Finra SIE Exam - Topic 6 Question 5 Discussion

Actual exam question for Finra's SIE exam

Question #: 5
Topic #: 6

[All SIE Questions]

Which of the following account registration types is subject to probate upon the death of the account owner?

AIndividual

BIrrevocable trust

CTransfer-on-death (TOD)

DJoint tenants with right of survivorship (JTWROS)

Show Suggested Answer

Suggested Answer: A

Accounts held individually are subject to probate, which is the legal process of administering the decedent's estate. Probate determines the distribution of assets according to the deceased's will or state intestacy laws.

A is correct because individual accounts require probate to transfer assets.

B is incorrect because irrevocable trusts bypass probate.

C is incorrect because TOD accounts allow direct transfer of assets to named beneficiaries without probate.

D is incorrect because JTWROS accounts transfer ownership to the surviving account holder automatically.

by Thea at Feb 06, 2025, 05:44 PM

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Vicki

4 months ago

Really? I’m surprised by that info!

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Casey

4 months ago

Wait, I thought TOD accounts didn't?

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Micah

4 months ago

Actually, JTWROS avoids probate too.

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Merissa

5 months ago

Totally agree, it's a hassle!

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Jade

5 months ago

Individual accounts go through probate.

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Rebbecca

5 months ago

I believe JTWROS accounts don’t go through probate since the surviving owner takes over, but I could be wrong.

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Marget

5 months ago

I’m confused about TOD accounts. Do they bypass probate or not? I feel like I need to double-check that.

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Ezekiel

5 months ago

I remember practicing a question like this, and I think irrevocable trusts avoid probate, right?

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Ressie

5 months ago

I think individual accounts go through probate, but I'm not entirely sure about the others.

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Zack

5 months ago

I'm a little unsure about this one. I'll need to review my notes on the different account registration types and their probate implications.

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Olga

5 months ago

I'm pretty confident the answer is C. Transfer-on-death accounts bypass probate, so that must be the one that's subject to it.

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Minna

5 months ago

Okay, I've got this. The individual account is the only one that would be subject to probate, since the other options have special provisions for transfer upon the owner's death.

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Leandro

5 months ago

Hmm, I think the key here is to focus on which account type is subject to probate. That should help me narrow it down.

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Arlette

6 months ago

This question seems straightforward, but I want to make sure I understand the differences between the account types before selecting an answer.

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Melodie

1 year ago

Probate, schmobate! I'm gonna go with JTWROS and let my loved ones duke it out later. Keeps things interesting, you know?

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Noel

12 months ago

Individual registration is definitely subject to probate, so not the best choice.

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Graham

12 months ago

I'm not sure, but I think Irrevocable trust also bypasses probate.

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Talia

1 year ago

I think TOD might be a better option, avoids probate altogether.

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Kris

1 year ago

I agree, JTWROS is the way to go. Let them figure it out later!

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Vanda

1 year ago

I'm not sure, but I think Irrevocable trust accounts are also subject to probate.

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Haydee

1 year ago

I agree with Delsie, because Individual accounts are subject to probate.

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Stephaine

1 year ago

Irrevocable trust? More like 'irremovable headache' if you ask me. I'll pass on that one.

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Broderick

1 year ago

D) Joint tenants with right of survivorship (JTWROS)

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Margot

1 year ago

C) Transfer-on-death (TOD)

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Haydee

1 year ago

A) Individual

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Yaeko

1 year ago

Individual account? Sounds like a recipe for family drama after I'm gone. I'll go with the TOD instead.

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Darrin

12 months ago

Joint tenants with right of survivorship (JTWROS) is also a good choice to avoid probate.

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Rhea

12 months ago

Definitely, TOD avoids probate and makes things easier for your loved ones.

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Alonso

1 year ago

I agree, I think Transfer-on-death (TOD) is a better option.

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Julie

1 year ago

Individual account? Sounds like a recipe for family drama after I'm gone.

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Delsie

1 year ago

I think the answer is Individual.

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Darci

1 year ago

Probate? No thanks, I'll take the JTWROS option and avoid that whole mess.

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Kristofer

1 year ago

I think I'll go with the Transfer-on-death option just to be safe.

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Lore

1 year ago

I agree, JTWROS is definitely the way to go to avoid probate.

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