Detailed Answer — Moving Brokerage Assets into an Estate Checking Account in Michigan

This article explains, step by step, how a personal representative (executor or administrator) in Michigan can transfer brokerage assets into an estate checking account so the estate can pay debts, taxes, and distribute assets. This is a general guide only; it is not legal advice.

Short answer: determine who controls the account (beneficiary designation, joint ownership, or solely in decedent’s name), obtain the legal authority to act for the estate (often Letters of Authority/Letters Testamentary from the probate court), open an estate bank account using that authority and an estate Employer Identification Number (EIN), then provide the brokerage with the certified death certificate, proof of your authority, and any required brokerage forms so the brokerage can transfer or liquidate the account and transfer funds into the estate checking account.

Step 1 — Identify the account ownership and how it passes

• If the brokerage account is titled TOD/POD (transfer on death/payable on death) to a named beneficiary, the beneficiary contacts the brokerage and provides the death certificate and proof of identity; the asset usually bypasses probate and transfers directly to the beneficiary.
• If the account is jointly owned with rights of survivorship, ownership typically passes to the surviving joint owner without probate.
• If the account is titled solely in the decedent’s name, the asset becomes part of the probate estate and typically requires administration through probate unless a small‑estate remedy applies.

Step 2 — If probate administration is needed, get authority from the probate court

To handle brokerage assets that are part of the probate estate, Michigan’s probate process gives a personal representative the legal power to collect assets and pay debts. In most cases you must open a probate case and be appointed by the probate court. After appointment the court issues documents (often called “Letters of Authority,” “Letters Testamentary,” or “Letters of Administration”) that brokerages accept as proof you can act for the estate.

For more information about Michigan probate procedure and forms, see Michigan Courts’ probate resources: https://courts.michigan.gov/Administration/SCAO/Pages/Probate-Forms.aspx

Step 3 — Obtain the documents the brokerage will require

• Certified copy of the decedent’s death certificate (many brokerages require an official certified copy).
• Court-issued Letters showing your appointment as personal representative.
• Brokerage-specific transfer forms (the firm will provide these). Expect a signature notarization requirement.
• Estate Employer Identification Number (EIN) from the IRS (brokerage won’t accept the decedent’s Social Security Number once assets are part of the estate for banking/tax reporting). Get an EIN from the IRS: https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online
• Photo ID and any other documents the brokerage requests (some require a certified copy of the will or additional court orders for high-value accounts).

Step 4 — Open an estate checking account

Open an account titled to the estate (for example: “Estate of [Decedent’s Name], by [Your Name], Personal Representative”). Banks will require your Letters and the estate EIN. Use this account to deposit proceeds from the brokerage (if liquidated) and to pay estate expenses, creditor claims, and taxes. Keep a separate, accurate ledger for all estate receipts and disbursements.

Step 5 — Work with the brokerage to transfer or liquidate assets

Contact the brokerage’s probate or trust department and explain that you are the personal representative. Provide the certified death certificate, Letters, estate EIN, and any brokerage forms. Common outcomes:

• In-kind transfer into an estate account at the same brokerage: the brokerage retitles the account into the estate name and directs any distributions into the estate checking account or keeps the securities in an estate account. This preserves basis and avoids immediate sale.
• Sale and transfer of cash: the brokerage sells securities and issues a check or wires funds to the estate checking account.
• Court order required: if there’s a dispute about ownership, or if the brokerage’s internal rules require it, the brokerage may ask for a court order rather than just Letters.

Special procedures and small estates

Michigan allows simplified and expedited collection methods for smaller estates and certain assets that pass outside probate. If the total probate estate is small, you may be able to use an affidavit or other simplified procedure to collect assets without formal probate. The availability and thresholds change; check Michigan probate court guidance or consult an attorney.

Tax and reporting considerations

• Get an estate EIN early — the brokerage and bank will need it for accounts and Form 1099 reporting.
• Realize that selling securities may create capital gains or losses that the estate must report on the estate tax return or final individual tax return, depending on timing.
• Michigan’s state estate/inheritance tax rules differ from federal rules. Consider consulting a tax advisor for large estates.

Typical timeline and what to expect

• Getting a certified death certificate: days to a week (sometimes longer depending on jurisdiction).
• Opening a probate estate and getting Letters: a few weeks to months, depending on court backlog and whether the will is contested.
• Brokerage processing of transfers: once supplied with all required documents, many brokerages act within a few business days to a couple of weeks, but timelines vary.

When the brokerage resists transferring assets

• Ask for a written list of the documents or specific court orders they require.
• Confirm you supplied a certified death certificate and court Letters and that the estate EIN is provided.
• If the firm claims additional requirements or refuses to cooperate, you may need a court order from the probate court directing the transfer. A probate attorney can advise and help obtain the order if necessary.

When to consult an attorney

• If the decedent’s assets are large or complex.
• If ownership is disputed (joint account claimant, beneficiary contest, or unclear titling).
• If the brokerage demands a court order or refuses to accept Letters.
• If you face potential fiduciary liability or complicated tax issues.

Helpful Hints

• Gather original and certified documents first: death certificate, will, account statements showing how the brokerage account is titled.
• Call the brokerage’s probate/trust department early to get its exact list of requirements and forms.
• Obtain an estate EIN from the IRS before asking the brokerage to retitle accounts or issue checks to the estate: https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online
• Open an estate bank account before you transfer funds and use it for all estate receipts and disbursements; keep clear, dated records and copies of every document.
• Keep copies of all communications with the brokerage, including names, dates, and what was requested or promised.
• If you’re unsure whether probate is necessary, check with the probate court in the county where the decedent lived or consult an attorney—some assets pass outside probate.

Resources

• Michigan Courts — Probate forms and information: https://courts.michigan.gov/Administration/SCAO/Pages/Probate-Forms.aspx
• IRS — Apply for an EIN online (estate EIN): https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online

Disclaimer: This article is for educational purposes only and is not legal advice. You should consult a licensed Michigan attorney or the local probate court for advice tailored to your specific situation.