my dad passed - Vanguard questions

[steady saver]

It wasn't easy for me at all with Vanguard when my husband died this past August. It took me a long time to get my husband's account settled with them.

We both had 403bs with Vanguard, and trying to get my husband's account in my name as beneficiary and then get the RMD situation settled was a long, difficult process with a lot of hours spent on the phone. The issue that confused them seemed to be that he was already taking RMDs and I won't have to for three years.

I learned from experience to call again a couple of days after one person had told me what to do, because the next person I talked to gave me totally different and mostly conflicting information. It took literally two months of phone calls. I wrote down every person's name that I talked to, and the date and time, and all the information each gave, so I could reference it to the next person when they looked it up on my file.

I hope you have a better experience than I did.

Goodness, I'm sorry you had to go through all of that! What nonsense!

 

[steady saver]

It's my understanding from posters over on Bogleheads (who seem to know what they are talking about) that with recent legislation, the remaining RMD can now be taken any time before the end of 2025 (end of year following the year of passing).

Here's an article which says the same thing:

RMD Regulations’ Year-of-Death Rules Yield Both Answers and Questions — Ascensus

IRS final required minimum distribution (RMD) regulations were published on July 19, 2024, more than four years after enactment of relevant statutory changes in the SECURE Act of 2019. Especially noteworthy are provisions affecting those who inherit an IRA whose owner had not yet satisfied the RMD f

thelink.ascensus.com

One of the things my dad did this past year was to take out his RMD twice. He was just so confused and was so stubborn about letting anyone help. It is a miracle he didn't do anyting really unfortunate before he fell and was restricted from all of his passwords and iPad. The weird expenses we're finding now...

 

[Texas Proud]

OHH, do you have any paper savings bonds? My mom had them with benes named... had to distribute to 12 different people.. also supplied them with a certified death certificate as it is needed to cash them in...

I will be cashing one (sending to the gvmt) early next month... and sending a death certificate... I ordered 30... it is easier to pay the IMO small fee now and have plenty than to try and get some later..

 

[MissMolly]

Thank you, yes, I'm confused about that but will look into that right away. I remember when I looked when I was there earlier in the month that the Vanguard account was under my dad's name, but then listed was an IRA "account" for him in his name and one for her under her name. But all under the same log in, if that makes sense.

Oh, that makes sense to me now. Your dad apparently linked the two accounts together so he can "see" everything under a single login. I have the same setup at Vanguard where I can see my husband's accounts with just my login. But if that account has your mom's name, it's already hers and is actually separate from his accounts..

 

[atmsmshr]

Condolences to your family.

Very good advice already offered - I have been through this with Vanguard.

One advice item not seen regarding timely payments: If your mother is on a Medicaid supplement plan (like plan G) make sure that the monthly/quarterly premiums are automatically paid. Getting removed from a plan may mean additional underwriting and higher premiums. Same for any LTC insurance policy. (I am on insurance notification list if this payment is missed.)

 

[steady saver]

OHH, do you have any paper savings bonds? My mom had them with benes named... had to distribute to 12 different people.. also supplied them with a certified death certificate as it is needed to cash them in...

I will be cashing one (sending to the gvmt) early next month... and sending a death certificate... I ordered 30... it is easier to pay the IMO small fee now and have plenty than to try and get some later..

No paper bonds (ha, well that we know of). When he was lucid, he'd gone over everything with me a few years ago so if I can get my hands on things, I think I'll be able to find what I need.

 

[steady saver]

Oh, that makes sense to me now. Your dad apparently linked the two accounts together so he can "see" everything under a single login. I have the same setup at Vanguard where I can see my husband's accounts with just my login. But if that account has your mom's name, it's already hers and is actually separate from his accounts..

Thank you. That makes sense. So it will just be my dad's IRA that we'll be switching over. Thanks!

 

[steady saver]

Condolences to your family.

Very good advice already offered - I have been through this with Vanguard.

One advice item not seen regarding timely payments: If your mother is on a Medicaid supplement plan (like plan G) make sure that the monthly/quarterly premiums are automatically paid. Getting removed from a plan may mean additional underwriting and higher premiums. Same for any LTC insurance policy. (I am on insurance notification list if this payment is missed.)

Those are automatically paid but, gosh, thanks for noticing that. If they hadn't been and I'd missed that it would've been a hassle.

 

[SecondCor521]

It's a minor detail, but everyone always says to get a bunch of death certificates.

You might not need to.

I looked into it for my state, and they're about $15 each, and you can order them any time.

The only reason I can see to order extra is to avoid the delay in waiting for them to arrive so you can use them. If you're working through things slowly or in priority order, you'll be able to see the situation coming.

Many (most?) places will return the original after you send it.

Many places don't need the original, just a scanned copy.

We ordered 10 for my Mom when she passed; I think we used three (net) and I still have the other seven in a folder somewhere.

If you're organized and know his situation, you can probably count up how many you will need. Maybe order a few extra, but not 10 extra.

 

[Stormy Kromer]

Sorry about your dad. Even at 94 its hard.

 

[frayne]

Thank you frayne. That is all so very helpful. I need to look into their pension information - I need to be there in person to go through his desk and files but I believe it is all pretty accessible. Is that something that I need to do quickly? I may have to try to help her do that from Hawaii.
And thank you for the congrats for my son. It was such an exciting day for him and I was so happy that he asked his dad and I to be there with him at the closing. We're so happy for him. The cycle of life continues...

I really don't know how quickly, think only you can answer that question.

 

[SecondCor521]

The pension may hear about his passing via Social Security and then take action themselves either to stop the payments, or reduce them to the survivor benefit amount if any.

Hopefully what they do, if anything, is correct. If not, you can probably sort it out later, which may involve repaying some of the payments. Some hassle, but probably not insurmountable later.

Hopefully your Mom is not dependent on the pension payments. If so, and they stop payments (correctly or not), then you might have a cash flow problem on your hands to keep her bills paid.

 

[RetMD21]

It's a minor detail, but everyone always says to get a bunch of death certificates.

You might not need to.

I looked into it for my state, and they're about $15 each, and you can order them any time.

The only reason I can see to order extra is to avoid the delay in waiting for them to arrive so you can use them. If you're working through things slowly or in priority order, you'll be able to see the situation coming.

Many (most?) places will return the original after you send it.

Many places don't need the original, just a scanned copy.

We ordered 10 for my Mom when she passed; I think we used three (net) and I still have the other seven in a folder somewhere.

If you're organized and know his situation, you can probably count up how many you will need. Maybe order a few extra, but not 10 extra.

I dealt with 2 deaths of older folks without real estate and actually found that I only used one certificate each.

 

[Texas Proud]

I think this was mentioned but go look to see if any accounts are being held by any state!!!

I found one of my mom that took me a long time to get but it was worth it... the last date the company had when they sent the money in was 1941... hard to get info from then...

 

[MdaPetralia]

Many places don't need the original, just a scanned copy.

+1

 

[steady saver]

Thank you all. My sister has dealt with so many details with his death, service, etc.
Another sister has notified pension and healthcare.

I will deal with the rest when i get back. Tried to do some, but all of dad's stubborness about passwords and changing them, getting confused, losing phone (and therefore ability to access sites) has reared its ugly head.

It just reinforces to me what I will NOT be doing to my sons and how streamlined I hope our passing will be for them.

Again, thank you for your advice and kind words.