I'm 23 and im with Vanguard. Should I get a transfer on death plan?

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Topic Author
Randyman
Posts: 265
Joined: Mon Nov 06, 2017 8:28 pm

I'm 23 and im with Vanguard. Should I get a transfer on death plan?

Post by Randyman »

Hello all, my mom told me I should have a plan incase i die so all of my funds can go to her and thats fine. i was wondering if anyone here has a transfer on death plan with someone. Is it difficult to do? Can I do it right from the vanguard website or do I need to mail it in? I have the link to the PDF and it says I can print it out and so on.

Is there any negative consequences to filling out the form? Will i be on a list or will I be in a bad tax position or something? Sorry all im new to this.
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KlingKlang
Posts: 1090
Joined: Wed Oct 16, 2013 3:26 pm

Re: I'm 23 and im with Vanguard. Should I get a transfer on death plan?

Post by KlingKlang »

https://www.vanguard.com/pdf/bdbp.pdf?2210039149

You should have no problems designating your mother as your beneficiary for both your Vanguard retirement accounts and after tax accounts. There will be no negative tax consequences for you (other than the fact that you will be dead).

On the other hand there is no reason why all of your assets have to pass to your mother (if she is a gr**d* b*tch). Do you have a father, siblings, other relatives, religious institution, or educational institution that you would rather get your assets if you die?
Topic Author
Randyman
Posts: 265
Joined: Mon Nov 06, 2017 8:28 pm

Re: I'm 23 and im with Vanguard. Should I get a transfer on death plan?

Post by Randyman »

KlingKlang wrote: Mon Nov 20, 2017 10:07 am https://www.vanguard.com/pdf/bdbp.pdf?2210039149

You should have no problems designating your mother as your beneficiary for both your Vanguard retirement accounts and after tax accounts. There will be no negative tax consequences for you (other than the fact that you will be dead).

On the other hand there is no reason why all of your assets have to pass to your mother (if she is a gr**d* b*tch). Do you have a father, siblings, other relatives, religious institution, or educational institution that you would rather get your assets if you die?
She is all I have, everyone else in my family are dead, so i just didnt want my money to go to who knows where. Id rather it go to her. Thanks for the input!
ZWorkLess
Posts: 425
Joined: Thu May 04, 2017 8:13 pm

Re: I'm 23 and im with Vanguard. Should I get a transfer on death plan?

Post by ZWorkLess »

If your mom is financially dependent on you (???!!!#%!!>?), and you're OK with this, then you might want to put her as your beneficiary on accounts and you might even want to consider a (cheap for you) term life insurance policy on yourself for her benefit.

If she's not dependent on you, but simply your only family (for now), then whatever you do now, just be sure to reevaluate it and update it when you get married and/or have a child. A beneficiary designation overrides most other aspects of law and custom, so if you forget to change it, your kids and/or spouse would likely get shortchanged.
Topic Author
Randyman
Posts: 265
Joined: Mon Nov 06, 2017 8:28 pm

Re: I'm 23 and im with Vanguard. Should I get a transfer on death plan?

Post by Randyman »

ZWorkLess wrote: Mon Nov 20, 2017 10:17 am If your mom is financially dependent on you (???!!!#%!!>?), and you're OK with this, then you might want to put her as your beneficiary on accounts and you might even want to consider a (cheap for you) term life insurance policy on yourself for her benefit.

If she's not dependent on you, but simply your only family (for now), then whatever you do now, just be sure to reevaluate it and update it when you get married and/or have a child. A beneficiary designation overrides most other aspects of law and custom, so if you forget to change it, your kids and/or spouse would likely get shortchanged.
Good point, thank you.
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