On Ken's blog "USALLIANCE allows POD beneficiary(ies) to be named, but Social Security numbers are required for each named beneficiary, which can be a deal breaker for some investors" Can someone explain why asking for a SSN is a "deal breaker"?
Answers
Lots of other reasons might apply to. For instance, you might not want the beneficiary to know they are your beneficiary, for various reasons, such as you might not want it changing their decisions in life, knowing they could get your money. So, even if you ignored that it might be inappropriate to even ask for such a private matter, you don't ask because then they would know they are beneficiary. That kind of knowledge by them could change their values about being responsible with money.
There certainly can be plenty of singular reasons in particular situations too.
But I ask you the reverse, why would only about 5% of banks and CUs force someone to give up someone else's SS number when it is not required of a beneficiary? Only few places do that -- why? The overwhelming number do not. And it scares me every time one of these places insists it is required by the Patriot Act, or sometimes they say it is required by Regulation D, a 100% false assertion -- when I hear they don't know squat about their own business or the legal requirements, it scares me about doing business with them, they clearly don't know what they are doing. And when they have no respect for the sanctity of someone's SS number, I worry about their handling of all the information they collect from me.
