Investments in Unit Trust: Sole Account or Joint Account - Does It Matter?

As an investor, you may be already aware of the benefits of investing in unit trusts (UT), but may not pay particular attention to the setting up of your investment account. Questions such as, "Should I add a joint holder to my account as part of estate planning purpose?","Is it possible to maintain sole authority to operate a joint holder account?" or "How important is it that I remain as a first holder in a joint holder account?" deserve some consideration.

In this article, we will explore on the aspect of the treatment and operation of the UT investment account should something were to happen to you as the first holder. It is important for you to know what the arrangements are and if your loved ones can gain access to or control of your UT investments.
UT ACCOUNT WITHOUT A JOINT HOLDER OR WITH A MINOR* AS JOINT HOLDER
UT ACCOUNT WITH A JOINT HOLDER
You may have the perception that once a joint holder is named, you may lose your absolute rights over your investment account. In fact, this need not be the case. You can opt to confine the authority to operate the account to yourself as the first holder.



The advantage of naming a joint holder is that if anything happens to the first holder, the surviving joint holder (who must not be a minor) can have immediate access to the UT investment account.





In light of the above, naming a joint holder (age 18 and above) for selected UT investment accounts can be a very simple way of ensuring that your family members can have immediate access to some money should anything happen to you.

Do explore this option with your servicing unit trust consultant (UTC) to help plan for and grow your investments.


This article is prepared solely for educational and awareness purposes and should not be construed as an offer or a solicitation of an offer to purchase or subscribe to products offered by Public Mutual. No representation or warranty is made by Public Mutual, nor is there acceptance of any responsibility or liability as to the accuracy, completeness or correctness of the information contained herein.