Vanguard seeks just one beneficiary; a mistake?

Vanguard doesn't often get bad press. In fact, I would call it something of a perennial media darling. Personal finance reporters really like its low-cost, customer friendly approach. Which is why I was struck by this Forbes article about Vanguard's move to limit its IRA customers to a single beneficiary. In July, Vanguard sent 170,000 customers a letter telling them that by mid-September all of their IRAs must list the same beneficiary. It seems the firm will automatically apply the person listed on the most recent form as the beneficiary if it is not given a name. The move will likely afford the fund giant some administrative streamlining, but it will not go over well with customers. Some will likely end up with a different beneficiary on some accounts and not even realize it! Most top funds allow different beneficiaries, which strikes me as a good thing. We'll see if a big stink issues forth.