What happens when a Wealthfront account owner passes away?

Who to contact?

Whether you are the beneficiary, a family member or friend, or were appointed to handle the estate, we’ll first need to be notified of the individual’s passing. You can contact us by emailing us at support@wealthfront.com. 

Once we are notified, we may take these steps to protect the individual’s assets:

• Restrict login access
• Restrict deposits, transfers and withdrawals
• Waive advisory fees

We’ll also conduct a review of the account, including identifying any named beneficiaries, and provide next steps over email.

What documents will you need?

Depending on the account, these are some of the documents we may request: 

• A copy of the death certificate
• Probate documents (i.e. Letters of Administration, Letters Testamentary) 
• A Small Estate Affidavit (if bypassing probate)
• Trust documents (for Wealthfront Trust Accounts)
• Beneficiary / Executor ID Form
• Journal Form (for transfers between Wealthfront accounts)
• Wire Request Form (for wire transfers to another institution)
• IRA Distribution Form
• Roth IRA Distribution Form
• Receiving firm’s IRA transfer paperwork 

Once you’ve collected the necessary documents, here’s how to send them to us:

• Upload using your Wealthfront login (if applicable)
• Email us for a secure link to send us the documents
• Fax  800-366-1679

How long before the assets in a Wealthfront account are transferred to the beneficiary or to the Estate?

The amount of time it takes to transfer the assets depends on the type of account and when we receive the required documents. In most cases, it can take 2-4 weeks to complete the transfer from the date we receive the required paperwork in good order. 

Other things to consider:

• Wealthfront doesn’t support Inherited or Beneficiary IRA accounts, or Estate accounts.
• Wealthfront can approve a transfer directly from the decedent’s account to an Estate, or Inherited IRA FBO the beneficiary via ACATS. More information can be found here. 
• A step-up in cost basis means the purchase date and price of an inherited asset is adjusted to its fair market value on the date the owner died. Wealthfront may apply a partial or full step-up in cost basis as needed. Any questions about tax implications related to a step-up should be directed to a tax advisor.

 

This material is provided for informational purposes only and should not be construed as personalized investment or tax advice. Wealthfront does not provide tax, legal, or financial planning advice. Please consult with a qualified professional regarding your specific tax and financial situation. Nothing in this communication should be construed as an offer, recommendation, or solicitation to buy or sell any security or a financial product. Investment management and advisory services are provided by Wealthfront Advisers LLC (“Wealthfront Advisers”), an SEC-registered investment adviser, and brokerage related products, including the cash account, are provided by Wealthfront Brokerage LLC, a Member of  FINRA/SIPC.