Trading, Accounts & Prohibited ActsQuestion 292 of 398
Two unrelated investors each want their portion of a joint account to pass to their own heirs, not to each other, upon death. Which registration should they choose?
a.JTWROS
b.Transfer on Death in one owner's name
c.Tenants in common (TIC)
d.A single individual account
Explanation
Tenants in common lets each owner hold a distinct fractional interest that passes to their own estate/heirs at death, which suits unrelated co-owners. JTWROS, by contrast, passes the deceased's share to the surviving owner.
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