Yes! You can use AI to fill out Beneficiaries — Nonretirement Transfer on Death

This form is exclusively for nonretirement accounts; however, people frequently attempt to use it for retirement accounts (like IRAs) or 529 plans. This mistake occurs due to overlooking the explicit instructions at the top of the form. Submitting this form for an incorrect account type will result in its rejection, leaving the old beneficiary designations in place and causing significant delays.

For joint accounts (JTWROS or TBE), the form explicitly requires signatures from ALL account owners. It's a common oversight for only one owner to sign, especially if they are the one managing the paperwork. An incomplete set of signatures will invalidate the entire form, causing it to be rejected by Fidelity and preventing the beneficiary update from taking effect.

Both the Primary and Contingent beneficiary sections require the share percentages to total exactly 100%. People often make simple calculation errors, or the percentages add up to slightly more or less than 100. This error will cause processing delays or lead to an unintended distribution of assets, as Fidelity may have to apply default rules to correct the discrepancy.

Each individual beneficiary requires a full legal name, Social Security Number (SSN), and Date of Birth (DOB) for proper identification. Fillers often leave these fields blank if the information isn't immediately available, assuming the name is sufficient. Missing this data can make it difficult or impossible for Fidelity to locate and verify the beneficiary upon the owner's death, leading to legal complications and delays in asset distribution.

The 'Per stirpes' option is a legal term that many people don't fully understand; they either check it incorrectly or fail to check it when it reflects their wishes. Checking this box means a deceased beneficiary's share will pass to their direct descendants, which can have profound implications for estate distribution. This misunderstanding can lead to assets being distributed in a way the account owner never intended, potentially disinheriting or including individuals against their wishes.

The form clearly states that it 'cancels any existing beneficiary information.' A common mistake is to use the form only to add a new beneficiary, assuming the old ones will remain. This results in the unintentional removal of all previously designated beneficiaries, completely altering the intended distribution of assets. It is crucial to list every single person or entity you want to be a beneficiary on this new form.

Account owners sometimes list beneficiaries using nicknames, initials, or incomplete names (e.g., 'Grandson Johnny' instead of 'John Michael Smith'). The form requires the full legal name as it appears on a government-issued ID to ensure proper identification. Using an informal name can create significant ambiguity and legal hurdles for the beneficiary when they try to claim the assets, requiring additional proof of identity and delaying the transfer.

People can get confused about the roles of primary and contingent beneficiaries and list the same individuals in both sections. Contingent beneficiaries only inherit if all primary beneficiaries have predeceased the account owner. This redundancy doesn't typically cause a legal issue but indicates a misunderstanding of the form's structure and can complicate the interpretation of the owner's intent.

A signature without a corresponding date can render the form invalid. The date is critical as it establishes the precise moment the beneficiary designation becomes effective, which is essential for revoking prior designations and resolving any potential disputes. Forgetting to write the date is a simple but costly oversight that will lead to the form's rejection. AI-powered tools like Instafill.ai can help prevent this by flagging empty required fields before submission.

The instructions state that to designate different beneficiaries for different accounts, one must use separate copies of the form. A common error is to list multiple account numbers and then try to add notes in the margins to specify which beneficiaries apply to which account. This non-standard method will be rejected, and the designations will not be processed as intended. Since this form is often a non-fillable PDF, a tool like Instafill.ai can convert it into a smart, fillable version, making it easy to create and manage multiple completed copies for different accounts.