CD beneficiary designation

[Justin Bilyj]

Hopefully those that have worked in the banking industry (cough @DHK cough), will help me out with this one. Please correct my understanding:

1. Most CD owners don't declare a beneficiary for their CD
2. Most bankers don't ask CD owners for a beneficiary when filling out the CD paperwork

Just wondering how CD's and probate works...

 

[DHK]

1. True. However, I just opened a new banking account at a credit union, and I was surprised that she asked me if I wanted to name a beneficiary.

2. Again, generally true.

And there's no reason for the bank/CU to be more pro-active because who would sue that you didn't ask to name a beneficiary? Disinherited people contest wills and trusts, not banks who didn't ask who should be named on a TOD form.

If they do name a beneficiary, it's usually for a "Transfer on Death / TOD" type of designation.
Transfer On Death - TOD

I hope this helps.

 

[walthamny]

They get paid/bonuses for opening CD's but there is no bonus for asking beneficiaries. Pay the bonus when the client gives a beneficiary or checks a box saying they are refusing to give a beneficiary, the problem will mostly dissappear. Also when the beneficiary is missing, the probate will take longer and that means more money for the bank

 

[adjusterjack]

Most CD owners don't declare a beneficiary for their CD

In general, most consumers aren't very bright.

Most bankers don't ask CD owners for a beneficiary when filling out the CD paperwork

It's up to the account owner to think about that sort of thing.