Thursday, July 30, 2009

Schwab Beneficiary Confirmations

Pathways Advisory Group, Inc.
Tiffany Domenici, Client Services Manager

Throughout the past year, we have added custodial attachments to many of your beneficiary designations. Following the addition of a custodial attachment to your accounts, Schwab mails a confirmation of the changes to you. Unfortunately, these confirmation letters are often confusing and erroneous.

Schwab tells me that an automatic system, over which they have little control, generates their confirmation letters. Due to the complex nature of the custodial attachments, Schwab’s database requires their representatives to give each attachment a “job ID.” Many times, the confirmation letter you receive will list this complex job ID as the primary or contingent beneficiary. Unless your beneficiaries happen to be named “Job ID,” you might be a tad confused!

Schwab is currently working to correct this issue; however, the representatives have assured me that when beneficiary changes are received, the originals are scanned into the computer database. Should the time come in which your designations are acted upon, Schwab will always refer to the original signed document and not their hand-typed record. If you receive a confirmation letter following your beneficiary changes, no matter how confusing it may be, it should bring peace of mind that Schwab has received your original signed document and has it stored in your file should the time come to act on it. The good news is that you need not rename all your children “Job ID.”

No comments: