Brokerage Account

A brokerage account is the everyday container for publicly traded investments. The firm holding the account — the broker-dealer — executes trades on the owner's behalf and, in most arrangements, also acts as custodian of the assets. Families typically open brokerage accounts in the name of an individual, a trust, a partnership, or another legal entity depending on how their wealth is structured.

Within a family office context, brokerage accounts are often just one layer of a broader asset picture. A family might hold taxable brokerage accounts alongside retirement accounts, private fund interests, real estate, and operating businesses. The brokerage account is usually the most liquid and most easily reported piece, but it rarely tells the whole story of family wealth.

Imagine a three-generation family with two operating businesses. The senior generation holds a taxable brokerage account in joint name with a spouse, a separate account inside a revocable trust, and a retirement account — all potentially at different institutions. Each is technically a brokerage account but carries different ownership, tax treatment, and transfer rules. This multiplicity is one reason families working through consolidated reporting find it valuable to tag each account by entity and purpose, not just by institution.

Brokerage accounts are distinct from separately managed accounts, though both may sit at the same custodian. Readers should work with qualified attorneys and CPAs to determine appropriate account ownership structures.