Examkin

Question

Difficulty: Very hardCustomer Account Types and Ownership Structures

Match each customer account type or ownership structure with its defining legal or operational characteristic.

  • Joint Tenants with Rights of Survivorship (JTWROS)Upon the death of one co-owner, their interest automatically transfers directly to the surviving co-owner(s), bypassing probate.
  • Tenants in Common (TIC)The deceased holder's fractional ownership share passes to their legal estate and is subject to probate rather than transferring to surviving holders.
  • Corporate AccountRequires legal documentation including a resolution to verify entity existence and designate officers authorized to conduct trading.
  • Uniform Transfers to Minors Act (UTMA) AccountAn irrevocable account registered under a minor's Social Security number with immediate vesting of assets, managed by a single adult custodian.

Answer

Joint Tenants with Rights of Survivorship (JTWROS) pairs with automatic transfer of interest to surviving co-owners bypassing probate; Tenants in Common (TIC) pairs with fractional shares passing to the deceased owner's estate; Corporate Account pairs with requiring a corporate resolution and charter; UTMA Account pairs with an irrevocable account under the minor's SSN managed by one adult custodian.
Matching each account structure to its defining operational feature requires recognizing: JTWROS automatically transfers interest to surviving co-owners bypassing probate; TIC sends deceased interest to the estate; Corporate accounts mandate a resolution and charter; UTMA accounts are irrevocable under the minor's SSN.

Step-by-Step Solution

1
Analyze survivorship rights for joint personal accounts.
Differentiate JTWROS (automatic transfer to surviving owner, avoiding probate) from TIC (fractional assets pass to the estate/probate).
Survivorship provisions dictate whether assets pass directly to co-owners or to the estate upon death.
2
Examine institutional and entity authorization requirements.
Corporate accounts require board resolutions and corporate charters to establish authority.
Broker-dealers must verify legal authority and designated individuals before allowing corporate trading.
3
Evaluate custodial account rules under UTMA/UGMA.
UTMA accounts vest irrevocably to the minor under their SSN with one custodian.
Custodial assets belong legally to the minor child, not the custodian.

Key Concept

Customer Account Types and Ownership Structures
Rate this question

Topics

Customer Account Types and Ownership Structures