I would like to open a joint IBKR account for my wife and me. It will hold all assets purchased (from my salary) since start of our marriage.
IBKR allows to choose 3 different options for joint accounts: tenants in common, community property, joint tenants with right of survivorship.
I would like to choose one that we own the assets in common and in the case of death by either of us, the respective testament applies to deceased’s 50% share.
For those who opened a joint account, which option did you select and why? Does it even matter for non-US citizens?
In our case we chose joint tenancy with right of survivorship for our joint IBKR account. Main reason was simplicity (no need to figure out who should be recipient), considering that we share the FIRE goal and the money we’re investing in that account is earmarked for that.
I guess our choice would differ if any of us had descendants that the other wasn’t tied to (e.g. children from previous relationship) since we would certainly want to ensure they got a fair share. For any common descendants we trust each other to do the “right thing”, although we haven’t come up with a strict definition.
In practice, except if dealing with a premature and unforeseen death, we would probably empty and close the account in advance to avoid the paperwork and potential complications of using a foreign broker and having foreign positions. Easy to say now, not something any of us hopes to face