Capital One 360 no beneficiary option

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Bhairston2018
Posts: 48
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
Posts: 6936
Joined: Tue Feb 27, 2007 3:26 pm
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
Posts: 229
Joined: Sat Apr 09, 2016 6:00 pm

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.
Reality has a way of catching up with you

bsteiner
Posts: 3326
Joined: Sat Oct 20, 2012 9:39 pm
Location: NYC/NJ/FL

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
Posts: 1550
Joined: Sat Mar 29, 2008 9:25 pm
Location: Miami FL

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: 48
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: 97
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
Posts: 703
Joined: Wed Aug 05, 2015 3:21 pm

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
Posts: 48
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
Posts: 6
Joined: Thu Apr 12, 2018 12:13 pm

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
Posts: 2
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: 48
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
Posts: 1
Joined: Tue Jul 03, 2018 12:54 pm

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
Posts: 48
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
Posts: 612
Joined: Sun Oct 15, 2017 9:35 pm

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
Posts: 446
Joined: Wed Nov 19, 2014 10:33 pm
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
Posts: 100
Joined: Mon Feb 22, 2016 3:39 pm

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
Posts: 1
Joined: Mon Dec 14, 2015 3:03 am

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
Posts: 48
Joined: Wed Feb 21, 2018 3:23 pm

Re: Capital One 360 no beneficiary option

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

This is good information! Thanks !

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