How to make role changes for personal and trust accounts

How to make role changes for personal and trust accounts

Changes to account roles such as account holders, custodians, or trustees are often made following significant life events.

To make changes to personal and trust accounts, complete the appropriate form for the account registration and submit any additional documentation required for the request.

If adding an organization role to a personal account, contact your Service team to determine requirements.

To add or change roles, you will need the following:

 

All accounts
  • Your firm name and master account number
  • The Schwab account number for which you are adding or changing roles
  • The following information for new custodian or current and new account holders / trustees:
    • Name
    • Home / legal address
    • Date of birth
    • Telephone number(s)
    • Citizenship
    • Residency
    • Identification number Tooltip
    • Employment status
    • Occupation and employer information
    • Rule 144 Tooltip and FINRA Rule 3210 information, if applicable
  • Copies of the following from each new account holder/custodian/trustee/entity agent who is a foreign resident:
    • Passport copies for each foreign resident associated with the account
    • An original or copy of the most recent utility bill, dated within 12 months of the application date, from each account holder claiming foreign residency
  • All account feature documentation signed by new custodian or all account holders / trustees. See How to add features to an account for more information
    • If the account currently has Options trading, only the new account holder(s) must sign the Options agreement to request approval to maintain the existing level.
  • Adobe® Reader® or Adobe Acrobat® 7.0 or higher (download the latest version on the Adobe website)
In addition to the information above, submit the following requirements based on the type of role change:
Add an account holder
  • One of the following:
    • A completed Update Your Schwab or Schwab One Account form –or–
    • A letter of authorization (LOA), signed by the existing account holder, agreeing to add the new party to the account and a completed Account Application Schwab One Personal Accounts form, signed by existing and additional account holders
  • New documentation is required to maintain the following existing account features (if applicable)
    • Aggregate Margin
    • Asset Based Pricing
    • Individual Trading Authority (LTA or FTA)
    • Individual Power of Attorney (POA)
    • Options
      • Only new account holder signs form unless expanded features or different options level are requested.
    • Preferred Mailing Address
    • Prime Broker
  • If the account has existing SLOAs, contact your Schwab service team to determine requirements.
Remove an account holder
  • A valid Letter of Authorization (LOA) signed by all existing account holders is required.
  • If the account has Schwab One Checkwriting or Visa Check Cards, submit an Update Your Schwab or Schwab One Account form to provide an updated signature card.
  • If the account has a designated beneficiary plan, Designated Beneficiary Plan Agreement needs to be resubmitted to revoke or maintain feature. 
  • If the account has recurring distributions or existing SLOAs, contact your Schwab service team to determine requirements.
  • If the account is approved for options trading additional review may be required.
  • If the account is approved for Schwab Bank Investor CheckingTM, existing Investor Checking account must be closed, account converts to new registration, and new Investor Checking account is opened. 
Change the custodian
  • If the current custodian is still living:
    • A completed Account Application (Schwab One Personal Accounts) form signed by the new custodian, and
    • A notarized or witnessed Letter of Authorization (LOA) signed by the resigning custodian or, if the custodian is unwilling to resign, a court order 
  • If the custodian is deceased, contact your Schwab service team for instructions.
  • If the account has recurring distributions, LOAs signed by the new custodian to authorize the recurring transactions.
  • If the account has existing SLOAs, SLOAs signed by the new custodian. 
Nominate a successor custodianSection 11 of the Account Application (Schwab One Personal Accounts) completed and signed (witnessed) by the current custodian
Convert custodial account

When the minor reaches termination age, they may choose to either convert or distribute the account.

Convert account:

  • Former minor must submit a signed Schwab One® Custodial Account Beneficiary Conversion Application. 
  • For custodial IRA, please submit IRA Account Application.
  • For minor Inherited IRA, former minor must submit a signed Inherited IRA Account Application for Individual Beneficiary.

