How to Add a Primary Beneficiary | Step-By-Step

Summary

A primary beneficiary is the person or entity you designate to receive your assets first upon your passing. Naming a beneficiary is important because it helps ensure your assets transfer according to your wishes and may help avoid probate. At iTrustCapital, the beneficiary process is the same for both IRA and Premium Custody Accounts: log in, navigate to the Beneficiaries menu, enter the required information, assign percentages, and save your changes. Be sure to review your beneficiary designations regularly to keep them aligned with your current wishes and life circumstances.

Looking to add a primary beneficiary to your iTrustCapital account? A primary beneficiary is the first in line to inherit your assets according to the percentages you assign to them. In this guide, we'll break down how to add a primary beneficiary to your iTrustCapital account with step-by-step instructions.

What Is a Primary Beneficiary?

A primary beneficiary is the person or entity you designate to receive your IRA assets first upon your death. Unlike a contingent beneficiary, who only inherits if the primary beneficiary is unable or unwilling to receive the assets, the primary beneficiary has first claim to your account. You can name multiple primary beneficiaries and assign each a specific percentage of your assets.

Key Facts About Primary Beneficiaries

Receives assets first if they survive the account holder
Can be an individual, trust, or organization
Percentage allocations among multiple primary beneficiaries must total 100%
Takes priority over contingent beneficiaries
Can be updated or changed at any time through your account

Primary Beneficiary vs. Contingent Beneficiary

Understanding the difference between primary and contingent beneficiaries is essential for proper estate planning:

Feature	Primary Beneficiary	Contingent Beneficiary
Definition	First in line to inherit IRA or PCA assets	Backup beneficiary if primary cannot inherit
When They Inherit	Immediately upon account holder's death	Only if primary beneficiary is deceased, disclaims, or cannot be located
Common Examples	Spouse, children, trusts	Siblings, grandchildren, charities

Why Naming a Beneficiary Matters

Designating beneficiaries for your IRA or PCA is an important part of financial and estate planning. Without a named beneficiary, your assets may:

Go through probate, a lengthy and potentially costly legal process
Be distributed according to state law rather than your wishes
Create unnecessary complications for your heirs
Cause delays in your loved ones receiving the assets

By naming a primary beneficiary, you help ensure your assets transfer directly to your chosen recipients and provide a smoother transition for your family.

How to Add a Primary Beneficiary at iTrustCapital

Adding a primary beneficiary to your iTrustCapital account is a straightforward process. Follow these steps:

Log into your iTrustCapital account using your credentials on the web or mobile app.
Navigate to the Beneficiaries menu by clicking on “Account Options”
Click "Manage Primary Beneficiaries" and then click “Add Primary Beneficiary” to begin the designation process.
Enter the beneficiary's information, including their relationship to you.
Assign a percentage of your assets to this beneficiary (if naming multiple primary beneficiaries, ensure percentages total 100%).
If primary beneficiary is your spouse, simply hit “Continue” after filling out information
1. *If you reside in a community property state, and your primary beneficiary is not your spouse: you will need to upload a signed Spousal Consent Form and hit “Continue”
In the Directive section you must select one of two options:
1. Option A - If a primary beneficiary passes away before you, their share will be divided proportionally among the remaining surviving beneficiaries.
2. Option B - If a primary beneficiary passes away before you, their share will go to their heirs or descendants.
Review and confirm all information is accurate and check the box agreeing to the terms before submitting.

You can add multiple primary beneficiaries and update your designations at any time as your circumstances change.

Frequently Asked Questions

What is the difference between a primary and contingent beneficiary?

A primary beneficiary is first in line to inherit your IRA or PCA assets upon your death. A contingent beneficiary only receives assets if the primary beneficiary is deceased, disclaims the inheritance, or cannot be located. Think of a contingent beneficiary as your backup choice.

Can I name multiple primary beneficiaries?

Yes, you can name multiple primary beneficiaries for your IRA or PCA. When doing so, you must assign a percentage to each beneficiary, and the total percentages must equal 100%. For example, you could name two children as primary beneficiaries, each receiving 50% of your assets.

How do I change my beneficiary designation?

You can update your beneficiary designation at any time by logging into your iTrustCapital account, navigating to the Beneficiaries menu, and editing or removing existing beneficiaries. It's recommended to review your beneficiary designations after major life events such as marriage, divorce, or the birth of a child.

What happens if I don't name a beneficiary?

If you don't name a beneficiary, your IRA or PCA, assets may be distributed according to your account custodian’s default rules, which could result in the assets going through probate or being distributed according to state law instead of your wishes.

Do beneficiary designations override a will?

In many cases, beneficiary designations on accounts such as IRAs and custodial accounts generally take precedence over instructions in a will. This is why it’s important to keep your beneficiary designations up to date and aligned with your current wishes.

How often should I review my beneficiary designations?

It's recommended to review your beneficiary designations at least annually and after any major life events, such as marriage, divorce, the birth of a child, or the death of a beneficiary. Regular reviews ensure your designations remain aligned with your current wishes and circumstances.

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This article is for informational purposes only and is not intended to constitute investment advice in any way or constitute an offer to buy or sell any cryptocurrency, digital asset or security or to participate in any investment strategy.

iTrustCapital is a fintech software platform for alternative assets. iTrustCapital is not an exchange, funding portal, custodian, trust company, licensed broker, dealer, broker-dealer, investment advisor, investment manager, or adviser in the United States or elsewhere. iTrustCapital is not affiliated with and does not endorse any particular digital asset, precious metal or investment strategy.

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