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.
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