Capital One 360 no beneficiary option

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Bhairston2018
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Joined: Wed Feb 21, 2018 3:23 pm

Capital One 360 no beneficiary option

Post by Bhairston2018 » Wed Apr 11, 2018 3:33 pm

Hi guys,

26 - single
Siblings and cousins
Parents well off
Don’t have a will
Live in Ohio

I asked Capital One about listing beneficiaries on my account and was told they currently don’t offer a beneficiary option on accounts. I don’t have a joint account with anyone.

This would ultimately force the account to go through probate court, which to my understanding, they will take a % (estimated up to 5% ) just because.

Thoughts on moving money to an account that offers a beneficiary where I can include my siblings or cousins? Or moving to vanguard Federal MM fund?

Just not trying to have my money stuck in a certain bank should something happen to me.

Any suggestions will be greatly appreciated

sport
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Location: Cleveland, OH

Re: Capital One 360 no beneficiary option

Post by sport » Wed Apr 11, 2018 3:34 pm

Instead of using the word "beneficiary", ask them about TOD (transfer on death) or POD (payable on death) specification on your account.

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Mlm
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Re: Capital One 360 no beneficiary option

Post by Mlm » Wed Apr 11, 2018 3:37 pm

This is why I closed my Capital One 360 and went to Ally Bank.

bsteiner
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Re: Capital One 360 no beneficiary option

Post by bsteiner » Wed Apr 11, 2018 3:42 pm

Bhairston2018 wrote:
Wed Apr 11, 2018 3:33 pm
Hi guys,

26 - single
Siblings and cousins
Parents well off
Don’t have a will
Live in Ohio

I asked Capital One about listing beneficiaries on my account and was told they currently don’t offer a beneficiary option on accounts. I don’t have a joint account with anyone.

This would ultimately force the account to go through probate court, which to my understanding, they will take a % (estimated up to 5% ) just because.
...
No state's probate court charges anywhere near 5%. Delaware is the highest one I know of at 1.75%. Florida charges about $400 regardless of the value of the estate. New York has a sliding scale with a maximum of $1,250. New Jersey charges by the page (it's usually a few hundred dollars) rather than by the value of the estate, so you could save money there by single spacing your Will.

Executors are entitled to be paid, but presumably your parents or siblings wouldn't take commissions (fees) for acting as executor(s).

The law firm handling your estate will also get paid, but the amount of work involved (and hence the legal fees) will probably be about the same either way, since you probate the Will, not the assets.

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sperry8
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Re: Capital One 360 no beneficiary option

Post by sperry8 » Wed Apr 11, 2018 3:46 pm

Mlm wrote:
Wed Apr 11, 2018 3:37 pm
This is why I closed my Capital One 360 and went to Ally Bank.
Agreed. I tend to keep low amounts in online banks who don't allow beneficiaries to be added. In fact, Popular Direct, the nations top rate leader at 2% at the moment requires SS#s... which is a pain. I am making an exception however since they are the rate leader. Otherwise they'd be just like Capital One 360 and have $0 of my dollars.
Humbling BH contest results: 2017: #516 of 647 | 2016: #121 of 610 | 2015: #18 of 552 | 2014: #225 of 503 | 2013: #383 of 433 | 2012: #366 of 410 | 2011: #113 of 369 | 2010: #53 of 282

Bhairston2018
Posts: 57
Joined: Wed Feb 21, 2018 3:23 pm

Re: Capital One 360 no beneficiary option

Post by Bhairston2018 » Wed Apr 11, 2018 3:59 pm

Okay that makes sense my mom is currently dealing with probate court with things left behind from my grandmother and she said 5% but she was probably including legal fees in that estimate
bsteiner wrote:
Wed Apr 11, 2018 3:42 pm
Bhairston2018 wrote:
Wed Apr 11, 2018 3:33 pm
Hi guys,

26 - single
Siblings and cousins
Parents well off
Don’t have a will
Live in Ohio

I asked Capital One about listing beneficiaries on my account and was told they currently don’t offer a beneficiary option on accounts. I don’t have a joint account with anyone.

