Series 7 practice questioneasyAccount Registration 4
Which statement best describes transfer on death registration registration?
- Athe named beneficiary receives the assets outside probate at the owner’s death✓ Correct answer
- Bthe beneficiary has trading authority immediately
- Cthe owner loses control of the account
- Dthe account becomes a margin account automatically
Explanation
Why A — the named beneficiary receives the assets outside probate at the owner’s death
Different forms of account registration determine ownership rights during life and at death. A representative must understand how transfer on death registration affects control, transfer, and estate treatment before opening the account.
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