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Schwab Launches Online Inheritance Hub

By Janet Levaux

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Charles Schwab has rolled out a digital Inheritance Center to help retail investor clients manage tasks online after the death of a loved one. This includes activities like opening accounts, submitting forms and receiving status updates. 

Why It Matters: Schwab is one of the largest asset managers and custodians with $8 trillion on its platforms as of June 30. Investor Services’ accounts included $4.3 trillion, while Advisor Services’ accounts had $3.7 trillion. 

What to Know:  The Inheritance Center is available now to “almost half of the total inheritor population,” Schwab says, meaning beneficiaries who need to open individual retirement accounts and/or brokerage accounts in order to receive their assets from Schwab clients. “The online hub will eventually be available to all inheritors,” it stated in a news release.

The center aims to help investors have an easier experience when opening IRAs and brokerage accounts to receive inherited assets, the firm says. It also provides access to dedicated estate professionals for guidance.

The Inheritance Center includes:

  • A personalized to-do list to follow and complete in order to receive inheritance;
  • Real-time status updates including emails and online notifications on the status of forms, transfers and other documents;
  • Digital document uploading from desktops, laptops or phones; and 
  • Resources like FAQs, financial inventory checklists and information about distribution options.

Looking Deeper: Rules affecting inherited IRAs and their required minimum distributions are complex. The Secure 2.0 Act, for instance, raised the age at which RMDs must start to 73 from 72, starting this year. Also, the Internal Revenue Service recently told IRA beneficiaries subject to the 10-year withdrawal rule that they don’t need to take RMDs in 2023 from accounts inherited in 2020 or later.

(Credit: Bloomberg)

Janet Levaux

@Think_JanetL

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