This would ultimately force the account to go through probate court, which to my understanding, they will take a % (estimated up to 5% ) just because.
...
No state's probate court charges anywhere near 5%. Delaware is the highest one I know of at 1.75%. Florida charges about $400 regardless of the value of the estate. New York has a sliding scale with a maximum of $1,250. New Jersey charges by the page (it's usually a few hundred dollars) rather than by the value of the estate, so you could save money there by single spacing your Will.

Executors are entitled to be paid, but presumably your parents or siblings wouldn't take commissions (fees) for acting as executor(s).

The law firm handling your estate will also get paid, but the amount of work involved (and hence the legal fees) will probably be about the same either way, since you probate the Will, not the assets.

focusedonwhatmatters
Posts: 102
Joined: Wed Nov 29, 2017 11:49 am

Re: Capital One 360 no beneficiary option

Post by focusedonwhatmatters » Wed Apr 11, 2018 6:43 pm

I opened a Capital One 360 account for a promotional bonus, only to be told there was no way to designate a beneficiary and that if I died the account would be distributed as per my state laws. I waited the required time for the promo money to settle, then closed the account.

SrGrumpy
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Re: Capital One 360 no beneficiary option

Post by SrGrumpy » Wed Apr 11, 2018 9:14 pm

If you're talking about Capital One brokerage, they are in the process of shifting everything over to eTrade, which does offer TOD - though I think it involves mailing in paper documents. I will eventually move my expanded eTrade brokerage accounts over to Ally - esp. as my wife/beneficiary also has an Ally account.

Capital One's intransigence on this simple yet important matter is vexing.

Bhairston2018
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Joined: Wed Feb 21, 2018 3:23 pm

Re: Capital One 360 no beneficiary option

Post by Bhairston2018 » Thu Apr 12, 2018 5:18 am

I was talking about a regular savings account but thanks for the suggestions. I think I am going to move 2 months of my emergency fund to my credit union and then the rest to either the vanguard federal MM or Prime MM

Sfynx
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Re: Capital One 360 no beneficiary option

Post by Sfynx » Thu Apr 12, 2018 2:51 pm

as the above user mentioned ask about tod (transfer on death) or POD (payable on death) to not have any of these features would greatly surprise me, and most likely would not hold my funds there. (which why would you? scwhab has the free worldwide checking debit card and there are better online banks for higher yield MMS)

rarnold2000
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Joined: Fri May 04, 2018 11:25 pm

Re: Capital One 360 no beneficiary option

Post by rarnold2000 » Wed Jun 13, 2018 6:40 pm

The last comment on Cap One 360's refusal to allow beneficiary accounts was in April of 2018. It is now June, 2018 and that bank still does not allow such accounts. To the individual who wrote that he would be surprised if Cap 1 360 did not allow Totten Trusts (POD or TOD) accounts, get ready for a surprise. The bank does not allow these accounts either. Cap 1 360 told me they are considering allowing such accounts but do not do so now. Don't hold your breath; the bank has been saying this for years. I have a rather substantial money market account with Cap 1 360 which I am about to close for this reason. I find it ridiculous that the bank has dragged it's feet for so long. And it is a shame because I am otherwise very satisfied with all my Cap 1 accounts. One other note, avoiding probate with a beneficiary or Totten Trust account not only saves money; it saves time. It allows your beneficiaries almost immediate access to, and ownership of, the funds by merely providing their identification and your death certificate.

Bhairston2018
Posts: 57
Joined: Wed Feb 21, 2018 3:23 pm

Re: Capital One 360 no beneficiary option

Post by Bhairston2018 » Thu Jun 14, 2018 12:23 pm

I’ve had cap 1 for about 2 years now, I asked over a year ago and they said they are reviewing the possibility. I closed out my accounts shortly after this thread and my credit card is the only thing with cap 1 now. Looking into Ally or Discover. :sharebeer

RetiredInPhx
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Re: Capital One 360 no beneficiary option

