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Fidelity TOD Account

Fidelity allows per stirpes and trusts on a TOD account, and keeps an ex-spouse named after divorce.

Here is how Fidelity’s transfer on death registration works, quoted from Fidelity’s own form and agreement, and the two boxes that decide where the money goes.

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Quick Overview

A Fidelity TOD account is a nonretirement Fidelity account with beneficiaries named on Fidelity’s Transfer on Death form, so it passes to them at your death without probate. Fidelity allows per stirpes, lets you name a trust, and changes can be made online. Its agreement keeps a former spouse as beneficiary after divorce and is governed by Massachusetts law, which matters for Florida’s divorce statute. Whether your designations still say what you want comes down to the form on file, which the sections below walk through.

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Below, we walk through the 6 issues that decide whether this is the right move for you. Jump to any one.

  1. What a Fidelity TOD Account Is Which Fidelity accounts qualify, and what the form controls.
  2. Per Stirpes at Fidelity Fidelity allows it, and defines it with a worked rule. Leave the box unchecked and a grandchild can be cut out.
  3. Only Named Beneficiaries Share A child born after you sign the form is not included unless you name them or use per stirpes.
  4. Minors and Trusts Fidelity decides who receives a minor’s share. Naming a trust puts that decision in your hands.
  5. Divorce Does Not Remove an Ex-Spouse Fidelity’s agreement keeps a former spouse, and it chooses Massachusetts law.
  6. Changing Your Beneficiaries Online, or on paper signed by every owner.

That’s the quick version. The details below are what decide your situation, and where the costly mistakes hide.

What a Fidelity TOD Account Is

Fidelity’s nonretirement Transfer on Death beneficiary form sets the beneficiaries of a nonretirement Fidelity account or Fidelity Funds account registered as individual, joint tenants with rights of survivorship, or tenants by the entirety. It is not used for IRAs or 529 plans, which have their own forms. At your death the account passes to the beneficiaries who survive you, without probate. Until then the designation has no effect on your ownership, and you can change it without anyone’s consent.

The form has four lines for primary beneficiaries and four for contingent beneficiaries, with each beneficiary marked as a spouse, a non-spouse person, a trust or another entity, and a share percentage.

Per Stirpes at Fidelity

Fidelity is one of the firms that allows per stirpes on a TOD account. Each beneficiary line has a per stirpes checkbox, and the agreement defines what it means.

“The term "per stirpes" means that if any primary or contingent beneficiary dies before the account holder but has surviving descendants, that beneficiary's share is paid to such surviving descendants by right of representation. ... Each living child is allocated one share. The share of each deceased child with living descendants is allocated one share, which is divided equally among such living descendants. This subdivision is repeated at each succeeding generation ...”

Fidelity Transfer on Death form (1.925788.107), p. 4

Leave the box unchecked and a different rule applies. A beneficiary who dies before you drops out, and that share goes to the other surviving primary beneficiaries in proportion to their shares.

“or because one or more beneficiaries is deceased on the Date of ... Death, such eligible assets shall be distributed to the primary ... who survive the account holder in the same proportion that ... their original shares bear to each other ...”

Fidelity Transfer on Death form (1.925788.107), p. 4

So a parent who names three children without checking the box leaves a predeceased child’s children nothing from the account. Checking per stirpes for each child keeps each branch of the family in.

Only Named Beneficiaries Share

Fidelity does not accept a class such as “my children”. Only the people named on the form share, apart from the descendants a per stirpes box brings in.

“only named beneficiaries will share in the Account assets, and ... others who may be in the same group of descendants as named ... individuals (e.g., other children or grandchildren) but who are not ... named will not share in the Account assets ...”

Fidelity Transfer on Death form (1.925788.107), p. 4

A grandchild born after you sign the form is not included by name. Update the form after each birth, or name a trust that covers future grandchildren.

Minors and Trusts

If a beneficiary is a minor when you die, Fidelity decides who receives the share on the child’s behalf.

“If a beneficiary is a minor or otherwise under a legal disability, Fidelity may, in its absolute discretion, make all, or any part of the distribution for such beneficiary to: (1) a parent of such beneficiary; (2) the guardian, conservator, or other legal representative, wherever appointed, of such beneficiary; (3) an existing custodial account established for such beneficiary under a Uniform Transfers to Minors Act ...”

