This guide outlines how to deal with inherited deceased estate shares, and the steps to take when you want to sell them. Many people assume that stocks or shares are only acquired through direct buying and selling. However, there are other instances when stocks end up in someone’s possession through inheritance.
If an individual passes away and owns shares at the time of death, these shares end up going to a loved one or another individual via the specifics of a will. However, as you’re probably aware, many times, death happens unexpectedly, and there is no will written, which makes for poor estate planning.
What happens during these situations? Regardless of the events surrounding someone’s death, someone will always end up with the shares or stocks of the deceased. This is through probate or another form of action, which ends up affecting how the stocks are sold.
It’s not uncommon for individuals to receive deceased estate shares and not know how to sell them. Have you inherited deceased estate shares and don’t know what to do with them? Is someone you know in this situation? This article will outline the process of selling the investment deceased estate shares. The process seems complicated, but it can be simplified by having the right paperwork available.
Selling deceased estate shares
When a loved one passes away and an executor is named for the deceased individual’s assets, this person is in control of everything. This includes property, stocks, and other valuable assets that the deceased may have acquired during their lifetime. The executor must first locate where these shares are held and find a way to liquidate them. If you don’t follow the correct set of steps, selling these shares can seem impossible.
You can try as hard as you’d like; you’ll continue to run into dead ends without the right paperwork and documentation. It’s vital that the protocol is followed in the correct manner based on a timeline as well. Use the following steps for selling deceased estate shares. It’s important that you follow these steps in the exact order they’re listed.
1. Report the Death to the Broker
Your loved one’s death must be reported to the broker that holds their shares. Depending on the broker and the specifics surrounding the situation, you will be required to fill out certain forms.
At the very least, a death certificate must be certified and sent to the broker. This gives them official notice of the death of the individual that held the shares. After you’ve notified them via death certificate, you must contact them to receive additional forms that allow you to transfer or make a sale.
2. Documentation for the Broker
After the broker has been informed of the death of the shareholder, it’s important that you immediately contact them to find out what forms you must fill out. These forms will vary, depending on the specific broker.
If the stock wasn’t held in a brokerage account, you must open a new account in the name of the deceased individual’s estate. You will also need to provide documentation proving that you are the executor of the estate, giving you the right to transfer or sell any shares the deceased held.
3. Complete Forms
All the forms you receive from the broker will need to be filled out completely and accurately. It’s important to remain mindful of filling out the information correctly. Even something as simple as a misspelling can disqualify you from the entire process.
Once the forms are filled out correctly, you’ll want to get them notarised or receive a signature guarantee from a bank. Without a notary or signature guarantee, none of the paperwork will be valid. Obtaining one of these two validations will authenticate the signing of all forms.
4. Request to Transfer Shares
If the shares were originally held in a brokerage account, you might request a transfer to any different brokerage account held in the name of the executor. However, if the stocks weren’t held in a brokerage account, you must request a transfer into the account of the deceased estate’s name before you can sell.
5. Review All Sales and Taxes
After you finalise any sales, you must remain updated regarding the tax implications of these sales. Depending on the types of shares and the events surrounding the sales, you may owe a certain amount of taxes based on the final sale price of the stocks.
The process isn’t as complicated as many people make it out to be, if you produce the right paperwork. Use the following section as a guideline for the types of paperwork you might need to have when it comes to selling deceased estate shares.
Review of paperwork needed
You may need all or a portion of the following types of paperwork to move forward with selling deceased estate shares.
- You will need a copy of the will naming you executor and giving you the full rights to the shares.
- If a will wasn’t written by the deceased, you would need documentation regarding the court proceedings during probate. This documentation should clearly outline the fact that you’re entitled to these shares.
- You will need a death certificate to notify the brokers that are holding the shares you want to sell. The death certificate, including any paperwork, up to this point, must be notarised or reviewed by a bank for a signature of guarantee.
- If the documentation outlining the purchase of the shares has different information than the death certificate regarding the deceased individual’s identity, you will need further documentation to prove their identity.
- As the executor, you will need proof of your identification as well.
Obtaining the rights to sell deceased estate shares doesn’t have to be as difficult as it seems. It’s important to remain attentive when it comes to notarising all paperwork and including vital information regarding the process. Additionally, it’s also vital that you fill out and turn in all paperwork in the exact order specified by the broker and other individuals involved.
By following the steps outlined in this article, your attempt to sell deceased estate shares should go off without a hitch.
