How to Transfer Stock and Securities in Probate

To transfer stock and securities in probate, the personal representative uses the court-issued letters of administration to instruct the brokerage or transfer agent to retitle or liquidate the shares. The typical package includes certified letters of administration, a certified death certificate, a stock power, an affidavit of domicile, the estate’s tax ID number, and often a medallion signature guarantee.

Shares that already had a transfer-on-death beneficiary or a surviving joint owner skip probate entirely. The first question is always how the account was titled.

Which Securities Actually Go Through Probate?

Titling decides everything. Before gathering a single form, sort the holdings into two piles.

These generally go through probate:

• Brokerage accounts in the person’s name alone with no beneficiary designation
• Stock certificates held individually
• Mutual fund accounts with no transfer-on-death registration
• Accounts naming the estate itself as beneficiary

These generally do not:

• Accounts registered in transfer-on-death or beneficiary form
• Accounts held jointly with rights of survivorship
• Securities titled in a living trust
• Retirement accounts with a named living beneficiary

Florida specifically authorizes beneficiary registration through the Florida Uniform Transfer-on-Death Security Registration Act, sections 711.50 through 711.512, Florida Statutes. A security registered that way passes to the named beneficiary at death without probate. If you find “TOD” or “POD” on a statement, that account is likely not part of the probate estate.

What Documents Does a Transfer Agent Require?

A transfer agent is the recordkeeper that maintains share ownership for a company or fund. Brokerages handle shares held in street name; transfer agents handle shares registered directly with the issuer.

Expect to provide:

• Certified letters of administration proving your authority, often dated within a recent window such as 60 days
• A certified death certificate
• A stock power or the agent’s own transfer instruction form, signed exactly as your name appears on the letters
• An affidavit of domicile, a notarized statement of where the person lived at death
• A W-9 with the estate’s tax ID number, or the beneficiary’s Social Security number, for tax reporting
• The original certificates, if any paper certificates exist

Every transfer agent has slightly different paperwork. Call and request the deceased-shareholder packet before mailing anything, and never send original certificates without confirming the required method.

What Is a Medallion Signature Guarantee and Why Do You Need One?

A medallion signature guarantee is a special stamp from a participating financial institution that authenticates your signature and confirms you have authority to transfer the securities. It exists to prevent fraudulent transfers, and transfer agents commonly require one on estate transfers because the registered owner has died.

A few things to know:

• It is not a notarization. A notary confirms identity. A medallion stamp guarantees the signature and carries financial liability for the guaranteeing institution. They are not interchangeable, and many transfers need both.
• It comes from banks and brokerages, not from notaries. The institution must participate in a recognized program. As the SEC’s Investor.gov explains, the medallion programs include the Securities Transfer Agents Medallion Program, the Stock Exchanges Medallion Program, and the New York Stock Exchange program.
• Institutions can decline. Many banks only provide medallion stamps to existing customers, and dollar limits apply. This is the step that most often stalls an estate, so start early.

How Does the Personal Representative Move the Shares?

The sequence is fairly consistent across Florida estates:

1. Get appointed and obtain certified letters. Nothing moves without letters of administration.
2. Get an EIN for the estate from the IRS, since the estate needs its own tax ID.
3. Open an estate brokerage account. Most brokerages retitle the holdings into an estate account rather than transferring directly to beneficiaries.
4. Notify the firm or transfer agent and request their estate transfer packet.
5. Complete and guarantee the paperwork, including the stock power and any required medallion stamp.
6. List the holdings on the estate inventory at their fair market value on the date of death.
7. Distribute or sell according to the Will or Florida’s intestacy rules, once creditor obligations are addressed.

Can a Personal Representative Sell Stock During Probate?

Yes, within the authority Florida law grants. Section 733.612, Florida Statutes lists transactions a personal representative may undertake when acting reasonably for the benefit of interested persons. Among them, a personal representative may:

• Vote, or decline to vote, stocks and other securities in person or by proxy
• Pay calls, assessments, and other sums chargeable against securities
• Sell or exercise stock subscription or conversion rights

Selling can be the right call when the estate needs cash for taxes, debts, or expenses, or when beneficiaries prefer cash to shares. It carries fiduciary risk, though, because the personal representative answers for the decision. Get guidance from a probate attorney before liquidating a large position, especially where beneficiaries disagree.

What About Taxes on Inherited Stock?

Two points cover most situations:

• Basis usually resets at death. Inherited securities generally take a new cost basis equal to their fair market value on the date of death. If shares were bought for $20,000 and were worth $90,000 at death, the beneficiary’s basis is generally $90,000, so only gain above that is taxable on a later sale.
• Dividends after death are estate income. Dividends and interest the estate earns after the date of death may require the estate to file Form 1041 once gross income reaches $600.

Florida imposes no state estate tax, no inheritance tax, and no state income tax, so these are federal questions.

Frequently Asked Questions

How long does it take to transfer stock in probate?

Once you have letters of administration, a straightforward transfer often takes a few weeks. Missing medallion guarantees or lost certificates are the usual delays.

What if the stock certificate is lost?

The transfer agent can issue a replacement, typically requiring an affidavit of loss and sometimes a surety bond.

Do I need probate if the account has a named beneficiary?

Generally no. Accounts registered in beneficiary form pass directly under sections 711.50 through 711.512, Florida Statutes.

Can shares go straight to beneficiaries without an estate account?

Sometimes, but most firms prefer retitling into an estate account first, then distributing from there.

Who values the securities for the inventory?

The personal representative reports fair market value as of the date of death, usually from brokerage statements or historical closing prices.

Next Steps for Handling Estate Investments

Securities are often the largest asset in a Florida estate and the one with the most procedural tripwires, from medallion guarantees to fiduciary decisions about selling. If you are administering an estate in Oviedo or elsewhere in Central Florida, the probate team at Vollrath Law can handle the paperwork, coordinate with transfer agents, and help you avoid personal liability. Reach out to our office to get moving.

This article is for general information only and is not legal or investment advice. Requirements vary by brokerage, transfer agent, and the specific facts of each estate.