Account Types
Two business partners want to open a joint account where each can have a different ownership percentage, and if one dies, their share goes to their estate rather than the other partner. Which account type should they choose?
Tenants in Common (TIC) accounts allow for unequal ownership percentages and do not have survivorship rights - each owner's share goes to their estate upon death. JTWROS requires equal ownership and automatic survivorshi
Complete Analysis & Legal Rationale
Tenants in Common (TIC) accounts allow for unequal ownership percentages and do not have survivorship rights - each owner's share goes to their estate upon death. JTWROS requires equal ownership and automatic survivorship. A partnership account is a separate structure for the business itself.
Distractor Autopsy (Why Other Options Are Traps)
FINRA exam writers design incorrect distractors using specific calculation mistakes and regulatory misconceptions. Review why each option succeeds or fails:
Does not match the governing concept in the explanation.
Matches the verified teaching point in the explanation.
Does not match the governing concept in the explanation.
Does not match the governing concept in the explanation.
Official Standard: Outline-level citation pending rule-specific upgrade. Verify against current FINRA Series 7 outline.