Post by RetiredInPhx » Tue Jul 03, 2018 1:54 pm

I found this forum while Googling how to set up beneficiaries for my recently opened Cap One 360 MM account. I called Cap One today (July 3, 2018) and was told that indeed I cannot presently designate beneficiaries for my 360 acct, even though I was able to do so for my Cap One High Yield MM account last December. The rep told me it is a "high priority" feature they are working on, and by the "end of the summer" this capability should be available online. I pressed about being able to do it offline, via the PDF form I filled out and mailed in when designating beneficiaries for my High Yield MM acct. I was told that they aren't accepting the PDF form for 360 accounts because it "wasn't valid in all states" and they are working to develop the online option to cover legal requirements across all states. I asked whether "end of summer" meant Labor Day or Sept 22nd, and now was told I should actually expect "mid-fall" as a more likely date. Along with the info from the other posts here, I don't trust that Cap One is really "prioritizing" this, or even working this at all. Very disappointing!!

I hate having to hassle with setting up a new MM account somewhere else and transferring all my Cap One funds there, but I'd hate it more to wait x months and find out I've been played by them on this critical item. Also makes me wonder about how much to trust them on other critical aspects, such as personal data security.

Bhairston2018
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Joined: Wed Feb 21, 2018 3:23 pm

Re: Capital One 360 no beneficiary option

Post by Bhairston2018 » Tue Jul 03, 2018 7:46 pm

Exactly. I ended up moving my funds to Vanguard Prime Money Market which holds my emergency fund. I asked for a time frame from capital one on the beneficiary issue and they said as soon as possible. I read online that banks don’t have to provide the beneficiary option and some don’t because of the extra leg work they have to do on their end. PMM is yielding over 2% and that is where I’ve transferred to a couple months ago, so now all is well. I’ll look to open Ally or discover in the coming months.

3funder
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Re: Capital One 360 no beneficiary option

Post by 3funder » Tue Jul 03, 2018 8:08 pm

This pisses me off as well. My overall experience with Capital One has been excellent over the years, and they have a lot of ATMs and branches in the DC metro area. I'd really hate to take the money I have in the 360 Money Market Account and park it elsewhere (I still maintain a checking account and credit card with them). Decisions, decisions...

2Birds1Stone
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Location: New York

Re: Capital One 360 no beneficiary option

Post by 2Birds1Stone » Sat Jul 14, 2018 12:04 pm

I called them today and you can now submit a form via fax/mail to add beneficiaries to all savings/checking/CD accounts. You can add 4 accounts per form, and have it notarized before submitting to them. Takes 3 business days to turn around once they receive it.

Guess they have been listening to their customers =)

GeraniumLover
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Re: Capital One 360 no beneficiary option

Post by GeraniumLover » Sat Jul 14, 2018 12:40 pm

I had called them earlier this week. They pointed me to the following page, which explains how to add beneficiaries to their accounts:

https://www.capitalone.com/support-cent ... ficiaries/

Good luck! :beer

jwm
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Re: Capital One 360 no beneficiary option

Post by jwm » Mon Jul 16, 2018 12:18 pm

GeraniumLover wrote:
Sat Jul 14, 2018 12:40 pm
I had called them earlier this week. They pointed me to the following page, which explains how to add beneficiaries to their accounts:

https://www.capitalone.com/support-cent ... ficiaries/

Good luck! :beer
I called them up today and they pointed me to the same link.

I had setup a living trust and wanted to convert the account into a living trust account. They said they are working on that feature, but they don't have any timelines for that yet. I am planning to call them again after 2-3 months.

Bhairston2018
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Re: Capital One 360 no beneficiary option

Post by Bhairston2018 » Mon Jul 16, 2018 12:54 pm

This is good information! Thanks !

rayge
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Re: Capital One 360 no beneficiary option

Post by rayge » Mon Jul 23, 2018 12:16 pm

GeraniumLover wrote:
Sat Jul 14, 2018 12:40 pm
I had called them earlier this week. They pointed me to the following page, which explains how to add beneficiaries to their accounts:

https://www.capitalone.com/support-cent ... ficiaries/

Good luck! :beer
Thanks for this. I notice there is no percentage column on the form. It's crazy we can't communicate by email with them. Telephone, mail or fax only. My BB&T bank requires my beneficiaries to present themselves IN PERSON to claim money, and they won't allow me to name beneficiaries on my sole proprietorship account only the personal checking account. Navy Fed CU will do it over the phone and just require email attachments to be sent to them. I was able to transfer my sole proprietorship Fidelity mutual funds accounts with my EIN on it over to a brokerage account set up with my SSN where I named the beneficiaries online. No need to sell and buy the funds again. They did it right over the phone.
I wonder why Capital One requires the form to be notarized? What a [pain --admin LadyGeek].

