A Scenario I’Ve Never Encountered

gregk | Oct 3, 2024 | 73 posts since 2013

About a year ago a close family member of mine (not wife or child) passed away and I was faced with the necessity of removing that person as named beneficiary of certain of my financial assets (CD’s, bank accounts, and such) and replacing her with alternative beneficiaries. One Financial Institution however is refusing to allow that until I provide them an original Death Certificate of the deceased beneficiary on my accounts with them. This has altogether astonished me as I am free to name whatever beneficiaries I choose for my accounts, and to change that designation whenever I might wish

to, - with the said FI acknowledging that had they not know the existing beneficiary had died (which I had told them just in passing) the change I requested could have easily been accomplished.

So far, no FI representative has been able to sensibly explain why a Death Certificate of the beneficiary I want to remove from my accounts and replace with two others is needed by them.

Anyone here ever encountered such a situation in their own affairs, or otherwise able to explain the legitimacy of such a demand?

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milty | Oct 3, 2024 | 1,689 posts since 2018

I have not, but am also surprised that you as primary do not have full control.

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choice1 | Oct 3, 2024 | 371 posts since 2023

And the FI is?

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enduser | Oct 3, 2024 | 711 posts since 2015

The very first question I have for you is why are you not naming and protecting the scum FI?
Name them so others can make a wise decision not to bank there. And for you just get your money out via way of a pull from another FI.

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racecar | Oct 3, 2024 | 628 posts since 2014

Easy answer!

Call back, speak to someone else, don't mention anything about death, just say you want to update your PODs (as you have a right to do anytime). Pretend you never talked to anyone about it (that CSR was most certainly wrong). Just ask where you can get the form to update your PODs, then where to FAX / Email / Snail-mail it to, then do it. Just do it. That other conversation never happened. (I'm sure that CSR was wrong). Don't mention anything about a death. You simply "want to update my PODs." Everyone has a right to do that anytime. Call someone else (or if you physically went into a branch, just go into another branch. Simple.)

If I'm wrong (and I can't imagine I am), please post which FI this is, and speak to a branch manager or higher, not just a teller or someone in the call center.

If not, there's always... "We thought Freddie died, but he actually just went to Vegas for the week, and now he's back. But Freddie wouldn't share his popsicle with me, what a jerk, so I need to update my PODs."

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gregk | Oct 4, 2024 | 73 posts since 2013

Ha ha ha. Yeah, it’s been that surreal an interaction I’ve had with this FI. In fact though, the original Bank rep who’s been my point person throughout the ordeal has been acutely embarrassed by her overlings, and doesn’t herself understand their demand, but says the Dept in charge doesn’t speak directly to Bank customers, so it wouldn’t be possible me talking with them directly (a circumstance right out of a Kafka novel, - for anyone still around who was educated on classic lit).

So I asked to speak with some higher authority (manager) in her own Dept (just what these various “Departments” being referred to actually are, I don’t know), and was told they respond to such requests only at days end, so I could expect a call right before (yesterday) close.

However, as that time was approaching my contact rep called to say she had spoken to her own Supervisor who could not himself understand the Death Certificate directive, and so released her to process the Beneficiary changes I have requested.

Wow. What ridiculousness I can hope is now over, - if still without any explanation of or rationale for
why someone had in their head I should prove death for someone I merely wished to remove as Beneficiary from my accounts.

Who’s the FI? Headquartered in Massachusetts is all I will say, and not unfamiliar to all those long time habitual readers of the late lamented DA (not to be confused with the current imposture).

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racecar | Oct 4, 2024 | 628 posts since 2014

Wow. Glad it worked out ok in the end, but unless that FI's rates are well above others, you might want to move your funds elsewhere once they've matured/are available.

I guess that's a life lesson not to give too much information (though a bad one, as it shouldn't make any difference)... in the future just tell the FI you need to update the PODs and leave out the reason. A terrible life lesson, like that cliched advice of lawyers (to the question "Do you know what time it is?" never answer "11:30", just answer "Yes").

An FI based in Mass. Hm... I wonder if it's the one that turned me down for a savings account once -- the only place ever in my life to do so. It was based in MA and I heard about it on DA back in the day. They turned me down for no reason, and I immediately went elsewhere and was able to open up accounts elsewhere no problem.

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