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Beneficiaries

What does it mean to add a beneficiary to my Frec account?

A beneficiary is an individual or trust that you designate to receive the assets (including cash and securities) held in your account upon your death, or upon the death of the last surviving owner of a joint account.

If you do not designate a beneficiary, the assets in your account may become part of your estate and be distributed according to applicable law.

Beneficiaries can be individuals or trusts. You can add multiple beneficiaries, including both primary and contingent beneficiaries. If you would like to designate another type of beneficiary, please contact help@frec.com to determine whether it is eligible.

If you reside in Louisiana, you cannot add a beneficiary to your account. You may want to consult an attorney, tax professional, or estate planner familiar with your particular situation.

What is the difference between a primary and contingent beneficiary?

A primary beneficiary is first in line to receive the assets in your account upon your death (or the death of the last surviving owner of a joint account). You can designate multiple primary beneficiaries and assign each a percentage of your account assets.

A contingent beneficiary is second in line to receive the assets in your account. Contingent beneficiaries will inherit the assets only if none of the primary beneficiaries are living at the time of the account holder's death (or the death of the last surviving owner of a joint account). You can designate multiple contingent beneficiaries and assign each a percentage of your account assets.

For both primary and contingent beneficiaries:

  • You must assign whole percentages (for example, 25%, 50%, or 100%).
  • The total allocation for all primary beneficiaries must equal 100%.
  • The total allocation for all contingent beneficiaries must also equal 100%.
  • Each beneficiary must receive at least 1% of the allocation.
  • You may designate a single beneficiary to receive 100% of the account assets.

You may designate up to six (6) primary beneficiaries and up to six (6) contingent beneficiaries.

Can I add a trust as a beneficiary?

Yes. You can add a trust as a primary or contingent beneficiary by following the steps above and selecting Trust. Be sure to include the trust's date of creation and tax ID.

How do I set up a beneficiary on my Frec account?

Setting up a beneficiary for individual or joint accounts

If you have an individual or joint account, you can add a beneficiary at any time by following these steps:

  1. Click on your name or Account > Account settings
  2. On the Profile tab, scroll down to Beneficiaries and click Edit

From there, you’ll be able to add primary and contingent beneficiaries. You will first be required to add a primary beneficiary before you're able to add any contingent beneficiaries.

For joint accounts, you will need to inform your account co-owner of the beneficiaries you are designating and attest that your co-owner voluntarily and irrevocably consents to the designation and payment upon your deaths.

Setting up beneficiaries in Community/Marital Property

If you have a spouse and live in a Community/Marital Property state, you will need to inform them of the beneficiaries you are designating and attest that your spouse voluntarily and irrevocably consents to the designation and payment as directed. Known Community/Marital Property states are Arizona, California, Idaho, Nevada, New Mexico, Texas, Washington, and Wisconsin.

What information do I need to add a beneficiary?

Depending on the type of beneficiary, you may be asked to provide information such as:

  • Full legal name
  • Date of birth
  • Residential address
  • Relationship to you
  • Social Security number or Taxpayer Identification Number (when required)

If you are naming a trust as a beneficiary, you may also need to provide the trust's legal name and additional supporting information.

Can I update my beneficiaries?

Yes. You can add, remove, or update your beneficiary designations at any time while your account is open, subject to applicable laws and account requirements.

When do beneficiary changes take effect?

Changes to your beneficiary designations generally take effect once your request has been processed and reflected on your account. You can review your current beneficiary designations in your account settings.

What happens if a primary beneficiary dies before I do?

If a primary beneficiary predeceases you, what happens depends on whether any other primary beneficiaries are still living:

  • If one or more primary beneficiaries survive you: The deceased primary beneficiary's share will generally be reallocated pro rata among the surviving primary beneficiaries. Contingent beneficiaries do not inherit assets in this case, since they only receive assets if no primary beneficiary survives you.
  • If no primary beneficiaries survive you: Your account assets will pass to your contingent beneficiaries, if any, in accordance with your beneficiary designation.

The exact distribution will be handled in accordance with your beneficiary designation and applicable law, and may vary depending on how your designation is structured. If you have questions about your estate planning goals, please consult an attorney or estate planning professional.

Additional information

Beneficiary designations are subject to applicable laws, the terms of your account agreement, and any documentation required to process a claim after your death.