[Death in family - First steps to pay beneficiaries?]

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
Post Reply
User avatar
Topic Author
1030danielle
Posts: 56
Joined: Fri Jul 15, 2016 12:25 pm
Location: South Florida

[Death in family - First steps to pay beneficiaries?]

Post by 1030danielle » Sun May 19, 2019 7:44 am

[Moved into a stand-alone topic from: Father passed - First steps to taking over finances? --admin LadyGeek]

Lots of good information in this post.
Somewhat related question: debts, taxes etc must be paid before beneficiaries receive money. Is it safe to “assume” vanguard won’t pay beneficiaries until I, as executor, tell vanguard it’s ok to do so?
Three-funder with a tech tilt.

Gill
Posts: 5501
Joined: Sun Mar 04, 2007 8:38 pm
Location: Florida

Re: Father passed - First steps to taking over finances?

Post by Gill » Sun May 19, 2019 8:15 am

1030danielle wrote:
Sun May 19, 2019 7:44 am
Lots of good information in this post.
Somewhat related question: debts, taxes etc must be paid before beneficiaries receive money. Is it safe to “assume” vanguard won’t pay beneficiaries until I, as executor, tell vanguard it’s ok to do so?
No, absolutely not. Vanguard will pay beneficiaries as soon as they have proof of death. You have no authority to direct otherwise.
Gill
Cost basis is redundant. One has a basis in an investment | One advises and gives advice | One should follow the principle of investing one's principal

quantAndHold
Posts: 3438
Joined: Thu Sep 17, 2015 10:39 pm

Re: Father passed - First steps to taking over finances?

Post by quantAndHold » Sun May 19, 2019 9:18 am

Gill wrote:
Sun May 19, 2019 8:15 am
1030danielle wrote:
Sun May 19, 2019 7:44 am
Lots of good information in this post.
Somewhat related question: debts, taxes etc must be paid before beneficiaries receive money. Is it safe to “assume” vanguard won’t pay beneficiaries until I, as executor, tell vanguard it’s ok to do so?
No, absolutely not. Vanguard will pay beneficiaries as soon as they have proof of death. You have no authority to direct otherwise.
Gill
Depends. If the Vanguard account has a beneficiary designated, then the Vanguard account is distributed outside of probate. The beneficiary contacts Vanguard with a death certificate, and Vanguard transfers the account directly to them.

If the account doesn’t have a beneficiary designated, then it’s handled through probate. The executor would provide instructions to Vanguard about what to do with the account.

Gill
Posts: 5501
Joined: Sun Mar 04, 2007 8:38 pm
Location: Florida

Re: Father passed - First steps to taking over finances?

Post by Gill » Sun May 19, 2019 9:30 am

quantAndHold wrote:
Sun May 19, 2019 9:18 am
Gill wrote:
Sun May 19, 2019 8:15 am
1030danielle wrote:
Sun May 19, 2019 7:44 am
Lots of good information in this post.
Somewhat related question: debts, taxes etc must be paid before beneficiaries receive money. Is it safe to “assume” vanguard won’t pay beneficiaries until I, as executor, tell vanguard it’s ok to do so?
No, absolutely not. Vanguard will pay beneficiaries as soon as they have proof of death. You have no authority to direct otherwise.
Gill
Depends. If the Vanguard account has a beneficiary designated, then the Vanguard account is distributed outside of probate. The beneficiary contacts Vanguard with a death certificate, and Vanguard transfers the account directly to them.

If the account doesn’t have a beneficiary designated, then it’s handled through probate. The executor would provide instructions to Vanguard about what to do with the account.
Isn’t that what I said in fewer words? OP wasn’t talking about assets with no beneficiary designation.
Gill
Cost basis is redundant. One has a basis in an investment | One advises and gives advice | One should follow the principle of investing one's principal

22twain
Posts: 1953
Joined: Thu May 10, 2012 5:42 pm

Re: Father passed - First steps to taking over finances?

Post by 22twain » Sun May 19, 2019 12:36 pm

1030danielle wrote:
Sun May 19, 2019 7:44 am
debts, taxes etc must be paid before beneficiaries receive money. Is it safe to “assume” vanguard won’t pay beneficiaries until I, as executor, tell vanguard it’s ok to do so?
Are you perhaps confusing beneficiaries specified by a will with beneficiaries specified by TOD/POD designations in specific accounts (CDs, mutual funds, brokerage, etc.)? As others have noted, the second category bypasses the probate process and the estate's executor is not involved in these.
My investing princiPLEs do not include absolutely preserving princiPAL.

LFS1234
Posts: 103
Joined: Fri Feb 08, 2019 4:13 am

Re: Father passed - First steps to taking over finances?

Post by LFS1234 » Sun May 19, 2019 12:55 pm

Please note that 1030danielle, who posted today (2019), is not the original poster. The OP posted in 2016, and all responses prior to today's were posted in 2016. 1030danielle's situation is not necessarily identical to that of the OP.

User avatar
LadyGeek
Site Admin
Posts: 55793
Joined: Sat Dec 20, 2008 5:34 pm
Location: Philadelphia
Contact:

Re: [Death in family - First steps to pay beneficiaries?]

Post by LadyGeek » Sun May 19, 2019 3:04 pm

^^^ Thanks. I split 1030danielle's question into a new thread.

1030danielle - If you want to change the thread title further, just edit the Subject: line in Post #1.

(To get a moderator's attention sooner, please report the post using the ! in the top-right corner of the post and explain what's wrong. Thanks to the member who did just that.)
Wiki To some, the glass is half full. To others, the glass is half empty. To an engineer, it's twice the size it needs to be.

Post Reply