is the responsibility of the Plan Beneficiary to notify Vanguard of your death (or the death of the last surviving joint account owner, if applicable) and to provide Vanguard with (i) proof of your death, in form and substance acceptable to Vanguard; (ii) inheritance tax waivers or proof of payment of inheritance taxes, if required by state law; and (iii) any other documents that Vanguard deems necessary to transfer ownership of your Plan Accounts. Vanguard, in its sole discretion, may require and may rely upon a certification of the identity of Plan Beneficiaries from an authorized party, and shall be under no duty to make any inquiry or investigation thereof. Vanguard may request such additional information and documentation from the authorized party as Vanguard deems necessary regarding the distribution of the Plan Accounts. The authorized party may be the executor, administrator, or personal representative of the account owners estate; the trustee of a trust Plan Beneficiary; the Plan Beneficiary; or any other person deemed appropriate by Vanguard to act on behalf of the estate of the account owner or of the Plan Beneficiary after the account owners death. You agree that Vanguard shall be fully indemnified against any cost or damage it incurs in connection with its good-faith reliance upon the representations of the authorized party.
attorneys fees, arising out of or relating to (i) any provision of any statute, will, trust, agreement or other instrument, or any verbal arrangement or understanding, that conflicts with your Plan; or (ii) Vanguards reliance upon any certification, information, or documentation provided by you or an authorized party. 5.4 Amendment of Plan. Vanguard may amend this Agreement at any time (including retroactively). For these purposes, you shall be deemed to have consented to any Agreement amendment if you do not object to it by terminating your Plan in a form and manner acceptable to Vanguard within 30 days after Vanguard sends you notice of the amendment to the address of record for your Plan Accounts, or, if you have consented to online delivery of agreements, to your e-mail address of record. The terms of the Agreement in effect at the death of the last surviving account owner will control the disposition of assets under the Plan. 5.5 Termination of Plan. You may terminate your Plan at any time by giving Vanguard appropriate notice. To be effective, the termination notice (i) must be in a form and manner acceptable to Vanguard; and (ii) must be received by Vanguard prior to your death (or prior to the death of the last surviving joint owner, if applicable). Vanguard may terminate your Plan at any time by notifying you in writing. Any such termination notice by Vanguard will be effective 30 days after the date of notification. 5.6 Notices. Any notice, request, designation, change, or instruction made under this Agreement shall be made in writing, and may be made electronically through Vanguards website, if and to the extent available. 5.7 Disputes. In the event of any dispute or reasonable doubt as to the interpretation of this Agreement, any beneficiary designation submitted to Vanguard under the Plan or the appropriate actions to be taken regarding the ownership or transfer of the Plan Accounts, Vanguard reserves the right to seek judicial determination in a court of competent jurisdiction, which determination shall be binding upon all parties claiming an interest in the Plan Accounts. The costs of seeking such determination, including all costs, fees, and expenses (including attorneys fees), shall be borne by the Plan Accounts. 5.8 Governing Law. The Plan shall be governed by, construed, administered, and enforced according to the laws of Pennsylvania.
Article V: Miscellaneous
5.1 Vanguards Limited Role. The Plan may or may not be suited to your personal financial situation and estate planning objectives. In the absence of a separate written agreement, Vanguard has no responsibility for determining whether the Plan is suitable for you. Vanguard strongly encourages you to seek professional advice in making the determination that the Plan is appropriate before establishing your Plan. Vanguard has no fiduciary duty as trustee or otherwise under this Agreement. 5.2 Fees. Vanguard currently charges no special fees to establish or maintain your Plan. However, if deemed necessary, Vanguard reserves the right to impose such fees in the future. 5.3 Indemnification. You, your estate, and your successors-in-interest agree to indemnify and hold harmless Vanguard and, in the case of a brokerage account, Vanguard Marketing Corporation and its successors, parents, subsidiaries, affiliates, directors, officers, and employees, from and against all claims, actions, costs, and liabilities, including reasonable
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2009 The Vanguard Group, Inc. All rights reserved. TODPA 052009
Amid all the noise in the marketplace about what you should and shouldnt do to invest successfully, we believe the key is to pay attention to the few things that really matter: low costs, diversification, and a long-term perspective. Vanguard helps you stay focused on these essentialsand that can make a difference in your net investment results.
Investments are subject to risk. Diversification does not ensure a profit or protect against a loss in a declining market.
Vanguard Brokerage Services is a division of Vanguard Marketing Corporation, member FINRA and SIPC.
2010 The Vanguard Group, Inc. All rights reserved. BDBPCV 0910