BeneIRA
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Re: Capital One 360 no beneficiary option

Post by BeneIRA » Mon Jul 23, 2018 7:42 pm

Not being able to designate a beneficiary online, but requiring mailing or faxing a notarized form would have been impressive in the 90's, but in 2018, it is pretty ridiculous.

ElleVA
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Re: Capital One 360 no beneficiary option

Post by ElleVA » Thu Aug 30, 2018 4:22 pm

New to Cap1 360. Just established checking and MMA. Had held off until beneficiaries were allowed. I was told, once the beneficiary form was processed, I would be able to to see that it exists online. Well, I can’t. I have no acknowledgement of what they have on file. I was told that I might be able to see something online in the future. That’s not good enough for me. While I have the original beneficiary form, banks make mistakes and I want confirmation, acknowledgement - something to show when it was established, list of names, accounts the beneficiaries applies to, sans beneficiary social security #. I’ve requested this in writing (snail mail) via their customer satisfaction email (recommended this route by Cap1 Rep). Let’s see if they honor my request.
Past experience— setup beneficiaries with NavyFed, received an acknowledgment letter- missing one of my beneficiaries, misspelled a name, and did not include all the accounts the beneficiary form applied to.
So that’s why it is important to me.

RetiredInPhx
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Re: Capital One 360 no beneficiary option

Post by RetiredInPhx » Thu Aug 30, 2018 10:20 pm

Hi ElleVA, looking forward to your update if/when you receive written confirmation of your Cap One 360 acct beneficiary designations. Can you post the customer satisfaction email address you used to request the written confirmation?

fyi to all: On 7/23, I faxed CapOne the new form mentioned in earlier posts (including notarized signatures! who requires that?!). Two weeks later, on 8/8, I got an email from CapOne with the following:

"Recently a change was made to the beneficiary election(s) on at least one of your accounts with us. If you or your joint account holder didn't request this change, please call us right away at 1-888-464-0727. We're available to help 7 days a week, from 8 a.m. to 11 p.m. ET. If you did make this change, there's nothing you need to do."

As ElleVA noted, this is barely better than worthless. At least I know they got my faxed submittal, but I have no idea if they processed it correctly nor anything to show when needed down the road. Aargh!!!

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AstroJohn
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Re: Capital One 360 no beneficiary option

Post by AstroJohn » Fri Aug 31, 2018 6:53 am

Our Capital One savings accounts are in the name of our living trust. I would think that makes this less of problem as the successor trustee can manage/distribute funds as needed. Moving the accounts from joint to trust was easy.

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munemaker
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Re: Capital One 360 no beneficiary option

Post by munemaker » Fri Aug 31, 2018 8:40 am

GeraniumLover wrote:
Sat Jul 14, 2018 12:40 pm
I had called them earlier this week. They pointed me to the following page, which explains how to add beneficiaries to their accounts:

https://www.capitalone.com/support-cent ... ficiaries/

Good luck! :beer
This is great news!

I assume if you have a joint account, you need to have a separate form notarized for each account holder.

RetiredInPhx
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Re: Capital One 360 no beneficiary option

Post by RetiredInPhx » Fri Aug 31, 2018 11:14 am

AstroJohn wrote:
Fri Aug 31, 2018 6:53 am
Our Capital One savings accounts are in the name of our living trust. I would think that makes this less of problem as the successor trustee can manage/distribute funds as needed. Moving the accounts from joint to trust was easy.
"Moving the accounts from joint to trust was easy" - maybe for you, since you're an astrophysicist :happy
Could you elaborate on how you got your account ownership changed to your trust? By phone, by email, online? I (and others on this forum) have not been successful and would be grateful for some guidance (since CapOne doesn't provide any).

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HueyLD
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Re: Capital One 360 no beneficiary option

Post by HueyLD » Fri Aug 31, 2018 11:32 am

Every company has its own forms and rules. You just have to do the research online or call them.

