Account Registration

A marital property ownership system used in 9 U.S. states (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, Wisconsin) where assets acquired during marriage are owned 50/50 by both spouses. At death of either spouse, the deceased spouse's half receives a step-up in basis, and in community property states, both halves receive a step-up in basis (double step-up benefit). Property acquired before marriage or by gift/inheritance remains separate property.

Example: A married couple in California (community property state) purchases stock during marriage for $100,0...

A form of joint account ownership where each owner has equal ownership rights and the account automatically transfers to the surviving owner(s) upon death of any owner. Any owner can typically trade, while the joint account agreement and the firm's procedures govern who may give withdrawal instructions and how disbursements are paid. Avoids probate but does not reduce estate taxes (the deceased owner's share is included in their gross estate).

Example: A married couple opens a JTWROS brokerage account with $200,000. Each spouse holds an undivided inte...

A form of joint ownership where each owner holds a fractional, undivided interest in the account. Ownership percentages can be unequal (e.g., 60/40). No right of survivorship: when one owner dies, their share passes to their estate, not to surviving co-owners. Probate is required for the deceased owner's share.

Example: Three siblings inherit a property as tenants in common with unequal shares (50%, 30%, 20%). When the...

An account held in the name of a trust and managed by a trustee who has a fiduciary duty to manage assets for the benefit of beneficiaries. A trust is an arrangement, created by a trust document or a will, under which a trustee takes title to property to protect and conserve it for beneficiaries. The trustee controls the account and makes investment decisions governed by the trust document and prudent investor standards, while beneficiaries hold a beneficial interest in the trust assets on the terms the trust document sets.

Example: A revocable living trust establishes a brokerage account with ABC Investment Advisers. The trust doc...