Each account should have a Successor, in the case of the Owner’s death.
Naming a death beneficiary/successor is not required, but highly recommended to avoid probate or Uncle Sam taking control if you pass. A Trust may be named as a successor, allowing the trustee to control funds at your direction.
Hilda has accounts for her 3 grandkids, but one of her daughters is not as accountable financially as Hilda would like. Hilda makes her Trust the Successor, so the trustee can responsibly distribute the funds to grandkids when she passes.
No statement or example on this site should be considered a specific recommendation for your personal situation. Investing and tax strategies each carry significant risks. Examples herein may not apply to your situation. Please consult your estate attorney, tax advisor, or financial advisor for personal advice.