A trust is an account in which the securities are registered in the name of the trust rather than the names of the individual trustees, or account managers. Trusts allow individuals, corporations and financial institutions to pass on assets to individuals, foundations and charities.
Account trustees must be 18 years or older. If the trustee is a bank or financial institution, Scottrade requires either a Corporate Account Certificate or a Corporate Resolution drawn up by the institution showing who the responsible officers are.
Estate accounts hold securities in the name of the estate and are managed by an executor. These accounts minimize legal proceedings upon the death of an individual, and they allow that person to pass on assets to individuals, foundations and charities. Estate accounts also take advantage of new tax changes that will effectively eliminate the estate tax beginning in 2010.
Investment Clubs allow groups of investors to come together and pool their investing knowledge and assets to make joint investing decisions.
Corporate accounts are held by a corporate entity.
Limited Liability Company
Companies that are set up as Limited Liability Companies (LLCs) may set up corporate accounts. LLCs are business entities that offer limited liability protection and pass-through taxation.
Limited Liability Partnership
Limited Liability Partnerships (LLPs) and Limited Liability Limited Partnerships (LLLPs) may set up partnership accounts.
Partnership/limited partnership accounts are available to Partnerships, Limited Partnerships and Family Limited Partnerships. Partnerships, Family Partnerships and Limited Partnerships require all general partners to sign the account forms.
Organizations structured as associations or other non-corporate entities may open an association or non-corporate organization account.
This material is for informational purposes only. Contribution and income limits are subject to change without notice. Please consult your tax or legal advisor(s) for questions concerning your personal tax or financial situation.
Investors opening standard accounts may be considered Professional Subscribers if certain conditions are met, which include the type of account being opened and/or an account holder's occupation. For assistance in determining your subscriber status, please read the Knowledge Center article Subscriber Status or contact local Scottrade team.