Series 7 - General Securities Representative Exam
An owner of a brokerage account has recently deceased. His account is a TOD account. What happens to the securities in the account?
They are frozen awaiting probate settlement / estate proceedingsA
They are transferred to the TOD beneficiaryB
They are automatically liquidated and sold. All proceeds will sit in cashC
They are held at the broker dealer foreverD
TOD - Transfer On Death accounts allow for the securities to be transferred to the named beneficiary and potentially avoid the probate process