Can a minor be added as a Transfer on Death (TOD) beneficiary on a brokerage account?

Yes, a minor can technically be named as a Transfer on Death (TOD) beneficiary on a brokerage account.

However, there are important legal considerations to be aware of:

• In the United States, minors generally cannot enter into legal agreements or directly manage brokerage accounts.
• As a result, assets from a TOD designation cannot be transferred directly into a minor’s sole control.

Because of these limitations, additional planning is typically required to ensure the assets can be properly received and managed on behalf of the minor.

Common approaches may include:

• Naming a trust as the beneficiary
• Appointing a legal guardian or custodian to manage assets on the minor’s behalf

Given that requirements and implementation can vary based on state laws and individual circumstances, clients should consult with a qualified estate attorney familiar with U.S. regulations before proceeding. This helps ensure the beneficiary designation aligns with legal requirements and the client’s overall estate planning goals.