Direct Transfer to Beneficiaries Service

An alternative to probate

Direct transfer to beneficiaries service

Passing assets to heirs in a timely and cost-efficient manner is a serious concern for most people. When a loved one passes away, it is never easy. In addition to dealing with their personal loss, families are often left with both expected and unexpected responsibilities. There may be large financial obligations associated with a funeral, medical bills, basic living costs and funding a child’s education, and, possibly, the sale of assets.

Wills and trusts offer viable solutions for controlling property distribution. However, the assets covered by these estate planning alternatives may be subject to probate and gaining access to them can take valuable time.

As an alternative, we offer them the Raymond James Direct Transfer to Beneficiaries Service, legally known as a Transfer on Death agreement. This is a solution to be considered along with a will or trust in an estate plan. With it, the portion of an estate held in a brokerage account custodied at Raymond James may avoid probate and be quickly transferred to your chosen beneficiaries.

What exactly is DTBS?

DTBS is a legal agreement between an individual and Raymond James to facilitate the transfer of assets to beneficiaries. Upon an investor’s death, Raymond James coordinates the passage of assets to heirs according to the written agreement.

DTBS allows assets to be divided equally among beneficiaries or according to percentages determined by you. By eliminating the probate process, DTBS allows for a faster, more efficient method of transferring assets.

DTBS allows securities to avoid probate

Probate can sometimes be costly and tie up assets for more than a year, during which time heirs do not have access to funds needed to pay for both normal and unexpected expenses. With a DTBS agreement, the cash and securities in an account custodied by Raymond James will bypass probate and be transferred directly to beneficiaries.

DTBS is not a will

Unlike a will, DTBS does not cover assets held outside of an account custodied by Raymond James. For instance, personal assets such as cars, real estate and personal possessions are not covered. DTBS does not replace a will or a trust. Rather, it is meant to complement a comprehensive estate plan that includes a will, trust or both.

DTBS does not alleviate the burden of estate taxes

While DTBS will allow for cash and securities to bypass probate, it has no effect on the tax liabilities associated with an estate. Beneficiaries remain responsible for any estate taxes. You should consult with your attorney or tax advisor to discuss possible tax implications.

Not all assets are eligible for DTBS

Only cash in an account and those securities registered in “street name” – that is, certificates held by us for your benefit in a single or jointly owned Raymond James account – are eligible. Non-exchange traded securities, such as limited partnerships, precious metals, variable annuities, fixed annuities, commodities, jumbo CD and mutual funds not held at Raymond James are ineligible.

You retain control of the assets

During your lifetime, you retain control of your assets. You will continue to receive all interest and dividends, and will be responsible for all taxes incurred on the assets. In short, with DTBS, we continue to assist you in pursuing your personal investment goals.

A DTBS agreement can be changed or revoked

A DTBS agreement can be changed at any time by completing a new agreement. In addition, a DTBS agreement can be revoked by filing a letter of revocation.

Initiating a DTBS agreement

DTBS is available to anyone with an account custodied by Raymond James & Associates and can be initiated relatively quickly, with a minimum of paperwork.

The following fees apply to the agreement:

• $75 to initially establish the account,
• $50 to modify the terms of any beneficiary designation or to modify distribution of assets to beneficiaries,
• $25 for each additional listed beneficiary over eight, either when the agreement is established or when changes are made to the agreement, and
• $200 for the processing fee, payable when assets are transferred to beneficiaries.

These fees are specific to DTBS agreements and do not include any other fees customarily charged by Raymond James, such as custody and transaction fees.

How does DTBS work?

Upon an investor’s death, a named beneficiary will need to contact their Raymond James financial advisor. It is recommended that this procedure be explained to one of the beneficiaries and this person be made responsible for contacting us. We will then assist in the completion of all required documents for transferring assets into separate accounts for each beneficiary.

At this point, assets will be transferred to the beneficiaries and they will have control of all securities as defined in the DTBS agreement.

Further information

or additional information about DTBS agreements and how this service can ease the process of transferring assets to your beneficiaries, please contact your Raymond James financial advisor. If you are not yet a client, please use the Office Locator to find the office most convenient to you.

Return to top.