Overview: Moving Brokerage Assets into an Estate Checking Account

This article explains, in plain language, how to get brokerage account assets transferred into an estate checking account under Montana procedures. It covers the common ownership types, the documents and court authority most brokerages require, the typical transfer options, and practical next steps. This is educational information only and not legal advice.

Detailed Answer: Step-by-step under Montana practice

1. Identify how the account is titled

Before you request any transfer, determine how the brokerage account is owned. Common possibilities:

• Individual account in the decedent’s name only
• Joint account with right of survivorship
• Transfer-on-death (TOD) or Payable-on-death (POD) designation
• Account owned by a living trust
• Custodial account or account with named beneficiary

Each type has different rules. If the account is joint with right of survivorship or has a valid TOD/POD beneficiary, the asset often passes directly to the surviving owner or beneficiary and usually does not become part of probate estate property that you must deposit into the estate checking account.

2. If the account is solely in the decedent’s name: you usually need court authority

If the brokerage account is solely in the name of the decedent, a brokerage will typically require proof that the person handling the estate has legal authority. That authority most commonly takes the form of Letters Testamentary (if there is a will) or Letters of Administration (if there is no will). Those letters are issued by the Montana probate court after the executor/personal representative is appointed.

To obtain Letters Testamentary/Administration, you normally must open a probate case in the appropriate Montana district court and follow Montana probate procedure. The Montana Legislature publishes the Montana Code Annotated (probate and fiduciary statutes are in Title 72). For the text of the probate statutes see the Montana Code online: https://leg.mt.gov/bills/mca/

3. Collector documents brokerages commonly require

When presenting a claim to a broker, bring:

• Certified copy of the decedent’s death certificate
• Letters Testamentary or Letters of Administration (or, if applicable, trust documentation)
• Broker-specific transfer or account release forms (broker will supply)
• Photo ID for the personal representative and bank account information for the estate checking account

Some brokerages will accept a certified court document called a “Certificate of Appointment” in place of full Letters. Call the firm first to learn its exact checklist.

4. Open an estate checking account

The personal representative should open a bank account titled for the estate (for example: Estate of [Name], by [PR name], Personal Representative). The bank will usually require the same documents: death certificate and letters or court order. Use only this account for estate receipts and payments—do not mix personal funds.

5. Options for receiving the brokerage assets

Once the brokerage accepts the estate representative’s authority, the firm typically offers two main options:

• In-kind transfer: Move the securities into a brokerage account held in the estate’s name (or into an account owned by the personal representative in their fiduciary capacity). Then, if needed, sell securities and deposit proceeds into the estate checking.
• Liquidation: The brokerage can sell the securities and send a check (or wire) payable to the estate, which you deposit into the estate checking account.

Ask the brokerage about transfer processing time, fees, and how they report transactions for tax purposes (e.g., 1099 forms).

6. Small-estate procedures and alternatives

Montana permits informal or simplified procedures in some limited cases to collect small estates without full probate. Whether you can use a simplified process depends on the size and nature of the estate and the brokerage’s policies. Check with the Montana district court clerk or a probate attorney to see if a small-estate affidavit or a summary appointment is available.

7. Tax and recordkeeping considerations

Keep accurate records of all transfers, sales, proceeds, commissions, and estate deposits. The estate may need to file income tax returns or estate tax returns depending on federal/state filing thresholds. For federal tax rules (basis step-up, reporting sales), see IRS guidance: https://www.irs.gov/

8. Timing and practical tips

Broker transfers often take days to weeks, not hours. Expect the brokerage to vet documents carefully to avoid improper transfers. Communicate early with the broker, provide complete documentation, and get written confirmation of what they will do and when.

When to hire an attorney or accountant

• If the account title is unclear or contested.
• If the estate faces creditor claims or litigation.
• If multiple beneficiaries or complex assets (e.g., retirement accounts, international securities) exist.
• If you need help with probate filings in Montana district court or with tax questions.

Helpful Hints

• Call the brokerage first. Ask their probate/estate department for a checklist and expected timelines.
• Get multiple certified copies of the death certificate at the time you file for probate; brokers usually require one per financial institution.
• Open the estate checking account as soon as you have proof of appointment from the court so you can accept proceeds promptly.
• Keep estate funds separate. Mixing estate funds with personal funds can create liability for the personal representative.
• Document every transfer and keep broker communications in writing (email or written confirmations).
• Ask the brokerage whether transfers can be done “in-kind” to avoid unnecessary sales and market timing risks.
• Consult an accountant about capital gains basis and whether a step-up in basis applies for securities sold after death.
• If the estate appears small, ask the court clerk about Montana’s simplified or small-estate procedures before starting a full probate.

Resources

• Montana Code Annotated (probate statutes): https://leg.mt.gov/bills/mca/
• Montana District Court clerk’s office (court filing and probate intake information): visit your local Montana district court website via https://courts.mt.gov/
• IRS for federal tax questions related to securities and basis: https://www.irs.gov/

Disclaimer: This article explains general procedures and common practices. It does not provide legal advice. For legal advice about a specific estate, or for help with Montana probate court filings, consult a licensed attorney in Montana.