Trading, Accounts & Prohibited ActsQuestion 251 of 398
An individual wants to name specific people to receive her brokerage account assets at her death, without going through probate, while keeping full control during her lifetime. Which account registration accomplishes this?
a.Tenants in common with the beneficiaries
b.A discretionary account
c.An UTMA custodial account
d.A Transfer on Death (TOD) registration
Explanation
A Transfer on Death (TOD) registration lets the owner keep full control while alive and designate beneficiaries who receive the assets directly at death, bypassing probate. The beneficiaries have no rights to the account while the owner is living.
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