Many accounts at brokerage firms are opened as a single Account. A single account is an account operated for one individual. The individual has control of the account and the assets go to their estate in case of their death.
Applying "Single Account" to Securities Exams:
In a single, or individual, account one person is named on the account and that person is the only one with the right to transact business in the account. In order for someone else to have trading authorization in the account, a power of attorney must be signed by the customer naming that person. If the owner of the single account dies, the account reverts to his / her estate. The registered representative should cancel all open orders and mark the account deceased. The registered representative must wait to receive the proper documentation and instructions prior releasing the assets. All of the assets in the single account will be subject to the probate process and distributed according to the terms of the will. All FINRA and NASAA exams require test takes to have a complete understanding of the account establishment and management process. Be sure to know all of the features of joint accounts, TOD accounts and retirement accounts. Master these concepts by testing in our exam prep software and be sure you are ready to pass your exam.