SIE practice questionmediumAccount Types – Trust versus Joint
What is a key difference between a trust account and a joint account?
- AA trust account is managed by a trustee for beneficiaries✓ Correct answer
- BA trust account allows only one beneficiary
- CA joint account automatically passes to a trust upon death
- DA joint account is only for married couples
Explanation
Why A — A trust account is managed by a trustee for beneficiaries
A trust is managed by a trustee for beneficiaries; a joint account is owned directly by two or more people. Joint accounts are not limited to married couples and assets may or may not pass to a trust.
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