Fidelity Transfer on Death form (1.925788.107), p. 5

A child who receives money through a parent or a custodial account generally takes control of it as a young adult. Naming your revocable trust as the TOD beneficiary instead lets the trust hold the share until the age you choose. The Fidelity form accepts a trust as a beneficiary and asks for the trust’s taxpayer identification number and the trust date.

When did you last read your beneficiary forms?

Book a free 30-minute consult. We will check your Fidelity designations against your will or trust and fix the ones that do not match.

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Divorce Does Not Remove an Ex-Spouse

Fidelity’s agreement says a later divorce does not change the designation.

“sequent marriage, dissolution of marriage, remarriage or adoption, ... will not automatically add or revoke designations of beneficiaries. ... For example, if a former spouse was a designated beneficiary prior ... to dissolution of the marriage, the former spouse would remain a ... beneficiary after the dissolution unless his or her designation as ...”

Fidelity Transfer on Death form (1.925788.107), p. 5

Florida has a statute that voids a former spouse’s designation on a transfer-on-death account of a Florida resident. It does not apply if the governing instrument is governed by the laws of another state, and section H of Fidelity’s TOD agreement says the agreement is governed by the laws of the Commonwealth of Massachusetts. After a divorce, file a new designation rather than relying on Florida law to fix it.

Changing Your Beneficiaries

Fidelity takes changes online or on paper.

“You can change beneficiaries any time at Fidelity.com/beneficiary.”

Fidelity Transfer on Death form (1.925788.107), p. 1

A paper form must be signed by every account owner, and it can be uploaded or mailed. A new form replaces the old designation once Fidelity accepts it.

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Frequently Asked Questions

What Is a Fidelity TOD Account?

A Fidelity brokerage or Fidelity Funds account registered as individual, joint with right of survivorship, or tenants by the entirety, with beneficiaries named on Fidelity’s Transfer on Death form. At your death the account passes to the surviving beneficiaries without probate.

Does Fidelity Allow Per Stirpes on a TOD Account?

Yes. The TOD form has a per stirpes checkbox for each beneficiary, and the agreement defines per stirpes as passing a predeceased beneficiary’s share to that person’s surviving descendants by right of representation. If you do not check it, a predeceased beneficiary’s share goes to the other surviving beneficiaries.

Can I Name My Trust as the Beneficiary of a Fidelity TOD Account?

Yes. The form lets you mark a beneficiary as a trust and asks for the trust’s taxpayer identification number and the trust date.

Does Divorce Remove My Ex-Spouse From My Fidelity TOD Account?

Not under Fidelity’s agreement, which says a divorce does not automatically revoke a designation and a former spouse remains a beneficiary until a new designation is made. The agreement is governed by Massachusetts law, and Florida’s statute revoking a former spouse’s designation does not apply when the governing instrument is governed by another state’s law. File a new form after a divorce.

How Do I Change My Fidelity TOD Beneficiaries?

Online at Fidelity.com/beneficiary, or on the paper form, which can be uploaded or mailed. All account owners must sign the paper form.

Common Situations

The unchecked box. A father names his three children on his Fidelity TOD account and leaves the per stirpes boxes blank. One son dies before him, leaving two children. The son’s share goes to his two sisters, and his children receive nothing from the account.

The form signed before the divorce. A woman names her husband on her Fidelity TOD account, divorces, remarries and never updates the form. Fidelity’s agreement keeps her former husband as beneficiary, and because the agreement chooses Massachusetts law, Florida’s divorce statute may not help her new family.

Sources of Law

Updated on September 28, 2026. Reviewed by Kevin D. Klagge, Esq., Fla. Bar No. 99502. Attorney Kevin Klagge represents families, businesses, and international clients in estate and tax planning, business structuring, and international law, with a focus on Florida legal tools. He litigates estate and business issues in court. StepUpLaw is not affiliated with Fidelity Investments. General information about Florida law, not legal advice, and no attorney-client relationship is created. Firms change their forms; confirm the current version with Fidelity. Do not send confidential information until we have agreed to represent you.

More Guides on Florida Estate Planning

This guide is part of Florida Estate Planning.

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