Transfer on Death is a form of account registration which allows individuals to pass the assets in their IBKR account directly to another person or entity upon their death without having to go through probate.  This registration option is solely available to individual accounts held by US residents (no joint or IRA accounts).

To elect this option, eligible account holders will need to do the following:

1. Log in to Client Portal and User menu (head and shoulders icon in the top right corner) followed by Settings. Next select Account Inheritance under the Account Configuration section.

2. You will need to specify your Primary Beneficiaries (from 1 to 6 whose percentage of ownership must total 100%)

3. You may elect to specify your Contingent Beneficiaries (from 1 to 6 whose percentage of ownership must total 100%).  If you do not elect any Contingent Beneficiaries you will need to specify how you wish the interests of any Primary Beneficiaries that predecease you shall be treated (either pass back to the account holder's estate or pass to the remaining Primary Beneficiaries).

4) In the event any Primary or Contingent Beneficiary is a minor you will be required to designate an authorizer signer.

5)  You will then be provided with a link to a pre-populated Transfer on Death Agreement which requires formal signature and notarization.  Instructions are also provided for submitting  the form.  If the account holder is married and living in a community property state, spousal consent is required if the spouse is not named as the primary beneficiary (it is the responsibility of the account holder to make this determination).

6) Once the agreement has been returned and reviewed for approval, the registration will be complete and the account title amended (e.g. Jane Doe, TOD).  Statements will also reflect this new account title.

7) Account holders may remove the TOD request prior to approval or revoke once approved (both via online option).  A new agreement will need to be completed, signed and returned prior to the revocation becoming effective. In order for a revocation request to be effective, it must be received and approved by IBKR prior to the account holder's death.

8) In the event of the death of the account holder, surviving family, heirs, beneficiaries or executors should notify IBKR Client Services via email to:

• estateprocessing@interactivebrokers.com (for US accounts).

Upon receipt of a certified death certificate, IBKR will commence estate processing to determine appropriate distribution of assets.  The process varies based upon account type, jurisdiction and other factors.  Processing instructions will be provided to verified estate administrators, heirs or beneficiaries.

Accounts which have been set up as a 'Cash' type do not have access to the proceeds from the sale of securities until such time the transaction has settled at the clearinghouse and proceeds have been issued to IBKR. Securities settlement generally takes place on the third business day following the sale transaction. Providing access to the funds prior to settlement would constitute a loan, a transaction which is precluded from taking place within this account type. 

The one exception is under the Free-Riding rule. Clients with a cash account can use the proceeds from the sale of a security to purchase a different security under the condition that the second security is held until settlement of the initial sale. If the client sells the second security prior to settlement of the initial trade, they will be in violation of the Free-Riding rule and will be locked for 90 days from utilizing this exception.

Account holders who wish to have access to settled funds prior to the settlement day may do so by electing an account type of 'Margin'.  Under this account type unsettled funds may be used for trading purposes but may not be withdrawn until settlement. Account holders maintaining a 'Cash' account may request an upgrade to a 'Margin' type account by logging in to Client Portal and selecting the Settings > Account Settings menu item and Account Type from the Configuration panel. Upgrade requests are subject to a compliance review to ensure that the account holder maintains the appropriate qualifications.

Why Your TIN May Be Considered as Incorrect

If you are a non-individual, such as a corporation, LLC, partnership, trust or similar entity, your TIN will usually be your Employer Identification Number (EIN). Often a non-individual taxpayer EIN does not match IRS records because you have provided IBKR with a “Doing Business As” name rather than the “Legal Name”. Similarly, the EIN will not match if it is not the number of the actual owner of the account (e.g. you have provided IBKR with the SSN of a partner rather than the EIN of the partnership).

What You Need to Do

You will need to compare the name and EIN per your records (e.g. recent business tax return) with the name and TIN on your IBKR account. Information regarding your IBKR account including a form for updating your information will be made available upon log in to Client Portal. This comparison will require that you take one of the four actions outlined below. If you have any questions regarding your name and/or TIN as recognized by the IRS, please call the IRS Business and Specialty Tax Line at 1-800-829-4933 for assistance.

1. If the name and EIN on your account agree with the name and EIN per your records – Write the Internal Revenue Service Center where you file your income tax return and ask the IRS to send you a Letter 147C. This letter will confirm the name/TIN combination the IRS has on file for you. Once you are in receipt of this letter provide a photocopy to IBKR along with proof of identity and proof of address.

2. If the EIN on your account is different from the EIN through which you submit your business tax returns, but the name is the same - Update your EIN through the form made available upon log in to Client Portal. You do not need to contact the IRS.

3. If the name on your account is different from that through which you submit your business tax returns, but the EIN is the same on both

    a. If the name on your account is correct, contact the IRS to correct the name. Request that the IRS to send you a Letter 147C and once you are in receipt of this letter provide a photocopy to IBKR along with proof of identity and proof of address;

    b. If the name per the IRS records is correct, update your personal information through Client Portal. Provide photocopies of supporting documentation (proof of identity and proof of address). You do not need to contact the IRS.

4. If both the name and EIN on your account are different from the name and EIN through which you submit your business tax returns

    a. If the name and EIN per the IRS records is correct, update your personal information through Client Portal. Provide photocopies of supporting documentation (proof of identity and proof of address). You do not need to contact the IRS;

    b. If the name and TIN on your account is correct, contact the IRS to correct the name. Request that the IRS to send you a Letter 147C and once you are in receipt of this letter provide a photocopy to IBKR along with proof of identity and proof of address.

Due to the generally unsecure nature of commercial email and the volume of SPAM it generates, IB's Customer Service does not support inquiries delivered via email.  Clients who wish to communicate in a formal manner may do so through the secure webticket application available within your Account Management Message Center or through the Inquiry Form located on our website. 

Please note that responses to formal inquiries, regardless of how delivered, will be made available via the secure webticket application. Clients who wish to also receive an email, SMS text message and/or TWS bulletin when a webticket response is generated may do so by setting their message preferences within the Message Center.  Two message settings are made available:

1. Secure - under the secure setting you will receive a notification via email, SMS text message and/or TWS bulletin advising you when a ticket response has been provided.  As this notification will not contain the  contents of the response, you will need to log into your Account Management Message Center to read the message and/or post a follow-up response.

2. Non-Secure - under the non-secure setting you will receive a notification containing the full text of the ticket response within the body of the delivery option you've selected (i.e., email, SMS text message and/or TWS bulletin).  While this doesn't require that you log into your Account Management Message Center to read the message, you will need to do so should you wish to post a follow-up response.

As no preferences are established by default within the Message Center, clients who wish to elect either the secure or non-secure option may do so by logging into Account Management, clicking on the Message Center icon and then the Preferences menu option at the top of the page.  From there you may select any combination of delivery options and, for each delivery option selected, your secure or non-secure setting preference.