Nonqualified Accounts

Question 1

What are nonqualified accounts

Answer 1

non retirement but can be tax differed

Question 2

What happens when a indivi acc dies

Answer 2

dist through owners estate unless stated otherwise

Question 3

Joint accs are what

Answer 3

2 or more

Question 4

what are the rules for transacting bus in a joint account

Answer 4

anyone can

Question 5

2 types of joint accs

Answer 5

tenants in common and Joint tenants with right of survivorship

Question 6

What is TIC

Answer 6

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

Question 7

What is JTWROS

Answer 7

undivided interest
passes to other tenants on death

Question 8

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

Answer 8

TOD
transfer on death

Question 9

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

Answer 9

last surviving tenant dies

Question 10

POAs end when

Answer 10

on death or incapicity of any party

Question 11

people with a POA power are

Answer 11

fiduciaries

Question 12

How can you continue a POA after incapacity

Answer 12

durable

Question 13

What does a resolution for corporate accs need

Answer 13

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

Question 14

What do corps need to open an account

Answer 14

copy of charter
a new account form
resolution from the BOD

Question 15

assets that are held in trust

Answer 15

belong to the trust

Question 16

three roles in a trust

Answer 16

grantor/settler
trustee
bene

Question 17

living trusts are

Answer 17

during grantors lifetime

Question 18

whats common fo rrevocable living trusts

Answer 18

grantor to be all three roles

Question 19

can a grantor also be the other roles

Answer 19

yes

Question 20

irrevocable trusts can sell assets to pay estate taxes if

Answer 20

grantor is also the other roles

Question 21

a trust can use margin if

Answer 21

specified not on default

Question 22

What are custodial accounts

Answer 22

set up for minors that hold secs or cash

Question 23

what are cust accs usu not used fo r

Answer 23

child raising expenses

Question 24

rules for cust accs

Answer 24

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

Question 25

Are proof of cust rights needed to open cust account

Answer 25

no

Question 26

tax consids for cust accs

Answer 26

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

Question 27

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

Answer 27

fiduciaries

Question 28

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

Answer 28

delegate investment authority to a third party

Question 29

Rules for the cust of a cust acc

Answer 29

no lev or borrowing
need to reinvest proceeds
highly risky/ futures/derivitives not allowed excpt covered calls
cant be compensated if the donor

Question 30

If minor dies in cust acc where assets go

Answer 30

minor estate not cust or parents estate

Question 31

if cust of cust acc dies or resigns?

Answer 31

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

Question 32

main diff of UTMA and UGMA cust accounts

Answer 32

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

Question 33

What are the two types of cust accs

Answer 33

UTMA and UGMA

Question 34

What are Coverdell Educaiton Savings accs

Answer 34

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

Question 35

What happens to Coverdells at 30

Answer 35

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

Question 36

How do contribs work for Coverdells

Answer 36

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

Question 37

People that have a fiduciary responsibility

Answer 37

trustees
guardians
custs of a minor

Question 38

Rules for RRs on fid accs

Answer 38

auth needed that the fid is allowed
no speculative trans
margin reqs additional auth
states usu list secs that are approved
cant share in acc profits but can charge reasonable fee