Capital One 360 no beneficiary option

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Bhairston2018
Posts: 42
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: 6869
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: 224
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: 3282
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: 42
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: 88
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: 42
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: 42
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

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