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Beneficiary Designation Disclosure

Updated July 25, 2024

The following terms apply when you designate a beneficiary(ies) for your account(s) in the Betterment interface.
  • During your lifetime, accounts in your name belong to you. You may close the account(s), remove or add a beneficiary(ies), change the account type(s) or account ownership, or withdraw all or part of the account balance. You may change your named beneficiary(ies), change the percentages that you wish to distribute to each beneficiary, or revoke your beneficiary designations at any time during your lifetime. You understand that any change or revocation must be provided in writing to Betterment via the Betterment interface. 
  • Subject to applicable law, your beneficiary designation(s) will generally take precedence over any estate planning vehicles such as a will or trust. Please consult your attorney or other estate planning advisors about your specific situation.
  • For any joint accounts, including joint checking accounts and investing accounts, the surviving account holder has the right to revoke or change beneficiary designation(s) after your death. Only assets that are held in your account after the last account holder's death can be distributed to the named beneficiaries.
  • Betterment’s interface only supports certain beneficiary designations. Certain beneficiary designations, such as designating a minor or non-U.S. resident as a beneficiary of your account, may result in a delay in distribution. Should you have any questions relating to your beneficiary designations, please submit that request to Betterment’s customer service team by emailing support@betterment.com.
  • Betterment is not a tax advisor. Please consult a tax professional for guidance on the potential tax implications of your beneficiary designations.
  • If your IRA contains community property, there may be implications for the effectiveness of a beneficiary designation that does not designate your spouse as the primary beneficiary for at least 50% of the value of the account. You may wish to consult with an attorney or tax advisor to determine the impact of community property laws on your beneficiary designation. If you live in a state with community property statutes and do not designate your spouse as the sole primary beneficiary, you represent and warrant that your spouse has consented to such designation.
  • With respect to any 401(k) beneficiary designations:
    • You authorize and designate the named beneficiary(ies) you specify as your primary and/or contingent beneficiary(ies) under your 401(k) plan and you have taken all necessary action required by your plan administrator to effect such designation(s).
    • You understand that in the event your primary beneficiary or beneficiaries do not survive you, the benefit will be allocated proportionally among the remaining primary beneficiaries according to the rules of your 401(k) plan.
    • You understand that if you are legally married under federal law, your spouse must be the sole primary beneficiary unless he or she consents to the designation of another beneficiary in writing in the presence of a notary or plan representative using this form or as otherwise required by your plan administrator. You understand that any misrepresentation of marital status may invalidate your designation.
    • You understand that if no designated beneficiary survives you, or if Betterment Securities, as the custodian, cannot locate the beneficiary, Betterment will distribute the benefits to your spouse, if living; or, if your spouse isn't alive or you have no spouse, to your children in equal shares; or if no children, to your estate.
    • In the event of a dissolution of marriage, you should consult your plan documents or reach out to your plan sponsor for more information on how to designate or change beneficiary(ies).  
  • Please be aware that there is no ability to designate beneficiaries for crypto accounts and instead, the executor or administrator of the estate will need to work with Betterment and Gemini to transfer the crypto assets upon death of the account owner.