Overview

If a brokerage account owner dies, the account’s assets often must be moved into the decedent’s estate so the personal representative can pay debts, taxes, and distribute assets to heirs. In Nebraska, the process depends on how the account is titled and whether a beneficiary or surviving joint owner exists. The most common routes are: (1) a nonprobate transfer (beneficiary or joint owner), (2) transfer after a small-estate procedure (if available and applicable), or (3) formal probate with appointment of a personal representative and issuance of letters. This article explains practical steps, required documents, timing, and Nebraska resources to help you complete the transfer into an estate checking account.

How transfers typically work (simple summary)

• If the account names a Transfer-on-Death (TOD) beneficiary or Payable-on-Death (POD) payee, the broker will usually move assets to that beneficiary when presented with a death certificate and beneficiary paperwork—no probate required.
• If the account is joint with rights of survivorship, ownership usually passes to the surviving joint owner by operation of law.
• If the account is solely in the decedent’s name and there is no valid beneficiary or joint owner, the brokerage will generally require court authorization (probate) or a small-estate procedure to transfer assets into an estate checking account under control of the personal representative.

Step-by-step: moving brokerage funds into the estate checking account

1. Confirm account title and beneficiary designations. Request a copy of account statements or contact the broker to confirm whether the account has a TOD/POD beneficiary, payable-to-joint owner, or is solely owned.
2. Obtain certified copies of the death certificate. Most brokers require a certified death certificate to begin any transfer process.
3. If a beneficiary or joint owner exists, follow the broker’s beneficiary transfer process. Provide the certified death certificate, your government ID, and any broker forms they require. The broker will guide whether assets move in-kind or are liquidated and distributed to the named beneficiary.
4. If no beneficiary/joint owner exists, open an estate checking account only after you have authority from the court (or other authority allowed under Nebraska law):
   • File a probate case and be appointed personal representative (executor or administrator) by the county court handling probate matters. After appointment, the court issues Letters Testamentary or Letters of Administration—documents brokers require to transfer assets into the estate account.
   • When you have Letters, request an Employer Identification Number (EIN) from the IRS for the estate (the estate is a taxable entity while it exists). Use the IRS online form: https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online
   • Open an estate checking account in the estate’s name using the court letters and the estate EIN. Provide this bank account information to the broker when instructing them to transfer funds or proceeds into that estate checking account.
   • Present the broker with: certified death certificate, a certified copy of Letters testamentary/administration, estate EIN, broker’s transfer forms, and any required signature(s). The broker will then either transfer assets into the estate account or issue a check payable to the estate and direct-deposit to the estate account per the broker’s procedures.

Nebraska probate law and where to look

Nebraska’s probate laws cover appointment of personal representatives, duties, and authority to collect and manage estate assets. For the statutory text and procedural rules, see the Nebraska Revised Statutes, Chapter 30 (Probate Code): Neb. Rev. Stat., Chapter 30 (Probate). County probate court clerks can also explain local filing procedures and forms.

Small-estate alternatives and summary procedures

Nebraska provides procedures for smaller estates or for collecting certain types of personal property without full probate in some circumstances. Whether your estate qualifies depends on the decedent’s total nonexempt assets and specific statute or local rules. Check Chapter 30 and consult the probate court clerk for summary-administration options or small-claims affidavits that a broker may accept in lieu of formal Letters.

Documents brokerage firms commonly require

• Certified death certificate(s)
• Court-issued Letters Testamentary or Letters of Administration (if probate required)
• Personal representative’s identification (driver’s license or passport)
• Estate EIN (from IRS) when opening estate accounts
• Broker-specific transfer/claim forms (each firm has its own paperwork)
• Signed instructions from the personal representative for in-kind transfer or liquidation and routing for deposit to the estate checking account

Timing and practical considerations

• Nonprobate transfers (TOD/POD or joint accounts) can take days to a few weeks once the broker has required paperwork.
• Formal probate can take several months, depending on the complexity, notice periods, creditor claims, and whether disputes arise.
• Brokers may place temporary holds until they receive court documents or clear legal authority; be prepared for some administrative delay.
• If assets must be sold to provide cash for estate expenses, consult with the broker and a tax advisor on timing and tax consequences (capital gains basis, withholding, or estate taxes if applicable).

Tax, reporting, and bank setup

Once funds enter the estate checking account, the estate may need to file federal estate income tax returns and report transactions during administration. Obtain an estate EIN from the IRS before using the estate account: https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online. Keep detailed records of receipts, distributions, and expenses. Consult a tax advisor for federal and state tax questions.

When to consider an attorney

Consider hiring an attorney when: there are disputes among heirs, complex or high-value assets exist, tax issues are uncertain, title issues hold up transfers, multiple jurisdictions are involved, or you want help accelerating the probate process. An attorney can file probate paperwork, obtain Letters, advise on alternatives, and coordinate with brokers and banks.

Helpful Hints

• Contact the brokerage early and ask for their “estate/inherited account” checklist—most firms have a dedicated probate or estates team.
• Obtain multiple certified death certificates at once; brokers and banks often each require their own copy.
• Before selling securities, check cost basis and potential tax impacts. If the decedent held assets at a gain, consult a tax advisor about timing and basis step-up rules.
• Keep all communications in writing (email) and retain copies of forms and confirmations from the broker and bank.
• If the estate needs immediate cash for funeral or emergency expenses, ask the broker about partial liquidations after confirming authority or about expedited small-estate options with the probate clerk.
• Use the county probate court clerk as a resource for local filing rules and timeframes; they can confirm what paperwork is necessary to obtain Letters.

Resources

• Nebraska Revised Statutes, Chapter 30 (Probate): https://nebraskalegislature.gov/laws/browse-chapters.php?chapter=30
• IRS: Apply for an EIN online: IRS EIN online application

Disclaimer

This information is educational only and is not legal advice. Laws change and facts differ in every case. Consult a licensed Nebraska attorney or the county probate court for advice tailored to your situation.