Under Directed Beneficiary Arrangements (DBA) the holder of financial assets including bonds, stocks, mutual fund, retirement account etc. can take step for direct transfer of those assets without any Will or trust to the designated beneficiary of his choice upon his death, by simply filling up the requisite form with the custodian securities broker or Mutual Fund Company.
Under the DBA the holder retains full control over the financial assets during his life time and the beneficiaries have no control over the same until the death of the holder or the last surviving owner in case of joint accounts.
The arrangement does not attract any gift tax since the holder of the financial asset is free to change the designated beneficiary and also the asset does not vest in the beneficiary during the lifetime of the holder. The hassles of obtaining probate and setting up of a trust are avoided. | 
