TreasuryDirect.gov has made it simpler for investors to buy, hold, and trade its securities online. But, few people realize how easy it is to access and make changes to your account. If you are looking to add a beneficiary to your TreasuryDirect Account, here’s what you need to know.
What Is a TreasuryDirect Account?
TreasuryDirect is an online platform for investors to create accounts to buy, hold, and conduct transactions with eligible securities. After you set up an account, you can purchase, manage, or redeem Treasury securities online. And, there is no fee to get started. But, there are a few requirements to open a personal account.
Most people and entities can open a TreasuryDirect Primary Account, as long as they meet these requirements:
- They are 18 years or older.
- They are legally competent.
- The entity has a valid Social Security Number or Employer Identification Number.
- There is a US address of record.
- They have an account with a US depository financial institution that accepts Automated Clearing House payments.
After you open a Primary Account, it is held solely in your name. But, you can create additional accounts that you can only access through your Primary Account. For example, a parent, legal guardian, or other person providing support can open a Minor Account for dependent children. There are also options to set up other Linked Accounts such as a Custom Account for specific savings goals or a Conversion Account to convert paper bonds into electronic securities
How Do You Add a Beneficiary to Your TreasuryDirect Account?
As mentioned above, you are the sole owner of the Primary Account. However, you can easily add a beneficiary to your TreasuryDirect Account and designate who you want to receive the funds upon your death. It’s important to note that you have the option to add multiple beneficiaries as well.
Although the thought may seem grim, adding a beneficiary is an effective tool for estate planning to ensure that your assets are distributed according to your final wishes. To add this designation to your account, you’ll need to complete the following steps:
- Log into your TreasuryDirect Account.
- Click the “ManageDirect” tab located at the top of the page.
- Select the”Beneficiary Designations” link from the menu on the left side.
- Click “Add Beneficiary.”
- Enter the beneficiary’s name, Social Security Number, and date of birth.
- Indicate the percentage of the account you want to designate for each beneficiary.
- Review the information before confirming your submission.
Once the information is saved to your account, the process is complete.
Adding a beneficiary to your account is a simple and straightforward process. Not only will it streamline asset allocation, but it should also provide peace of mind knowing that you can still help your loved ones even in death.
But keep in mind, there may be unusual or extenuating circumstances that cause you to change your final wishes. Here are a few important things to know when you add a beneficiary to your TreasuryDirect Account.
- You always have the option to edit, change, or remove a beneficiary.
- It is possible to name a trust as your beneficiary.
- When you name a minor as your beneficiary, they cannot access the funds until they turn 21.
For those who are using this account for estate planning, make it a regular habit to review your accounts, including the listed beneficiaries. And if you have any questions about your TreasuryDirect Account, you should find most of the answers to your questions in the FAQ sheet or through their Help Center.
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Jenny Smedra is an avid world traveler, ESL teacher, former archaeologist, and freelance writer. Choosing a life abroad had strengthened her commitment to finding ways to bring people together across language and cultural barriers. While most of her time is dedicated to either working with children, she also enjoys good friends, good food, and new adventures.