Read one post above yours. It's called TRANSFER ON DEATH (TOD). ======== http://www.sec.gov/answers/todreg.htm Transfer on Death (TOD) Registration Transfer on death (TOD) registration allows you to pass the securities you own directly to another person or entity (your "TOD beneficiary") upon your death without having to go through probate. By setting up your account or having your securities registered this way, the executor or administrator of your estate will not have to take any action to ensure that your securities transfer to whomever you have designated. However, TOD beneficiaries must take steps to re-register the securities in their names. This typically involves sending a copy of the death certificate and an application for re-registration to the transfer agent. State law, rather than federal law, governs the way securities may be registered in the names of their owners. Most states have adopted the Uniform TOD Security Registration Act, although some have modified it. In addition, brokerage firms may decide whether or not to offer TOD registration. For more information about TOD registration, please visit the website of the National Conference of Commissioners on Uniform State Laws. There youâll find a summary of the Act, explaining how TOD registration differs from joint ownership. Youâll also find a list of the states that have adopted the Act and the full text of the Act. ======== It's amazing how much wrong information this is in this thread. Either... 1) You do not have nearly enough assets to even make this worthwhile or 2) You have not taken the time to educate yourself in estate planning (which again, requires assets).
Better is debatable since a TOD is a form that is completed in approx. 5 minutes. I know what you are hinting at as 'better' but your 'better' is much more time consuming and costly; whereas the TOD accomplishes what you want for very little cost. There are other estate planning tools available, but we can debate what is 'better' in terms of a brokerage account. The caveat is the TOD only covers what is in that account at that broker.
LLC is route I would suggest as well if you can structure correctly. be sure to keep paperwork in order otherwise taxman can make IB nightmare a walk in the park oxps can add beneficiaries as well
Most of the brokers have Transfer on Death (TOD) agreements for non-retirement accounts. Some of these include: Fidelity MB Trading optionsXpress Vanguard TD Ameritrade Schwab Scottrade TradeKing SogoTrade Can anyone from IB comment on whether IB could add Transfer on Death agreements? The only other solutions I have seen proposed on this thread are setting up a trust or LLC, but this seems to be overkill for those traders under 40 years old.