The U.S. Securities and Exchange Commission oversees the transfer of stocks, bonds, and other securities after an owner's death. The SEC regulates transfer agents who process ownership changes and provides investor education through Investor.gov. The Securities Investor Protection Corporation (SIPC) protects brokerage accounts up to $500,000 if a firm fails. Securities with Transfer on Death (TOD) registration bypass probate.

Death notification

When a securities owner dies, the executor or beneficiary should notify the brokerage firm and/or transfer agent as soon as possible. No account activity (buying, selling, or transferring) can occur until legal authority is established. For securities held in a brokerage account, contact the firm. For securities held in direct registration (DRS) or physical certificates, contact the company's transfer agent.

Deadline: As soon as possible; no account activity permitted until legal authority is established

Survivor benefits

The SEC offers 3 benefits for surviving family members.

Transfer on Death (TOD) Registration

Securities registered with a TOD (Transfer on Death) designation pass directly to the named beneficiary at the owner's death without going through probate. The beneficiary must submit a certified death certificate and re-registration application to the transfer agent or brokerage firm. A medallion signature guarantee may be required. TOD designations supersede the owner's will.

SIPC Protection for Brokerage Accounts

The Securities Investor Protection Corporation (SIPC) protects brokerage accounts up to $500,000 per customer (including up to $250,000 for cash) if a brokerage firm fails. Estate accounts are treated as a separate customer capacity with their own $500,000 protection limit. SIPC does not protect against market losses or bad investment advice — only against firm failure.

Amount: Up to $500,000 per customer per separate capacity ($250,000 sublimit for cash)

SEC Investor Education Resources

The SEC's Office of Investor Education and Assistance (OIEA) provides free resources on transferring assets after death, finding transfer agents, replacing lost stock certificates, and understanding medallion signature guarantees. Investor.gov is the SEC's official education portal with guides specifically for heirs and executors.

When someone dies

Notifying the SEC after a death

5-step process, 7 required documents, and 3 survivor benefits.

View details →

Frequently asked questions

A transfer agent records changes of ownership for securities, maintains shareholder records, cancels and issues certificates, and distributes dividends. Transfer agents are registered with the SEC and are usually banks or trust companies. Find a company's transfer agent through its investor relations page or the SEC EDGAR database.

A medallion signature guarantee is a special stamp that verifies the authenticity of a signature on securities transfer documents. It is NOT the same as a notary seal. Medallion guarantees are available at participating banks, credit unions, and broker-dealers. You typically must be an account holder at the institution. Three programs exist: STAMP, SEMP, and MSP.

SIPC protects brokerage accounts up to $500,000 per customer ($250,000 sublimit for cash) if a brokerage firm fails financially. SIPC does NOT protect against market losses, bad investment advice, or fraud unrelated to firm failure. SIPC covers stocks, bonds, Treasury securities, CDs, and mutual funds. Estate accounts receive their own separate $500,000 protection.

Contact the transfer agent immediately to place a stop transfer order to prevent unauthorized transfers. The transfer agent will require an affidavit describing the loss and an indemnity bond (typically 2-3% of the certificate's market value). After replacement, if the original certificate is found, notify the transfer agent immediately.

Yes. Once the executor establishes legal authority with the brokerage firm or transfer agent (using letters testamentary and other required documents), they can buy, sell, or transfer securities on behalf of the estate. The estate will receive a new account and tax identification number (EIN).

The SEC maintains the Lost and Stolen Securities Program (LSSP), a database of securities certificates reported as lost, stolen, missing, or counterfeit. When a certificate is reported missing, the broker or transfer agent reports it to the LSSP to prevent unauthorized transfers. The database is maintained by the SEC and can be accessed by transfer agents and broker-dealers to verify certificates presented for transfer.