The second problem is if one beneficiary cannot be located or is uncooperative, that will complicate and delay the distribution to the other.
That is a problem with Vanguard and not other firms.
Hawkwin
Realizing that as great as Vanguard funds are, they really suck as a Broker/Dealer.
That said, I would think this aspect would be a matter of law and not a matter of custodian policy.
In another thread, someone also suggested that it could be an issue of state law in some cases.
I know my state and my firm do not have such a restriction. In fact, it can be a common complaint of benes that one received a different amount than the other if they donât complete their paperwork on the same day - One will get 50% on X day and the other will get the remainder on Y day, and of course markets have moved by then.
That can be a great lazy way to double or triple the paperwork everybody has to do. My mother did that. She wrote âAll My Surviving Children*â on one of her life insurance forms. It would have been a lot better if she just listed everybodyâs name and details on a list attached to the form. (Thereâs never enough room on the actual forms.) So each of the 5 of us had to answer about who all the other children were, and include a copy of her obituary from the newspaper, as to who survived her and who predeceased her. And our 2nd sister was notoriously slow at doing anything needed, regarding either of our parentsâ estates.
Bill
*-and if you think that sounds like the title of a soap opera, youâre right.
That is a problem with Vanguard and not other firms.
We had this same issue with TD Ameritrade (taxable account) and with Fidelity (401K). None of our accounts were funded until all four of us correctly filled out forms and opened accounts. We received the exact same amounts at the exact same time.
Liquidating the TD Ameritrade stock account upon receipt of the account would have resulted in significant capital gains tax due to the months it took for the account to be funded. (a first world problem for which I am grateful.) There also could have been a significant loss in the account from my fatherâs date of death to the date it was funded.
Perhaps this is specific to the state of PA. We had various waivers to sign, acknowledging that we were responsible for paying Inheritance Tax.
Maybe this is not a concern for the OP? The estate attorney should know.
Maybe this is not a concern for the OP? The estate attorney should know. - HH
Yes, a HUGE concern. Until I can come up with something better, I have changed my Vanguard Accounts (I have three) to specify my daughter as the only beneficiary.
I will ask the estate attorney. He should know if it is a matter of Texas state law but if it is simply a Vanguard policy, I wouldnât expect him to know about every potential custodians policy.
BHM,
As I read your last post, your comment specifying your daughter as the only beneficiary sticks out. If your daughter is the sole beneficiary of your estate, will she (or your son) run into gift regulation limitations and issues if she wants to gift funds to him?
Of course, there are ways around the regulations by keeping the gifts small, etc., but - unintended consequence⌠Just throwing it out there.
PW
Again, Iâll recommend a new book written by one of the top probate lawyers in the country, Death is No Excuse. It is an excellent read and is packed with some common sense advice.
His website has some excerpts: https://davidbakerbooks.com/death-is-no-excuse
Mike