Which of the following conditions must be met to send a confirmation solely to a person holding a power of attorney in a customer account?

Which of the following conditions must be met to send a confirmation solely to a person holding a power of attorney in a customer account? To send a confirmation to someone designated by a customer, the customer must make the request in writing. The customer placed a market order which was executed promptly.

Which of the following is an acceptable registration for securities held in a custodial account?

Which of the following is an acceptable registration for securities held in a custodial account? Only an individual can be a custodian. Joint custodians are not permitted, nor are partnerships or corporations allowed to be custodians. A custodial account is established under UTMA in a state with a transfer age of 21.

Which statement is true about a registered representative who wants to be appointed as trustee?

Which statement is TRUE about a registered representative who wants to be appointed as trustee for a trust account being established by a client for the client’s children? The best answer is B. The trustee over a trust account is a fiduciary who must manage the account in the best interest of the beneficiaries.

Who pays taxes on a custodial account?

Any investment income—such as dividends, interest, or earnings—generated by account assets is considered the child’s income and taxed at the child’s tax rate once the child reaches age 18. If the child is younger than 18, the first $1,050 is untaxed and the next $1,050 is taxed at the child’s rate.

How do you get money out of a custodial account?

While you can technically withdraw money from a custodial account before your child reaches the age of majority, you can only do so for the direct benefit of the child. That means any purchases must be to help your child, like buying new school clothes or braces.