Series 7 practice questioneasyAccount Registration 1
Which statement best describes joint tenants with rights of survivorship registration?
- Athe estate must approve all trades before settlement
- Bthe surviving owner automatically receives the deceased owner’s interest✓ Correct answer
- Cthe account can only hold municipal securities
- Dall gains are automatically tax-free
Explanation
Why B — the surviving owner automatically receives the deceased owner’s interest
Different forms of account registration determine ownership rights during life and at death. A representative must understand how joint tenants with rights of survivorship affects control, transfer, and estate treatment before opening the account.
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