Question

Gigi and her boyfriend Gabe opened a brokerage account together 10 years ago and titled the account Joint Tenants with Rights of Survivorship. Each contributed $5,000. When Gigi died this year the account's total value was worth $200,000.

What is Gabe's new cost basis in the account after Gigi's death?

Answer 1

A brokerage account is an arrangement where an investor deposits money with a licensed brokerage firm, who places trade on behalf of the cuatomer.

A joint brokerage accounts have two or more accountholders listed on them. These accounts allows multiple people to have control of an investment account,

when joint brokerage account having joint tenants with rights of survivorship both the owners have equal rights to the account. If one owner dies, the survivor will automatically receive the decedents share of the account.

Cost basis account balances includes purchase prices adjusted for stock splits, dividends and return on capital.

SUMMARY

Gabe's new cost basis in the account after Gigi's death would be $200000 including Gigi's share.