Distribute account:

  • Former minor can request a distribution by submitting a signed
    • Custodial Account Beneficiary Disbursement Form and
    • A copy of his/her driver's license or state identification card.
  • After disbursement, the account is closed.
Change the name of the trust

Include copies of the title page and signature pages of the trust

Add or change trustee with new taxpayer identification number (TIN)Trustees must open a new trust account and internal transfer (journal) the assets to the new account
Add trustee without new TIN
  • A completed, notarized Trustee Change Form
  • Pages of trust that either:
    • Names the successor trustee
    • Validates the successor trustee
Change trustee without new TIN
  • A completed, notarized Trustee Change Form
  • Documentation to support the trustee removal:
    • If removing trustee who is:
      • Deceased—A Certified death certificate Tooltip  (a photocopy is acceptable if certification is clearly visible)
      • Incapacitated—A copy of the trust provision that determines requirements to prove trustee incapacitation and documentation sufficient under the terms of the trust to attest to the trustee’s incapacity. If a trust is silent regarding trustee incapacitation, a letter from a licensed physician
      • Resigned—One of the following:
        • Resigning trustee's certification and signature in Section 3 of Trustee Change Form
        •  Notarized resignation letter signed by resigning trustee
        • Court order accepting resignation of existing trustees and appointing new trustee
    • If changing trustees for a non-personal trust:
      • A completed Trust Account Board Resolution and Authorization form that appoints the individual(s) who will be acting in the trustee capacity on the account on behalf of the board of trustees (will be all or a subset of the board members) (contact your Service team for a copy of this form)
    • If changing trustees for a testamentary trust, either: 
      • A new court order appointing the successor trustee(s), or
      • Copy of the original Decree of Final Distribution (must include trust provisions that identify successor trustee)
      • Certified copy of the will identifying successor trustee
    • If new trustee is an entity, a completed Supplemental Trust Account Application for Entity Trustees form 
    • If the account has recurring distributions or existing SLOAs, contact your Service team to determine requirements
Change entity trustee agent

Entity trustees submit: 

  • Supplemental Trust Account Application for Entity Trustees form to add or remove entity agents who are authorized to act on trustee’s behalf. A separate form is required for each trust account.
  • If adding a new entity agent(s):
    • Account Application Addendum (or Letter of Authorization with same information) with the requirement information for all new agents.
  • There are primary identification requirements for Foreign Residents and Entities who are new agents and foreign residents (regardless of citizenship status).
    • Contact your Service team for assistance.
  • New agents who are Cuban citizens living in the U.S. must submit the following:
    • Social Security number (SSN)
    • U.S. home/legal and mailing addresses
    • Copy of Visa/Permanent Resident Card
  • If removing and replacing all entity agent(s):
    • A copy of one of the following:
      • Corporate Resolution
      • Board Resolution
      • Board Meeting Minutes
  • If entity trustee was incorporated, legally established, or organized outside the United States:
    • A copy of Memorandum and Articles of Association (or equivalent) if not already on file.

Use this process to add or change a role for a personal account.

  1. Complete all applicable documentation required for each type of request.
    • To add an account holder, submit one of the following:
      • Select Update Your Schwab or Schwab One Account to open the Forms & Applications page on Schwab Advisor Center®. Click Select, and then select Open PDF.
      • A letter of authorization (LOA), signed by the existing account holder, agreeing to add the new party to the account. Select Account Application (Schwab One Personal Accounts) to open the Forms & Applications page on Schwab Advisor Center. Click Select, and then select the appropriate option. Existing and additional account holders must sign the form.
    • To add an account holder to an account with an existing power of attorney, select Power of Attorney (Individual POA) to open the Forms & Applications page on Schwab Advisor Center. Click Select, and then select Open PDF. The new account holder must complete and sign the form.
    • If adding an account holder to an account with existing account features, the account holder must complete and sign the appropriate documentation. See How to add features to an account for more information.
    • To remove an account holder without changing the registration, submit an LOA, signed by all existing account holders, agreeing to remove the party from the account.
    • To change the custodian while the current custodian is living, submit a notarized or witnessed letter of authorization that names a new custodian, signed by the resigning custodian for the minor. Select Account Application (Schwab One Personal Accounts) to open the Forms & Applications page on Schwab Advisor Center. Click Select, and then select the appropriate option. The new custodian must complete and sign the form. A court order is required if the minor wishes to remove a living custodian who is unwilling to resign.
    • To change the custodian if the current custodian is deceased or incapacitated, contact your Service team for instructions.
    • To nominate a successor custodian for an existing custodial account, select Account Application (Schwab One Personal Accounts) to open the Forms & Applications page on Schwab Advisor Center. Click Select, and then select Open PDF. Complete Section 11 of the form. The signature of the current custodian must be witnessed, and you must include both your master account number and your client's account number on the form. When complete, submit the entire form for processing.
  2. Print the form(s) and obtain all the appropriate signatures. Send the signed forms and documents to your Service team via a Schwab Advisor Center service request.

