Individual and Joint Accounts
Chapters in this video
- 0:00 The simplest ownership: individual accounts
- 1:09 Trading authorization: pushing buttons without ownership
- 2:14 Joint accounts: two owners, both signatures required
- 3:23 JTWROS versus TIC: the two flavors of joint accounts
- 4:22 The death test: probate bypass versus estate probate
- 6:06 Rapid-fire exam recap
What this video covers
- What a trading authorization actually grants: trade placement only, not ownership, with all distributions still belonging to the account holder
- Why all owners must sign the new account form to open a joint account, and why one owner cannot secretly add another
- The trade-execution rule for joint accounts: any one owner can place a trade, but checks and distributions must be payable to all owners
- Why JTWROS means undivided interest in the entire account, with no fixed percentage ownership allowed
- How TIC accounts differ by permitting specific percentage splits, such as a 60/40 ownership allocation
- The death-test flow: JTWROS bypasses probate and survives automatically to the remaining owner(s), while TIC sends the deceased's share to their estate through probate
- Which joint account type spouses typically use, and which business partners or unrelated investors typically prefer
Read the full lesson, free
This video's complete written lesson is free to read in the CertFuel app, no signup wall. The complete SIE course in the app is free too, including adaptive practice questions and spaced-repetition flashcards.