U.S. Securities and Exchange Commission (SEC)
How stocks, bonds, and other securities transfer after an owner's death
SEC Office of Investor Education and Assistance (OIEA)
U.S. Securities and Exchange Commission, Office of Investor Education and Assistance, 100 F Street NE, Washington, DC 20549-0213
SEC Investor Education (Transfer Assistance)
Contact Your Brokerage Firm or Transfer Agent
Transfer processing varies by firm and transfer agent; TOD transfers typically process within 2-4 weeks after documents are received
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.
Notifying the SEC when someone dies
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.
Timeline: As soon as possible; no account activity permitted until legal authority is established
- •Brokerage account (street name): contact the brokerage firm
- •Direct Registration System (DRS): contact the company's transfer agent
- •Physical certificates: contact the transfer agent named on the certificate
- •Find the transfer agent through the company's investor relations page or the SEC EDGAR database
- •Provide a certified copy of the death certificate
- •Provide letters testamentary or letters of administration
- •No account activity can occur until legal authority is established
- •The firm will freeze the account and open an estate or beneficiary account
- •Certified death certificate
- •Letters testamentary or letters of administration (court-issued)
- •Affidavit of domicile (confirms the deceased's state of residence)
- •Medallion signature guarantee (from a participating bank, credit union, or broker-dealer)
- •W-9 or EIN for the estate (for tax reporting on the new account)
- •Inheritance tax waiver (required in some states)
- •TOD securities bypass probate and transfer directly to the named beneficiary
- •The beneficiary submits a certified death certificate and re-registration application
- •A medallion signature guarantee may be required
- •TOD designations supersede the deceased's will
Required Documents
- Certified copy of the death certificate
- Letters testamentary or letters of administration
- Affidavit of domicile (state of residence at death)
- Medallion signature guarantee (not a notary seal)
- W-9 or EIN for the estate
- Stock power or power of attorney for stock (for physical certificate transfers)
- Inheritance tax waiver (in states that require it)
Timeline
Transfer processing varies by firm and transfer agent; TOD transfers typically process within 2-4 weeks after documents are received
Survivor benefits
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.
Eligibility: Named TOD beneficiary on the securities account
How to apply: Submit a certified death certificate and re-registration application to the transfer agent or brokerage firm
Learn more →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.
Eligibility: Customers of SIPC-member brokerage firms (over 3,200 U.S. firms)
Amount: Up to $500,000 per customer per separate capacity ($250,000 sublimit for cash)
How to apply: SIPC claims are initiated by a court-appointed Trustee when a firm fails; claim forms are mailed to all customers
Learn more →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.
Eligibility: Any investor, heir, or executor
How to apply: Visit investor.gov or contact OIEA at 1-800-732-0330 or Help@sec.gov
Learn more →Frequently asked questions
How securities transfer depends on how they are held. Securities with a Transfer on Death (TOD) designation pass directly to the named beneficiary without probate. Securities in a brokerage account are transferred through the estate process — the executor contacts the firm with legal authority documents. Physical certificates must be re-registered through the company's transfer agent.
TOD registration allows securities to pass directly to a named beneficiary at the owner's death without going through probate. Most states have adopted the Uniform Transfer-on-Death Security Registration Act. A TOD designation supersedes the owner's will. The beneficiary must still submit a death certificate and re-registration application to complete the transfer.
Check brokerage statements, tax returns (Form 1099-DIV for dividends, 1099-B for sales), and safe deposit boxes. For unclaimed or dormant accounts, securities may have been escheated to the state — search at MissingMoney.com or contact the state's unclaimed property office. States hold escheated property indefinitely and heirs can file claims at any time.
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.
Sources
Data sourced from U.S. Securities and Exchange Commission primary sources (10 pages reviewed). How we research.
SEC Office of Investor Education and Assistance (OIEA)
U.S. Securities and Exchange Commission, Office of Investor Education and Assistance, 100 F Street NE, Washington, DC 20549-0213
SEC Investor Education (Transfer Assistance)
Contact Your Brokerage Firm or Transfer Agent
Transfer processing varies by firm and transfer agent; TOD transfers typically process within 2-4 weeks after documents are received