How to Add and Remove Joint Ownership to Investments

There are many good reasons to add or remove joint ownership to a mutual fund, investment account or annuity. Adding or removing a joint owner can be something that you dread and may want to put off, but it doesn’t have to be that intimidating. You can add and remove joint owners to investments by following a few steps.

Difficulty: Moderately Easy

Instructions

Things You'll Need:

• Forms
• Letter of Instruction
• Potentially a Medallion Signature Guarantee

Adding a Joint Owner

1. Call the investment or insurance company to see if they require special papers. Some companies can add a joint owner with a letter of instruction. This is nothing more than a letter that you sign saying that you want the person added.

2. See if a medallion signature guarantee is needed. This can be obtained by signing the form in front of a qualified officer of the bank. (Branch managers usually are allowed to do this.)

3. Know the person’s social security number, date of birth and address. All of this information will be necessary when you add a joint owner.

4. See if they need the forms to be signed in front of the representative. Since laws have changed due to Homeland Security some forms may need to be signed by the photo ID carrying, joint owner in front of the representative. See if that is the case.

5. Fill out the pertinent information including their drivers license number, have them sign it, and submit it to the company to add the new joint owner.

Removing a Joint Owner

6. Understand that sometimes the entire account must be closed and a new one opened. Many times joint ownership is not removed but a new solely held account has the assets of the joint account transferred to it.

7. Get the letter of instruction. Regardless of whether they can remove a name or need to open a new account, a letter from both owners is necessary to remove a joint owner.

8. Sign the forms. If you are dealing with annuities, then a simple signature of both parties on the form is all that is necessary. With brokerage accounts, the individual left with the new account will have to fill out new forms.

9. Okay the movement of assets. The letter of instruction should contain information telling the financial institution to transfer the assets to the new individual account and close the old joint account.

Tips & Warnings

• If you want to add children so you are certain that they will inherit the monies, use a POD or TOD to do this. These are simple and easily changed named beneficiaries. Unlike the joint owner, POD and TOD’s cannot get access to assets while the owner is living.