How to Change a Brokerage Account From Joint to Individual
Changing a brokerage account from joint to individual ownership is generally a straightforward process. Usually, permission is granted from one owner to relinquish his rights in an account to the other, and the change is processed. An investor must bear in mind that beyond the change in title, there may be financial, investment or tax issues that should be considered before processing the change.
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Instructions
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Ask your broker or financial services firm what they need to change an account from joint to individual ownership. While the transfer will universally require permission granted from one party to another, individual firms may have specific requirements that you must follow. For example, some firms may require a new individual account to be opened with a new account number, while others may use the same account number and simply drop the joint owner's name from the title.
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Sign the appropriate paperwork as directed by the firm. Keep your own copies for your personal financial files and for your tax adviser. Ask your broker or firm what the expected time frame of the transfer will be.
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Inform your tax adviser of the change. If you have not discussed this with your adviser previously, this is the time to apprise him of the change in your financial affairs, as your tax strategy may be altered by the change in account title.
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Review your account statements to ensure that the change in title occurred according to your wishes. Any errors or discrepancies should be rectified as soon as possible, before any transactions occur in the account.
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Tips & Warnings
Many types of account ownership are available beyond joint and individual, including transfer on death and tenants in common. Explore all of these options with your financial or tax advisers before you make any decisions.
