Fidelity Beneficiary Form: A Step-By-Step Guide

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Fidelity Beneficiary Form: A Step-By-Step Guide

Creating a Fidelity beneficiary form is an essential step in ensuring that your assets are distributed according to your wishes after your passing. Fidelity Investments, one of the largest financial services companies in the world, provides a beneficiary form that allows you to designate who will inherit your Fidelity accounts. In this article, we will guide you through the process of filling out a Fidelity beneficiary form, highlighting the importance of beneficiary designations and providing step-by-step instructions.

Why Is a Fidelity Beneficiary Form Important?

A Fidelity beneficiary form is crucial because it ensures that your assets are transferred to the right individuals or entities after your death. Without a beneficiary designation, your assets may be subject to probate, which can be a lengthy and costly process. By designating beneficiaries, you can avoid probate and ensure that your loved ones receive their inheritance quickly and efficiently.

Who Can Be a Beneficiary?

Fidelity allows you to designate various types of beneficiaries, including:

• Individuals (e.g., spouse, children, siblings)
• Estates (e.g., your estate, a trust)
• Charities (e.g., non-profit organizations)
• Businesses (e.g., corporations, partnerships)

You can also designate multiple beneficiaries and specify the percentage of the account that each beneficiary will receive.

How to Fill Out a Fidelity Beneficiary Form

To fill out a Fidelity beneficiary form, follow these steps:

1. Log in to your Fidelity account: Go to the Fidelity website and log in to your account.
2. Click on "Account Settings": Click on the "Account Settings" tab and select "Beneficiaries" from the drop-down menu.
3. Click on "Add a Beneficiary": Click on the "Add a Beneficiary" button and select the type of beneficiary you want to add (e.g., individual, estate, charity).
4. Enter beneficiary information: Enter the beneficiary's name, address, and Social Security number (or tax ID number for non-individual beneficiaries).
5. Specify the percentage of the account: Specify the percentage of the account that you want the beneficiary to receive.
6. Add additional beneficiaries: Repeat steps 3-5 for each additional beneficiary.
7. Review and submit: Review your beneficiary designations and submit the form.

Types of Fidelity Beneficiary Forms

Fidelity offers various types of beneficiary forms, including:

• Fidelity Beneficiary Designation Form: This form allows you to designate beneficiaries for your Fidelity accounts.
• Fidelity Retirement Account Beneficiary Form: This form allows you to designate beneficiaries for your Fidelity retirement accounts (e.g., 401(k), IRA).
• Fidelity Annuity Beneficiary Form: This form allows you to designate beneficiaries for your Fidelity annuity contracts.

Common Mistakes to Avoid

When filling out a Fidelity beneficiary form, avoid the following common mistakes:

• Failing to designate beneficiaries: Failing to designate beneficiaries can result in your assets being subject to probate.
• Not updating beneficiary designations: Failing to update beneficiary designations after a change in circumstances (e.g., divorce, death of a beneficiary) can result in unintended consequences.
• Not specifying the percentage of the account: Failing to specify the percentage of the account that each beneficiary will receive can result in confusion and disputes.

Best Practices for Fidelity Beneficiary Forms

To ensure that your Fidelity beneficiary form is accurate and effective, follow these best practices:

• Review and update beneficiary designations regularly: Review and update your beneficiary designations regularly to ensure that they remain accurate and reflect any changes in your circumstances.
• Use specific language: Use specific language when designating beneficiaries to avoid confusion and disputes.
• Consider seeking professional advice: Consider seeking professional advice from a financial advisor or attorney to ensure that your beneficiary designations are accurate and effective.

Conclusion

Creating a Fidelity beneficiary form is an essential step in ensuring that your assets are distributed according to your wishes after your passing. By following the steps outlined in this article and avoiding common mistakes, you can ensure that your beneficiary designations are accurate and effective. Remember to review and update your beneficiary designations regularly to ensure that they remain accurate and reflect any changes in your circumstances.

We hope this article has been informative and helpful. If you have any questions or concerns about Fidelity beneficiary forms, please don't hesitate to comment below.