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SIE > Nonqualified Accounts > Flashcards

Nonqualified Accounts Flashcards

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SIE Exam flashcards
1
Q

What are nonqualified accounts

A

non retirement but can be tax differed

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2
Q

What happens when a indivi acc dies

A

dist through owners estate unless stated otherwise

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3
Q

Joint accs are what

A

2 or more

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4
Q

what are the rules for transacting bus in a joint account

A

anyone can

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5
Q

2 types of joint accs

A

tenants in common and Joint tenants with right of survivorship

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6
Q

What is TIC

A

owns accc equally or specified %
transfers to estate not other tenants

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7
Q

What is JTWROS

A

undivided interest
passes to other tenants on death

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8
Q

What can be added to an acc to bypass estate on death

A

TOD
transfer on death

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9
Q

When does a TOD work on a joint acc like TIC and JTWROS

A

last surviving tenant dies

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10
Q

POAs end when

A

on death or incapicity of any party

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11
Q

people with a POA power are

A

fiduciaries

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12
Q

How can you continue a POA after incapacity

A

durable

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13
Q

What does a resolution for corporate accs need

A

legal right to open account
any limitations set
name of person who represents the bus in trans

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14
Q

What do corps need to open an account

A

copy of charter
a new account form
resolution from the BOD

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15
Q

assets that are held in trust

A

belong to the trust

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16
Q

three roles in a trust

A

grantor/settler
trustee
bene

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17
Q

living trusts are

A

during grantors lifetime

18
Q

whats common fo rrevocable living trusts

A

grantor to be all three roles

19
Q

can a grantor also be the other roles

A

yes

20
Q

irrevocable trusts can sell assets to pay estate taxes if

A

grantor is also the other roles

21
Q

a trust can use margin if

A

specified not on default

22
Q

What are custodial accounts

A

set up for minors that hold secs or cash

23
Q

what are cust accs usu not used fo r

A

child raising expenses

24
Q

rules for cust accs

A

only one cust and minor
parents cant control it if not the cust
cash only (meaning no debt, lev, etc)

25
Q

Are proof of cust rights needed to open cust account

A

no

26
Q

tax consids for cust accs

A

taxes are to the minor but the parents are resp to pay

27
Q

Even though proof of rights to be a cust are not need to open a cust acc, the custs are still what

A

fiduciaries

28
Q

Cust of cust accs can do what even though they are the fiduciary

A

delegate investment authority to a third party

29
Q

Rules for the cust of a cust acc

A

need to reinvest proceeds
highly risky/ futures/derivitives not allowed excpt covered calls
cant be compensated if the donor

30
Q

If minor dies in cust acc where assets go

A

minor estate not cust or parents estate

31
Q

if cust of cust acc dies or resigns?

A

court or donor of the secs in the acc must pick new cust

32
Q

main diff of UTMA and UGMA cust accounts

A

UTMA allows RE and lasts until age 25
UGMAs last until majority

33
Q

What are the two types of cust accs

A

UTMA and UGMA

34
Q

What are Coverdell Educaiton Savings accs

A

known as education IRAs
used for saving for education purposes
last until 30

35
Q

What happens to Coverdells at 30

A

liquidated w/ 10% pen and normal tax rate
or rolled to other bene

36
Q

How do contribs work for Coverdells

A

2k per year per student until 18
after tax, no tax on gains if used for education purposes

37
Q

People that have a fiduciary responsibility

A

trustees
guardians
custs of a minor

38
Q

Rules for RRs on fid accs

A

no speculative trans
margin reqs additional auth
cant share in acc profits but can charge reasonable fee

39
Q

What do RRs use when picking secs for a fid acc

A

states list of approved secs

40
Q

Do you need a right to be a fid?

A

yes except with a custodial acc

SIE (17 decks)

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