Question: I am retired and have been living happily with a woman, also retired, for several years. We do not plan to marry because our Social Security benefits would drop if we did. (My friend collects SS earnings based on a former spouse.) We both enjoy following the stock market. I have an account with BUYandHOLD but wonder if we can also open a joint one?

Don M

Answer:

Dear Don,

Yes. You may open a joint account provided you fill out the account application form online. This form requests information (for both you your unmarried partner) covering such things as your net worth (including other investments, savings and real estate) and your annual income. We will also need both of your Social Security numbers.

With a joint account, should one of you die, the account will pass directly to the other account owner, and not to any children either of you may have.

Several other points to keep in mind...

• If you have an IRA or 401(k) plan, that account will go to the person specifically named as its beneficiary. That might be your partner, your children or someone else. (These assets will pass outside your probate estate.)

• Similarly, you can name your partner as beneficiary of your life insurance and annuities, if you so wish.

• If you and your partner own real estate, or plan to, it’s important to decide if you wish for each of you to receive the entire property upon the death of the other.
  
  If so, to accomplish this, you must own the property as “joint tenants with right of survivorship.” Then, upon the death of the first owner, the survivor automatically becomes the owner of the entire property.

• Finally, remember that you can give up to $12,000 each year as a gift, tax free, to anyone, including your partner.

BUYandHOLD does not recommend any securities. The securities mentioned above are being used for illustrative purposes only and should not be regarded as an offer to sell or as a solicitation of an offer to buy.