Estate Planning for Brokerage Accounts

Proper estate planning on brokerage accounts moves assets efficiently to heirs.

Brokerage account estate planning allows securities to pass to heirs efficiently. By setting up an account with the correct estate plan your family will avoid estate hassles when you pass away.

Trust

Trusts are written by attorneys for estate planning.

Accounts held in a trust name live on with the trust once the account owner passes away. Although account control changes hands to the contingent trustee, the account does not change.

Joint With Rights of Survivorship

Joint with rights of survivorship allows a surviving spouse to control the account.

Accounts jointly titled with survivorship rights allow one owner to claim all assets of an account when the other owner passes away.

Tenants in Common

Each owner of this type of account owns a portion of the assets. Once a single owner passes away, only one-half is claimed by the estate and the other is still held by the joint owner of the account.

Transfer on Death

Named beneficiaries don't have account control while the owner is alive.

Transfer on death registration, according to the Securities and Exchange Commission, allows accounts to have a beneficiary attached. This passes the account to named heirs or a named estate once the owner passes away.

References

• Ultimate Guide to Personal Finance for Entrepreneurs: Asset Transfer Mechanisms
• Securities and Exchange Commission: Transfer on Death Registration