SIE practice questionhardAccount Types – Beneficiary Designations
Which account type most commonly allows the use of a 'transfer on death' (TOD) beneficiary?
- AIndividual brokerage account✓ Correct answer
- BPartnership account
- CCustodial account
- D401(k) account
Explanation
Why A — Individual brokerage account
Most individual brokerage accounts offer TOD designations, allowing assets to pass to named beneficiaries outside probate. Partnership and custodial accounts do not generally permit TOD.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 1,867+ SIE questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Spot an error in this question or explanation? Tell us — we fix these fast.
Related Account Types questions
- A check drawn on a joint brokerage account MUST be payable to:
- A client has individual, joint, IRA, and margin accounts at the same broker-dealer. Which regulatory requirement…
- In a trust account, who is considered the beneficial owner of the assets?
- What is a key difference between a trust account and a joint account?
- Which account type is generally NOT permitted to use margin?
- A mutual fund manager prefers to settle trades on a delivery versus payment (DVP) basis. What does this mean?
- When an account holder dies, what action should a broker-dealer take regarding the account?
- Which statement about a custodial account is correct?