Apply Ownership Structures - Series 65

1. What is the defining feature of joint tenancy with right of survivorship (JTWROS) at death?

   Decedent's interest passes automatically to surviving joint tenant(s). This right of survivorship bypasses probate, automatically vesting the interest in survivors upon death.

2. What ownership rights does a TOD/POD beneficiary have while the owner is alive?

   No ownership rights until the owner's death. Beneficiaries have no access or control during the owner's lifetime to preserve owner rights.

3. Which designation is most associated with brokerage securities: TOD or POD?

   TOD. TOD is specifically for non-retirement securities accounts to facilitate beneficiary transfers.

4. Which party controls a TOD or POD account during the owner's lifetime?

   The account owner retains full control. The owner maintains sole authority over the account, including changes to beneficiaries.

5. What is a payable on death (POD) designation most commonly used for?

   Bank deposit accounts transferring to a named beneficiary at death. POD allows bank accounts to pass to beneficiaries automatically outside of probate.

6. Apply probate transfer: A and B hold TIC; A dies. Who receives A's interest?

   A's estate (then heirs/beneficiaries) receives A's interest. TIC lacks survivorship, so A's share enters probate for distribution to heirs.

7. Identify the ownership form where each co-owner can leave their share by will.

   Tenancy in common (TIC). TIC permits independent disposition of shares, allowing inheritance by chosen parties.

8. What percentage ownership is presumed for two JTWROS owners if no percentages are stated?

   Equal shares, typically $50\%$ each. JTWROS requires equal ownership interests among joint tenants by default.

9. Apply survivorship: A and B hold JTWROS; A dies. Who owns A's former interest?

   B owns it by right of survivorship. JTWROS survivorship automatically vests A's interest in B, bypassing probate.

10. Identify the key estate-planning advantage of JTWROS compared with TIC.

    Avoids probate for the decedent's interest via survivorship. Survivorship in JTWROS transfers assets directly, avoiding probate delays and costs.

11. Apply TOD: Owner names beneficiary on a TOD account and then dies. Does it go to probate?

    No; it transfers directly to the named beneficiary. TOD beneficiary designation ensures direct transfer, avoiding probate proceedings.

12. What percentage ownership is presumed for two TIC owners if no percentages are stated?

    Equal shares, typically $50\%$ each. Absent specified percentages, TIC presumes equal undivided interests for simplicity and fairness.

13. What happens to a TOD/POD account at the owner's death if a beneficiary survives?

    It transfers directly to the beneficiary outside probate. Beneficiary designations override probate, allowing direct transfer if the beneficiary survives.

14. Which ownership form allows unequal percentage interests by default: JTWROS or TIC?

    TIC. TIC allows flexible, unequal shares among owners, while JTWROS requires equal interests.

15. Which option is correct: JTWROS creates survivorship, while TIC creates probate transfer?

    Correct. The statement accurately distinguishes survivorship in JTWROS from probate in TIC.

16. Identify the key estate-planning advantage of TIC compared with JTWROS.

    Allows the owner to bequeath their share to chosen heirs. TIC allows testamentary disposition, enabling owners to control inheritance via will.

17. Apply ownership math: Two TIC owners have stated interests of $60\%$ and $40\%$. Is this permitted?

    Yes; TIC permits unequal ownership percentages. TIC accommodates specified unequal interests, unlike the equal presumption in JTWROS.

18. Identify the ownership form where an owner cannot leave their share by will.

    Joint tenancy with right of survivorship (JTWROS). JTWROS survivorship prevents testamentary transfer, as interest passes to survivors.

19. Which ownership form always includes a right of survivorship: JTWROS or TIC?

    JTWROS. JTWROS includes automatic survivorship by definition, unlike TIC which does not.

20. What is the defining feature of tenancy in common (TIC) at an owner's death?

    Decedent's interest passes through the estate, not to co-owners. Without survivorship, the share is inherited via will or intestacy through probate.

21. Which option best avoids probate for a single-owner account: TOD, POD, or TIC?

    TOD or POD (beneficiary designation). TOD/POD beneficiary designations enable direct transfer, bypassing probate for single owners.

22. What is a transfer on death (TOD) registration for securities accounts?

    A beneficiary designation transferring the account at death outside probate. TOD designates a beneficiary to receive securities directly upon death, bypassing probate.

23. Apply POD: Depositor adds a POD beneficiary and then dies. Who can claim the funds?

    The POD beneficiary can claim the funds. POD allows the named beneficiary to receive funds directly from the bank post-death.

24. Which designation is most associated with bank deposits: TOD or POD?

    POD. POD is designed for bank products like CDs and savings to enable direct beneficiary claims.

25. What is the primary probate consequence of TIC ownership compared with JTWROS?

    TIC interest is probated; JTWROS interest passes by survivorship. TIC lacks survivorship, requiring probate, while JTWROS avoids it through automatic transfer.

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