Updating your beneficiaries

What is a beneficiary?

A beneficiary is the legal term for a person or entity (such as a trust or charitable organization) you designate to inherit the assets from your accounts.

Why designating beneficiaries is important

Adding beneficiaries on all your accounts helps ensure your Fidelity assets go where you want. Your beneficiary designations override instructions in a will, so it's important to keep them up to date.

If you don't name a beneficiary, your assets will go through the probate process, which can be costly and time consuming. Or, for employer accounts like a 401(k) or 403(b) that don't have beneficiaries, your plan rules may determine who receives your assets. Those with complex estate plans should consult their attorney or tax professional to discuss the best approach for naming beneficiaries.

How designating beneficiaries works

You can name one or more primary beneficiaries to receive a percentage of assets for each of your accounts. You can also name secondary (or contingent) beneficiaries, which serve as alternates if none of your primary beneficiaries are alive. Generally, all you'll need to get started is a name and birth date for each beneficiary (if naming a person). The more details you provide, such as a Social Security number, the easier the transfer of assets will be for your beneficiaries.

Other considerations for naming beneficiaries

• If you're married, some employer retirement accounts may require your spouse's permission to add or change a beneficiary. We'll prompt you with instructions if consent is needed.
• If an employer account is not listed among other accounts, it may not be serviced by Fidelity. Contact your employer's plan administrator to update beneficiaries.
• For some annuities, you may need to contact your plan's trustee to make beneficiary changes.