Do you have an estate plan for your Robinhood account? With a growing number of clients owning Robinhood, or other various investment app accounts, I am often asked what happens to the account if the owner passes away. Robinhood, for example, currently does NOT allow you to add a beneficiary on your account.
Consequently, when you pass away your holdings at Robinhood would pass to your estate. What does your "estate" mean you might ask? Your estate means what you have directed in your Last Will and Testament. If, like most people, you do not even have a will, then the "estate" means what the laws in your jurisdiction may say as to whom the beneficiaries would be.
Practically speaking when you do not even have a will, you are forcing your loved ones into a time-consuming probate court process to first qualify as the estate administrator before they are granted access to the account. Robinhood does allow you to add a "Trusted Contact Person" on the account for communication purposes, but their website stresses a trusted contact person is NOT a beneficiary. Ensure you at least have a Will to cover your Robinhood, or other investment app accounts if you pass away.