So now that I can't have a TOD on my brokerage account....
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I don't have a joint account at vanguard, it's my IRA that was converted from my work 401K. Next time I am on the site I will check to see if my beneficiaries are still there. As far as I know they can be added online. If not, I will report back. The only gripe I have about Vanguard lately is their settlement account offers less than 1/4% interest. It's absurd. Even banks offer 4/10% interest.
Quote:
Originally Posted by mathjak107
Be careful at vanguard with joint accounts
They removed all beneficiaries from joint accounts and never notified most investors ….in the event of a common death in an accident we wanted beneficiaries on the account .
Vanguard sucks .
Everything they get in to they try to promote on to you .
They said their reasoning is that trusts are recommended and they just happen to have a trust dept that can help you .
Bull , I pulled my money out and done with them …
My fidelity rep couldn’t believe they did that , she had to call and confirm that is what they did.
All our joint accounts have beneficiaries…
What a self serving company vanguard has become , a side from their awful customer service
I don't have a joint account at vanguard, it's my IRA that was converted from my work 401K. Next time I am on the site I will check to see if my beneficiaries are still there. As far as I know they can be added online. If not, I will report back. The only gripe I have about Vanguard lately is their settlement account offers less than 1/4% interest. It's absurd. Even banks offer 4/10% interest.
Retirement accounts are fine , they are not joint accounts .
It is all joint accounts vanguard pulled a shrewdy on
Thank you for your email regarding Transfer on Death (TOD).
Vanguard has decided that, in most cases, a TOD plan offers minimal
benefits on joint accounts. Beneficiaries on joint accounts are used to
cover the rare possibility that all the joint account owners will die
simultaneously. Such provisions are beyond the scope of Vanguard's TOD
plan.
I have reviewed this with our management, specifically surrounding the
possibility of simultaneous death of joint owners. While the TOD plan could
allow for the transfer of ownership rights in the unlikely event of
simultaneous death, it may not do so in a tax-efficient manner and may
limit the heirs' options.
Other estate-planning tools, like wills or trusts, allow investors to
utilize strategies that the TOD plan does not have room for, and they could
increase the amounts that heirs actually receive. Additionally, relying on
TOD plans increases the possibility of heirs being responsible for final
expenses, debts and taxes without adequate resources left in the estate to
cover such costs.
As you may know, a Vanguard TOD plan overrides the terms of a client's
trust, will, or other estate planning documents. However, community
property laws outline rules for ownership rights, and these laws remain
intact. This makes it more likely for assets to be transferred to an
inappropriate party and for disputes among beneficiaries. Since our TOD
plan is a Pennsylvania contract, it is interpreted under Pennsylvania law.
The laws of your state of residence may include more favorable provisions.
If you want to ensure that your assets will transfer to listed
beneficiaries for a joint account, we encourage you to contact an estate
planning professional. The estate planning professional will be able to
advise you on what steps you can take to ensure that the assets in your
joint account are transferred to the appropriate beneficiaries.
We don't have enough assets to warrant setting up a trust.
There may not be anything left at all when the times comes, but still. We want whatever there is to go where we designated it. WTH, Texas.
You need to have a consultation with a Texas estate planning attorney. You maybe understanding it all wrong. I don't think it changes where you want the account to go, just that it doesn't avoid probate but a estate planning attorney would know for sure. Might be worth a consultation fee to ease your mind.
They probably should notify account owners that the form provided is for their convenience, but the owners need to consult their state law to see if their state allows TOD for taxable security accounts. It sounds like that's all they're doing, is providing the form for you and keeping it in their records, but not providing a legal opinion as to whether it's actually valid in your state.
The bank who set it up, IS in Texas where my address is. They should know their own laws!
The bank who set it up, IS in Texas where my address is. They should know their own laws!
So the bank is also your broker? You trade securities through them, IOW?
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