Why You Should Have a Joint Brokerage Account
Joint brokerage accounts are quite similar to usual joint bank accounts. Many people use joint brokerage accounts for several reasons like investing. In case you’re wondering why you should have a joint brokerage account, you will find your answer in this article.
This article will be discussing on what a J.B account is and why you should have one.
What Is a Joint Brokerage Account?
A J.B account is one that permits two or more authorized owners. This type of account can be owned by couples, business partners, a parent and child, and other interested sets of people.
There are several types of Joint brokerage accounts. They are
1. Tenants In Common
With this account, if eventually one of the owners dies, the surviving owner won’t receive any of the decedent assets. His funds will be added to his business.
This type of account is used by business partners.
2. Community Property
Assets between owners of this account are 50/50, and if one owner dies, the decedent’s share goes to their estate. If you have a business partner, the features of community property are one of the reasons why you should have a joint brokerage account.
Only married couples can use this type of account
3. Joint Tenant with Right of Survivorship
This can be used by other sets of people. Here, when one owner dies, full ownership of his assets goes to the surviving owner.
Why You Should Have A Joint Brokerage Account
1. Ability to Avoid Probate
This is very beneficial to married couples. A joint brokerage account can easily avoid probating issues. Since both partners already have an agreement, when one owner passes away, the account goes to the other account holder.
2. Complete Ownership Of Assets By Both/All Holders.
Another reason why you should have a joint brokerage account is quick access to funds. The owners of this account can do anything within the account like transfer money, or check their account balance, without seeking permission from the other partner.
3. Trust Funds
A J.B. account can facilitate a trust fund. A parent and a child can set up an account, and when the parent dies or the child gets to an agreed age, he/she will take over the account.
4. Investments
Another reason why you should have a joint brokerage account is that it will open more room for investments, especially if it’s an expensive one.
Conclusion
I hope from this article you’ve seen some reasons why you should have a Joint brokerage account. However, like everything on earth, joint brokerage accounts still have their downsides. So endeavor to always make proper research on the risk and benefits involved in any type of J.B. account you decide to engage in. I hope this article has enlightened you. Thank you.
