Account Types and Registration

Who can give instructions? Who pays the taxes? Where do assets go at death?

Decedent's interest passes automatically to surviving owner(s), bypassing probate; ownership presumed equal. Common for spouses.

Each owner holds a stated fractional interest; the decedent's portion passes to their estate, not the co-owner. Common for business partners.

Any owner may enter orders, but checks/distributions must be payable to all owners (mail may go to one address by written agreement); all owners sign the new account form.

Owner names beneficiaries who receive assets directly at death, avoiding probate. Beneficiary has no rights, trading ability, or information while the owner is alive.

One minor, one custodian; registered under the minor's SSN (minor is taxpayer); gifts are irrevocable; custodian must invest prudently (no margin, shorting, or speculation); control passes at age of majority.

The trust agreement (or certification of trust), which names the trustee and defines the trustee's permitted powers.

Court-issued letters testamentary (or letters of administration) naming the executor/administrator — a death certificate alone is not enough.

Corporate resolution naming authorized traders; if margin or short selling is desired, the firm must also review the corporate charter/bylaws.

Limited power of attorney allows trading only; full power of attorney allows trading and withdrawal of assets (typical for trustees and guardians).