Robinhood just rolled out a new feature that allows account holders to name a trust as a death beneficiary. This is a small update with big implications—especially for those users who want to make sure their investments are protected and pass smoothly to the right people. In the past, Robinhood only allowed individual beneficiaries, which made things trickier for those of us who have taken the step of creating a revocable living trust. Now, it’s finally catching up with what many traditional financial institutions have allowed for years.
So why does this matter? If your Robinhood account is left without a proper beneficiary, it could end up going through probate. That means court delays, added legal fees, and potentially unintended outcomes, particularly if your beneficiary is a minor. If your account has an individual listed, it may avoid probate, but it will not protect that person’s interest in your account and funds – meaning their creditors or a future ex-spouse can seek a share of rights to the account funds.
But, if your trust is the named beneficiary, your account can be distributed privately and according to the exact instructions in your estate plan. This is a big win for families who want to stay in control and out of court.
How to Add Your Trust as a Beneficiary on Robinhood
Adding your trust as a beneficiary is simple and can be done directly from the Robinhood app. Here’s how:
Open your Robinhood app and tap the Account icon (bottom right).
Tap Settings (three horizontal bars in the upper left corner), then scroll down and select Beneficiaries.
Tap Add a Beneficiary, then choose Trust.
Enter the name of your trust, the date it was established, and the trustee’s information.
Review and save your changes.
Final Thoughts
This update is a perfect example of why estate planning isn’t just for the ultra-wealthy—it’s for anyone who wants to make life easier for the people they love. If you’ve already created a trust, take five minutes today to make this quick change in your Robinhood app. If you haven’t set up a trust yet, this is a great reason to start thinking about it. Whether you’re building your portfolio, growing your family, or just trying to be more intentional with your planning, making sure your assets are aligned with your estate plan is one of the smartest things you can do.
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