One Name, Two Name, No Name Accounts

When you set up a new investment account, how much time did you (or your advisor) spend considering the titling of the account?

If you have a trust, is it listed as beneficiary on the account? Whose Social Security number is on your joint account?

These decisions seem routine, but they determine who owns and controls the assets in the account and what happens to them when you die.

The discussion is overdue. Have it with the attorney who drafted your will or trust. Investment account registration forms feel burdensome; lots of paper (or e-pages) and legal terminology. Usually, the first two fields are account registration and registration type.

Individual name? Joint tenants with right of survivorship? Tenants in common? Tenants in the Entirely (in some states). Most people move through this question quickly because it feels administrative. Maybe, but it’s one of your first important planning decisions.

If the account is titled in one person's name, does it pass through probate? If it is titled jointly, is that because both spouses truly own it, or because someone wanted convenience?

If a couple lives in, or moved from, a community property state, does the title accidentally interfere with a more favorable basis outcome at death? If children are named directly, does that reduce conflict—or create it? If a beneficiary has creditor, divorce, addiction, disability, or judgment risk, does the designation protect the asset to a meaningful degree?

Savers spend most of their time on investment type: stocks versus bonds, large cap versus small cap, growth versus value, domestic versus international. These decisions matter, but they are only part of the plan.

Risk management matters too. One uncovered liability, lawsuit, long-term care event, or business exposure can undo years of careful saving. Start by reviewing your registrations and beneficiaries. A little time now might save a lot of grief and expense later.