Series 7 - General Securities Representative Exam

Preview Mode

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 proceedings
A
They are transferred to the TOD beneficiary
B
They are automatically liquidated and sold. All proceeds will sit in cash
C
They are held at the broker dealer forever
D

Explanations

TOD - Transfer On Death accounts allow for the securities to be transferred to the named beneficiary and potentially avoid the probate process

Pricing