Individual Account

An individual account is an account that is owned by one person. That person makes the determination as to what securities are purchased and sold. In addition, that person receives all of the distributions from the account.

Joint Account

A joint account is an account that is owned by two or more adults. Each party to the account may enter orders and request distributions. The registered representative does not need to confirm instructions with both parties.  Joint accounts require the owners to sign a joint account agreement prior to the opening of the account. All parties must endorse all securities and all parties must be alive. Checks drawn from the account must be made out in the names of all of the parties.

Joint Tenants with Rights of Survivorship (JTWROS)

In a joint account with rights of survivorship, all the assets are transferred into the name of the surviving party in the event of one tenant’s death. The surviving party becomes the sole owner of the assets in the account.  Both parties on the account have an equal and undivided interest in the assets in the account.

Joint Tenants in Common (JTIC)

In a joint account that is established as tenants in common, the assets of the tenant who has died become the property of the decedent’s estate. They do not become the property of the surviving tenant. An account registered as joint tenants in common allows the assets in the account to be divided unequally; one party on the account could own 60% of the account’s assets.

Note: Any securities registered in the names of two or more parties must be signed by all parities and all parties must be alive to be considered good delivery.

Transfer on Death (TOD)

An account that has been registered as a transfer on death (TOD) account allows the account owner to stipulate to whom the account is to go to in the event of their death. The party who will become the owner of the account, in the event of the account holder’s death, is known as the beneficiary. The beneficiary may only enter orders for the account if they have power of attorney for the account. Unlike an account that is registered as JTWROS, the assets in the account will not be at risk should the beneficiary become the subject of a lawsuit, such as in a divorce proceeding. In the event of the accountholder’s death the account will pass to the beneficiary in a non testamentary transfer that is the account ownership will transfer to the beneficiary without going through the probate process. 

 

ACCOUNTS FOR EMPLOYEES OF OTHER BROKER DEALERS

Related Articles
  1. Investing

    Joint Tenancy: Benefits and Pitfalls

    This arrangement allows beneficiaries to access your account without having to go to court. Learn about the benefits and pitfalls to joint tenants with rights of survivorship (JTWROS).
  2. Managing Wealth

    6 Reasons Why You Might Not Elect Joint Ownership

    Joint ownership offers numerous benefits, but there are underlying issues to take into account.
  3. Personal Finance

    Handling High-Yield Savings Accounts

    Is a high-yield savings account right for you? Read on to find out what they have to offer.
  4. Investing

    A Day In The Life Of An Accountant

    An analysis of the accountant profession, who becomes an accountant, what they do, where they work, and salary ranges.
  5. Trading

    Forex Basics: Setting Up An Account

    The line between profitable forex trading and ending up in the red may be as simple as choosing the right account.
  6. Personal Finance

    Should You Open a Joint Checking Account?

    Joint finances may not be romantic, but it's an issue that serious long-term couples will have to confront at some point.
  7. Small Business

    Best Checking Accounts For Small Businesses

    What you need to know to choose the best checking account for your small business – and where to look.
  8. Retirement

    3 Deadlines For Retirement Plan Beneficiaries

    To take full advantage of new RMD regulations, beneficiaries need to take action before important deadlines.
  9. Investing

    Understanding Capital And Financial Accounts In The Balance Of Payments

    The current, capital and financial accounts compose a nation's balance of payments, indicating the state of its economy and economic outlook.
  10. Personal Finance

    The 5 Best Alternatives to Bank Savings Accounts

    Find out about some of the most profitable available alternatives to depositing money in a traditional bank passbook savings account.
Trading Center