Brokerage TOD Beneficiaries?

[SJhawkins]

We have a Joint Brokerage Account and added 2 Beneficiaries, so far so good. The new statement now list the account with TOD, ok.

I called the brokerage house looking for "something" that I print and toss in the death book about who are the listed beneficiaries, they tell me that cant be done.

I verified over the phone and they have the correct beneficiaries, I also have the original fax, that's the best I can do.

Does the above sound right?

I guess its one step better then our Vanguard Joint Account that adding Beneficiaries is not allowed at all!

Thanks for the input,

 

[OldShooter]

If I were them I wouldn't do it. The problem is that you can change the beneficiaries at any time and someone contesting the current designation could show up with the piece of paper and cause a stink for them. If you want something in the death book, why not just print and date a screen shot of the brokerage designation page?

 

[PaunchyPirate]

If you pretend to go into your account to change one of the beneficiaries, does it show your current settings? If so, I would just capture a screenshot of the screen and put that in your book.

 

[Ncc1701]

This is not right, both Fidelity and Schwab put bene info on the website and will gladly give you written confirmation. They also automatically send you a letter with the bene info when the account is first opened and upon making any changes.

 

[SJhawkins]

If I were them I wouldn't do it. The problem is that you can change the beneficiaries at any time and someone contesting the current designation could show up with the piece of paper and cause a stink for them. If you want something in the death book, why not just print and date a screen shot of the brokerage designation page?

I would if I could but in no place can I find it on a screen to take a screen shot, that would be fine too. BTW it's a old Wellstrade account.

ETA, forgot to add, it maybe listed someplace but I don't see it, if someone here has the same account and can point me to it that would be great

 

[SJhawkins]

If you pretend to go into your account to change one of the beneficiaries, does it show your current settings? If so, I would just capture a screenshot of the screen and put that in your book.

If only one could change it one the web! It's by fax or digital sign the documents only. The digital sign I'm sure would be fine but did want another 3rd party/program to mess with, so just did it old school.

On an IRA you can see the bennies but brokerage it's a no go, so weird. From few accounts I have dealt with taxable brokerage accounts have had some different issues with this.

 

[SJhawkins]

Maybe Im being to over worried, my fear is 40 years from now I would like to have something for our recipients to have in hand to follow.

I have all the accounts written down and where everything is at so that should make it simple. I have been on the other end searching for a deceased assets, it can be a challenge

 

[target2019]

I would put the faxed page into my blue binder and call it a day.

 

[The Cosmic Avenger]

I would put the faxed page into my blue binder and call it a day.

Yeah, back when I actually had to occasionally fax documents, I could get a "fax report" from the machine with the time, date, phone number, and # of pages sent; I'd put that as a cover sheet to the form and use that as documentation of the update. There's no way to document that it hasn't changed since, but then there really is no way to do that with paper only. You have to assume whoever generates the documents will discard and replace the document if it's ever superceded. I'm sure many companies have pages of procedures on this very topic.

 

[jazz4cash]

If I were them I wouldn't do it. The problem is that you can change the beneficiaries at any time and someone contesting the current designation could show up with the piece of paper and cause a stink for them. If you want something in the death book, why not just print and date a screen shot of the brokerage designation page?

Why is it a problem as long as the broker can substantiate a legitimately designated beneficiary. They may need to do this anyway in the event of a challenge. I’ve had problems with banks and brokers not designating beneficiaries and/or making it very difficult. I don’t keep much money at those places. They should be legally obligated to provide beneficiary designations within reason.

 

[OldShooter]

Why is it a problem as long as the broker can substantiate a legitimately designated beneficiary. ...

Because they may have to do it in court at some expense. The problem with the OP's good idea of documenting the POD is that whoever gets that documentation has no way of knowing whether the POD instructions have been subsequently modified, so they have to go to the brokerage anyway. Someone who was on the POD contained in the OP's book but is then told that they were subsequently "disinherited" could easily try to raise a legal stink. Low probability in most cases but not out of the question. Unlike a trust, where the trustee charges the trust for all expenses, the brokerage house would simply be out of pocket any legal costs to defend.

DW was a megabank SVP and business unit manager in Investments and Trust. She had quite funny stories about occasional old people whose hobby was frequently changing beneficiaries depending on which child or grandchild they were currently mad at. So that kind of thing happens.

 

[SJhawkins]

Thanks for the reply's all. I will keep plowing ahead. The last person standing will have to run thru it one more time anyway