ownership title for a brokerage account

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Topic Author
RMWinCalifornia
Posts: 1
Joined: Thu Jan 13, 2022 2:03 pm

ownership title for a brokerage account

Post by RMWinCalifornia »

My wife and I have a brokerage account at Fidelity that is described as "Joint Tenants in Common". Our marriage is stable, no prior marriages or children by others. We recently changed the ownership title on our house to Community Property w/ Right of Survivor-ship because of the benefit of step-up of basis for California real estate to reduce capital gains tax.
Do brokerage accounts also follow the same way as real estate when one of us dies? Mutual funds in that account have appreciated, but there is also the possibility that a major market crash will take them to a loss. How is the best way to "hold title" of a brokerage account for consideration of a capital gains rise?

The IRA and 401(k) accounts let us name beneficiaries, but the brokerage account does not seem to have that option. What happens if both my wife and I die in the same accident?
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