Types of Accounts
Individual Account:
Standard online brokerage account used for an individual. Margin accounts are also available for those who qualify.
Joint Account:
Account jointly owned and used by two or more individuals. There are two types of joint accounts available, both of which are subject to the laws of your state of residence:
I. Tenants with Rights of Survivorship: If one of the joint owners dies, his or her interest passes to the surviving owner(s). This is the default category for joint accounts at McGinnSmith.
II. Tenancy in Common: If one of the joint owners dies, his/her interest passes to his/her estate instead of the other partners in the account.
Non-US Resident Account:
McGinnSmith has made great strides in facilitating the investment abilities of non-US resident investors, including US IPO investments. There are, however, the followig two additional forms required for non-US residents:
I. W-8form: Required for all individuals that do NOT have a US tax identification number.
IRA Account: Individual Retirement Accounts (IRAs) provide investors with an account specifically designated to be used after retirement with varying types of tax benefits and deferments. (Click here for additional IRA and Retirement Account Options.)
Trust, Estate, or Conservatorship Account: Account in which the securities are registered in the name of the trust, estate, or conservatorship and managed by a trustee(s), executor, or conservator. Note: Margin and options trading are allowed only if the trustee has the express legal authority to do so.
Corporate, Non-US Corporate, Sole Proprietorship, or Limited Partnership Account: Account used by a business to invest assets held by that business. Note: Margin and options trading are allowed only if specified by the charter of the organization. Businesses wishing to open a corporate account should be prepared to supply corporate financials and other proof of corporate status along with the account application (e.g., Articles of Incorporation, Papers of Resolution, etc.).
Custodial Account: Account held in trust for a minor by a custodian. Custodial accounts may be opened in compliance with the Uniform Transfer to Minors Act (UTMA) or the Uniform Gifts to Minors Act (UGMA), depending on the state in which the gift or transfer is made. The account may be funded up to $10,000 per year ($20,000 per year for couples) without being subject to federal gift taxes. Please contact a tax advisor regarding your specific tax situation.
Investment Club Account: Account used by a group of people to pool their assets and make joint investment decisions. The investment club must have its own tax ID number. If you have questions about this type of account, you may want to consult an attorney.
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