Use this process to add or change a role for a living or testamentary trust.

  1. Complete all applicable documentation required for each type of request.
    • To add or change trustees with a new trust taxpayer identification number (TIN), a new account must be opened. Refer to How to open a trust account for the information and process steps required to open a new trust.
    • To add or change trustees with no TIN change, submit the following documentation:
      • Select Trustee Change Form to open the Forms & Applications page on Schwab Advisor Center. Click Select, and then select Open PDF. Complete and submit the notarized form.
  2. Complete new agreements required to maintain existing features and designations. See How to add features to an account for more information.
  3. New recurring transaction LOAs / SLOAs per review with your Service team. 
  4. Print the form(s) and obtain all the appropriate signatures. Send the signed form(s) and documents to your Service team via a Schwab Advisor Center service request.

Once you have submitted all applicable documentation:

  • Your Service team will review and process the request.
  • One of the following will occur:
    • The account holder change will be reflected in the account's profile.
    • The new custodian will replace the former custodian's name on the existing account.
    • The trustee change will be reflected in the account's profile.
    • The successor custodian will be noted. 
  • If you have questions about adding or changing roles for personal or trust accounts, contact your Service team.

To select a form, go to the Forms library on Schwab Advisor Center.

Form: Account Application Addendum
Form: Account Application (Schwab One Personal Accounts)
Form: Account Application (Schwab One Trust Accounts)
Form: Beneficiary Designation Form (IRA Change Beneficiary / IRA Update Beneficiary)
Form: Designated Beneficiary Plan Agreement (Transfer on Death / TOD / DBP)
Form: Power of Attorney (Individual POA)
Form: Supplemental Trust Account Application for Entity Trustees
Form: Trustee Change Form
Form: Update Your Schwab or Schwab One Account
Form: Custodial Account Beneficiary Disbursement Form

What happens if the custodian dies or becomes incapacitated with no successor designated?
If age 14 or over, the minor can name a successor custodian within 60 days after the death or incapacity of the custodian. If the minor is under 14, the conservator of the minor becomes the successor custodian.

A parent of the minor does not automatically qualify as successor custodian, unless previously appointed as successor by the original custodian. State custodial laws vary, so clients should consult with their attorney if they have questions on their custodial account.

Can a minor remove the custodian before the age of termination?
Yes, but only after a formal court proceeding has been filed by the minor, or by a family member or other interested party on behalf of the minor if the minor is under age 14.

Can you add and remove trustees simultaneously?
Yes. You can add and remove trustees at the same time using the Trustee Change Form.

What if there are more trustees than spaces included on the Trustee Change Form?
For additional trustees, make a copy of the trustee pages, fill in the additional trustee information, and attach the extra pages with the form.

How to add features to an account
How to add a power of attorney to an account
How to make account changes to organization accounts
How to open a personal brokerage account
How to open a trust account
How to open an organization brokerage account
Introduction to submitting client documents
Introduction to custodial accounts
Introduction to custodial IRAs