Finra Exam SIE Topic 6 Question 5 Discussion

Actual exam question for Finra's SIE exam

Question #: 5
Topic #: 6

[All SIE Questions]

Which of the following account registration types is subject to probate upon the death of the account owner?

AIndividual

BIrrevocable trust

CTransfer-on-death (TOD)

DJoint tenants with right of survivorship (JTWROS)

Show Suggested Answer

Suggested Answer: A

Accounts held individually are subject to probate, which is the legal process of administering the decedent's estate. Probate determines the distribution of assets according to the deceased's will or state intestacy laws.

A is correct because individual accounts require probate to transfer assets.

B is incorrect because irrevocable trusts bypass probate.

C is incorrect because TOD accounts allow direct transfer of assets to named beneficiaries without probate.

D is incorrect because JTWROS accounts transfer ownership to the surviving account holder automatically.

by Thea at Feb 06, 2025, 05:44 PM

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Stephaine

5 days ago

Irrevocable trust? More like 'irremovable headache' if you ask me. I'll pass on that one.

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Yaeko

10 days ago

Individual account? Sounds like a recipe for family drama after I'm gone. I'll go with the TOD instead.

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Delsie

16 days ago

I think the answer is Individual.

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Darci

17 days ago

Probate? No thanks, I'll take the JTWROS option and avoid that whole mess.

upvoted 0 times

Lore

9 days ago

I agree, JTWROS is definitely the way to go to avoid probate.

upvoted 0 times

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