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Zorluk: ZorCustomer Account Types and Ownership Structures

Elena and Marcus hold a joint brokerage account registered as Tenants in Common (TIC), with Elena designated as a 60% owner and Marcus as a 40% owner. Following Elena's death, Marcus contacts the broker-dealer requesting to liquidate all portfolio holdings and transfer 100% of the account proceeds to his individual bank account, claiming sole ownership rights. Which of the following actions must the broker-dealer take in response to Marcus's request?

  1. Freeze the account against trading and disbursements until the legal representative of Elena's estate presents required legal documentation.Cevap
  2. B
    Fulfill Marcus's liquidation and transfer request immediately, as joint account registration automatically grants full survivorship rights to the remaining owner.
  3. C
    Unilaterally divide the account assets by liquidating 60% for distribution to Elena's heirs and transferring the remaining 40% into Marcus's individual account without requiring estate paperwork.
  4. D
    Allow Marcus to continue trading within the account to manage market risk, but restrict cash withdrawals until probate proceedings are completed.

Cevap

The broker-dealer must freeze the account for trading and disbursements until the legal representative of Elena's estate presents required legal documentation.
In a Tenants in Common (TIC) account, each tenant owns a specified percentage of the account assets. When a TIC tenant dies, their ownership share passes to their estate, not to the surviving tenant. The broker-dealer must immediately freeze the account to prevent unauthorized trading or asset transfers until the executor or administrator of the deceased owner's estate presents proper legal documentation (such as a certified death certificate and letters testamentary).

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1
Identify the account registration structure and survivorship rules.
The account is registered as Tenants in Common (TIC). Unlike Joint Tenants with Rights of Survivorship (JTWROS), TIC ownership does NOT automatically transfer the deceased owner's assets to the surviving tenant.
Under TIC registration, a deceased tenant's specified percentage of ownership becomes part of their estate and must be handled according to their will or probate law.
2
Determine the required firm protocol upon receiving notification of a TIC tenant's death.
The firm must freeze the account against further orders and disbursements and cancel any open orders.
Neither the surviving owner acting alone nor the broker-dealer has the legal authority to manage or liquidate the decedent's share without instructions from the court-appointed executor/administrator.
3
Select the correct regulatory compliant course of action.
Require official documentation (death certificate, letters testamentary) from Elena's estate representative before unlocking or re-registering the account.
This protects the legal interests of the decedent's estate and ensures proper authorization before any transaction takes place.

Anahtar Kavram

Tenants in Common (TIC) Survivorship and Estate Transfer Rules
Tahmini Süre:2m 0s
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Konular

Customer Account Types and Ownership Structures