Examkin

Question

Difficulty: EasyCustomer Account Types and Ownership Structures

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

  • Joint Tenants with Rights of Survivorship (JTWROS)Account assets bypass probate upon an owner's death, passing directly to the surviving account owner.
  • Tenants in Common (TIC)A deceased owner's percentage share of account assets passes to their estate rather than to surviving account holders.
  • Limited Power of Attorney (LPOA)Grants a designated third party the authority to enter trade orders without allowing asset withdrawals.
  • Uniform Transfers to Minors Act (UTMA) AccountAn irrevocable custodial account established for a single minor beneficiary under an adult custodian's management.

Answer

Joint Tenants with Rights of Survivorship (JTWROS) matches automatically passing assets to the surviving owner; Tenants in Common (TIC) matches passing the deceased owner's share to their estate; Limited Power of Attorney (LPOA) matches trading authority without withdrawal privileges; UTMA Account matches an irrevocable custodial account for a minor.
Each ownership structure and authorization matches its defining legal characteristic: JTWROS ensures automatic survivorship to remaining owners, TIC routes a deceased owner's interest to their estate, LPOA restricts third-party access to trading only without withdrawal rights, and UTMA establishes an irrevocable custodial account for a single minor.

Step-by-Step Solution

1
Identify the survivorship mechanics of JTWROS accounts.
JTWROS specifies that account assets pass directly to the surviving owner upon death, avoiding probate.
Survivorship rights automatically transfer ownership to remaining account holders.
2
Identify the estate transfer rules for TIC accounts.
TIC specifies that a deceased owner's fractional interest goes to their estate.
TIC accounts do not carry survivorship rights.
3
Distinguish Limited Power of Attorney (LPOA) from Full Power of Attorney.
LPOA grants third-party trading authority but prohibits asset disbursements or withdrawals.
Limited authority is restricted to order placement.
4
Identify the key rules governing UTMA custodial accounts.
UTMA accounts are irrevocable accounts established for a single minor under an adult custodian's administration.
Custodial account rules mandate single minor beneficiary ownership and fiduciary management.

Key Concept

Defining features and legal attributes of customer account ownership types and third-party authorizations.
Rate this question

Topics

Customer Account Types and Ownership Structures