Did you know that you can open a joint CDP and trading account? By default, most retail investors usually open an individual CDP and trading account. In my last post on "Estate planning: What happens to your assets in CDP if you pass on?", I mentioned on the procedures involved in estate settlement of equities and bonds.
Benefits of Joint Account
If you are one who has a fair amount of stock investments, you may wish to consider using a "joint account" in CDP and trading. In the event of death, the joint account allows the other surviving party to withdraw easily without having to go through the lengthy legal process for estate settlement. A joint account can be shared by 2 individuals. Some examples are: husband and wife, father and son, mother and daughter, siblings. Each joint account holder has to be at least 18 years old.
An example of a use for Joint Account
A couple can consider building a portfolio of dividend-paying stocks/interest-paying bonds in their joint CDP account. We are able to link up the joint bank account to the joint CDP account, hence dividends are directly credited to the bank account. On the other hand, the individual accounts of each person can be used for trading. Hence, this will separate your short-tern trading stocks from your long-term investment stocks.
How To Open A Joint Account
Joint CDP accounts can be opened at CDP's office at Buona Vista (The Metropolis). The opening hours for CDP are Mon - Fri 8.30am to 5.00pm, and Saturday 9.00am to 12.30pm. Alternatively, you may also open both the joint CDP accounts and joint trading accounts directly through my company. Documents required are both NRICs, and also a joint bank account number. If you are interested, please feel free to contact me.
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