Transfer on Death (TOD) Beneficiaries give you more control over who should inherit your Robinhood brokerage assets if you were to pass away. Beneficiaries can choose to hold onto your stock and other equity¹, liquidate, or transfer them to another brokerage.
Without beneficiary designations, your assets may be sent into probate court before going on to your next of kin. Probate can be a lengthy process. To help ensure a smoother transition of assets, you can now add beneficiaries to your investment accounts.
To set up a beneficiary, simply head to your account settings and tap the Beneficiaries section to get started. (You should consult with your own estate, tax, financial, and/or legal advisors when designating beneficiaries to ensure it aligns with your estate plan.)
Louisiana state legislation limits our ability to transfer assets. As a result, Transfer on Death (TOD) registrations for beneficiaries are not currently available for Robinhood customers in the state of Louisiana.
Transfer on Death beneficiaries are recognized under state law for accounts with TOD registrations, which allow you to designate a beneficiary to receive your brokerage account holdings if you were to pass away. If that were to happen, beneficiaries could receive the assets without going through probate court.
Designated TOD beneficiaries should contact firstname.lastname@example.org to begin the process to transfer brokerage assets. Our estates team will coordinate with your beneficiaries from there.
To receive the brokerage assets, the beneficiaries will need to provide our estates team with the account owner’s death certificate, and may need to show their government-issued ID and other documentation. Any assets remaining will then be transferred to the beneficiaries.
Yes, you can change your beneficiaries at any time. Go to settings in your Robinhood app and tap Beneficiaries, then “Edit” to add a new beneficiary, change their information, or delete an existing one.
No. Robinhood will never contact a beneficiary except in the event of a transfer on death. You should make sure your beneficiaries know that they’ve been named and that they may need to reach out to Robinhood if you were to pass away.
Also, if you live in a common-law state, your spouse is, by default, your beneficiary unless you get consent from them to register someone else.
Not yet. Your assets will be split evenly across your named beneficiaries to the extent possible. Robinhood will round to whole percentages if you’ve elected a number of beneficiaries that can’t be divided by 100% (e.g. 34%, 33%, 33%).
Not at this time. We’re working to include crypto in the beneficiary process, but until then, any crypto assets will be distributed as a part of your estate.
Beneficiaries can generally receive all securities, cash, and options contracts² currently in your account. They can transfer non-cash assets, like stocks, to their own Robinhood account. From their account, beneficiaries can hold the assets, transfer them to another brokerage through ACATS, or liquidate them for cash.
Because options contracts can’t be split, if you designate more than one beneficiary and are holding options positions when you pass away, they may be closed and then distributed.
If you’re married and live or have lived in a community property state (Alaska,* Arizona, California, Idaho, Nevada, New Mexico, Texas, Washington, and Wisconsin), you have to get consent from your spouse or domestic partner before you can name another individual as your beneficiary.
You should consult with your own estate, tax, financial, and/or legal advisors when designating non-spousal beneficiaries to determine whether spousal consent is needed.
*Alaska is considered a community property state only when spouses opt-in to a community property arrangement.
To be eligible as a Beneficiary, the individual must be a natural person who is at least 18 years old, a U.S. Citizen, or otherwise be legally permitted to open a Robinhood account. See here for more information on eligibility.To be eligible as a Beneficiary, the individual must be a natural person who is at least 18 years old, a U.S. Citizen, or otherwise be legally permitted to open a Robinhood account. See here for more information on eligibility.
If you were to pass away without designating a beneficiary, assets in your account would then be eligible for probate court or a probate alternative, depending on the account value. Probate will be subject to the applicable laws of your state of residence.
Any active account owner not currently residing in the state of Louisiana. Transfer on Death (TOD) registrations are not currently available for Robinhood customers in the state of Louisiana. If you no longer live in the state of Louisiana but are still unable to add a beneficiary, please update your residential address to add one.
Robinhood does not provide legal advice or services. Please discuss these matters with the appropriate professional.
¹Certain terms apply, see the Transfer on Death Beneficiaries Agreement for additional information surrounding how options or assets held at affiliates like Robinhood Crypto are handled for transfer on death account type registrations.
²Options trading entails significant risk and is not appropriate for all investors. Certain complex options strategies carry additional risk. Robinhood Financial does not guarantee favorable investment outcomes and there is always the potential of losing money when you invest in securities, or other financial products. Investors should consider their investment objectives and risks carefully before investing. To learn more about the risks associated with options, please read the Characteristics and Risks of Standardized Options before you begin trading options. Please also be aware of the risks listed in the following documents: Day Trading Risk Disclosure Statement and FINRA Investor Information. Supporting documentation for any claims, if applicable, will be furnished upon request.