REGISTERING SECURITIES FOR ESTATE PURPOSES

This "Financial Focus" column is prepared by Edward Jones Investments, headquartered in St. Louis. Jones includes branches throughout the nation, including Cape Girardeau and Jackson.

Whenever you open an account or purchase a security, you must decide how your account should be registered. Registration determines the ownership of your assets and how they will be handled after your death.

State laws differ on the transfer of securities, and not all states honor every type of registration. But in general, five possible registrations are available: individual registration, tenants in common, joint tenants with rights of survivorship, transfer on death and trust.

Individual registration directs the executor or other appointed representative of your estate to distribute the securities as specified in a will or by state law.

Tenants in common registration provide for at least two owners who don't necessarily have to be husband and wife. When one owner dies, his or her portion passes on to his or her estate. The other owner or owners retain their interest in the securities.

Joint tenants with rights of survivorship provides for at least two account owners. On the death of one tenant, or owner, the survivor or survivors assume full ownership. However, not all states recognize rights of survivorship.

Transfer on death registration allows an account holder to designate one or more beneficiaries to assume his or her interest at the time of the account holder's death. Transfer on death is relatively new and is not recognized in all states.

Trust registration allows for securities to be registered in the name of a trust. A trust is a legal arrangement whereby one individual or institution (the trustee) controls the property of another person (the trustor/grantor) for the benefit of a third party (the beneficiary).

Whichever type of registration is chosen, several legal documents are required on the death of a registered owner before securities can be transferred.

Before you register or re-register any securities, be sure to understand your choices and consult with your attorney or tax adviser. Proper securities registration can help your heirs avoid lengthy delays, reduce expenses and possibly avoid unnecessary tax consequences.

The Southeast Missourian does not recommend that readers buy or sell stocks featured in this column, which is provided for informational purposes only.