Here is the form for Cap One 360 https://secure.capitalone360.com/myacco ... cationForm

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AstroJohn
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Re: Capital One 360 no beneficiary option

Post by AstroJohn » Sat Sep 01, 2018 7:08 am

RetiredInPhx wrote:
Fri Aug 31, 2018 11:14 am
AstroJohn wrote:
Fri Aug 31, 2018 6:53 am
Our Capital One savings accounts are in the name of our living trust. I would think that makes this less of problem as the successor trustee can manage/distribute funds as needed. Moving the accounts from joint to trust was easy.
"Moving the accounts from joint to trust was easy" - maybe for you, since you're an astrophysicist :happy
Could you elaborate on how you got your account ownership changed to your trust? By phone, by email, online? I (and others on this forum) have not been successful and would be grateful for some guidance (since CapOne doesn't provide any).
According to my records, I made the change in May of 2016, probably several Capital One web interface changes ago! My printed receipt has the web address https://secure.captialone360.com/myacco ... ngTrust.... I phoned them and they pointed me to a web page where I could download printed forms. In going to that page, I saw that I could just fill out everything on line. The only problem I had was that my trust docs have U/A in them and their interface barfed at the /. I ended up changing it to Under Agreement.

glock19
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Re: Capital One 360 no beneficiary option

Post by glock19 » Sat Sep 01, 2018 10:07 am

BeneIRA wrote:
Mon Jul 23, 2018 7:42 pm
Not being able to designate a beneficiary online, but requiring mailing or faxing a notarized form would have been impressive in the 90's, but in 2018, it is pretty ridiculous.
I agree, but having recently been through account registration changes with Fidelity, Vanguard, Capital One 360, I can assure you paper forms, either notarized or medallion signature guarantee, are required. Security issues are the reason these companies are covering themselves. It's a pain, but on the other hand it makes you feel better about the security of your online accounts.

BeneIRA
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Re: Capital One 360 no beneficiary option

Post by BeneIRA » Mon Sep 03, 2018 4:33 pm

glock19 wrote:
Sat Sep 01, 2018 10:07 am
BeneIRA wrote:
Mon Jul 23, 2018 7:42 pm
Not being able to designate a beneficiary online, but requiring mailing or faxing a notarized form would have been impressive in the 90's, but in 2018, it is pretty ridiculous.
I agree, but having recently been through account registration changes with Fidelity, Vanguard, Capital One 360, I can assure you paper forms, either notarized or medallion signature guarantee, are required. Security issues are the reason these companies are covering themselves. It's a pain, but on the other hand it makes you feel better about the security of your online accounts.
If you are designating a non-spouse primary beneficiary for a retirement account but are married, then yes, all of that makes sense and is in line with IRS guidelines. If I am married and select my spouse as the primary beneficiary, then all of this is ridiculousness. My spouse is the primary beneficiary anyway whether I designate her or not for all retirement accounts. Forcing me to go through al of those steps is a waste of time.

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munemaker
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Re: Capital One 360 no beneficiary option

Post by munemaker » Tue Sep 04, 2018 4:20 pm

Would appreciate a second opinion on this.

I am married with 2 adult children.

Wife and I have joint accounts at Capital One. Capital One 360 beneficiary form says that upon the death of all owners, they will pay out to the beneficiaries. So, my conclusion is no need to specify my wife as beneficiary, and I would name my two adult children.

Make sense?

mervinj7
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Re: Capital One 360 no beneficiary option

Post by mervinj7 » Fri Sep 21, 2018 1:06 pm

munemaker wrote:
Tue Sep 04, 2018 4:20 pm
Would appreciate a second opinion on this.

I am married with 2 adult children.

Wife and I have joint accounts at Capital One. Capital One 360 beneficiary form says that upon the death of all owners, they will pay out to the beneficiaries. So, my conclusion is no need to specify my wife as beneficiary, and I would name my two adult children.

Make sense?
Were you able to get an answer for this from Capital One? We are planning on setting up a living trust and transferring our CapOne360 accounts to it. However, while that is being done, I'm wondering if we should fill out the beneficiary forms to get our son's on the joint accounts.

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