Bondholders have a number of ways to register their accounts. Some of the more common types of ownership include:
A form of individual ownership. Upon the death of the individual, the bond may be subject to probate proceedings.
Joint tenancy registration
A form of ownership that occurs when two or more individuals hold a bond. Upon the death of one joint owner, the survivor(s) are entitled to the entire property. This is different from tenancy in common and tenancy by the entirety.
Tenants by the entirety registration
A form of ownership recognized by certain states as an appropriate form of registration for a husband and wife which provides that, except by an act of both holders, neither husband nor wife has a disposable interest in the property during the lifetime of the other. Upon the death of either, the property goes to the survivor. This is different from tenancy in common and joint tenancy.
Tenants in common registration
A form of ownership that occurs when two or more individuals hold a bond. In this situation each holder owns an undivided interest which, upon the death of one holder, his/her undivided interest passes as such to his heirs or devisees and not to the surviving holder(s). This is different from tenancy by the entirety and joint tenancy. (See applicable definitions.)
Transfer on death (TOD) registration
A form of individual or joint tenant ownership where a beneficiary has been designated. Only one beneficiary can be designated per registration. The beneficiary has no rights in, or with respect to, the security until the security owner(s) die. Upon the death of the security owner(s), the ownership of the security passes to the TOD beneficiary. Not all states have passed statutes to allow for TOD registrations. Please check with a customer service representative if you are unsure of your state's statutes.
A form of ownership that can be established for a person who has not attained the age of majority as defined in the laws of their state of residence. Generally, it is not recommended that registrations be in a minor's name alone. A custodial registration may be created under the Uniform Transfer to Minors Act (UTMA) for your state of residence. The Uniform Transfer to Minors Act has replaced the Uniform Gift to Minors Act (UGMA) in most states for new bonds.
A form of ownership governed by a trust agreement created during the lifetime of a grantor or created under a decedent's will. The general requirements for registering securities in a trust registration include:
- the name(s) of the trustee(s)
- the name of the trust or the grantor or in the case of a trust under will, the name of the deceased
- and the date of the trust (not applicable for a trust under will)