FastCounsel

Detailed answer — how to move a decedent’s brokerage assets into the estate’s checking account in Ohio

When someone who owned a brokerage account dies, the person in charge of the estate (the executor named in the will or the administrator appointed by the probate court) generally must gather, secure, value, and account for those assets. Moving brokerage assets into an estate checking account typically means either (1) liquidating the securities and depositing the proceeds into an estate bank account or (2) transferring assets to the estate’s name so the estate can hold them intact. The exact path depends on how the account was titled and whether beneficiaries or transfer-on-death designations exist.

Step 1 — Identify how the account is owned

• If the account had a named beneficiary (payable-on-death (POD) or transfer-on-death (TOD)), the broker will usually transfer the account directly to that beneficiary without probate. In that case, the asset does not become part of the probate estate and does not go into an estate checking account.
• If the account was joint with rights of survivorship, ownership typically passes to the surviving joint owner automatically.
• If the account was owned solely by the decedent with no beneficiary designation, it is part of the probate estate and the executor/administrator must handle it under Ohio probate procedures.

Step 2 — Obtain proof of authority to act for the estate

Most brokers will not release or transfer account assets to anyone until they see documentation proving authority. That documentation is usually either:

• Letters testamentary or Letters of authority issued by the Ohio probate court naming the personal representative (executor/administrator); or
• A small‑estate affidavit or other limited collection document, if Ohio procedures permit collecting the asset without formal probate.

To obtain Letters, you must open a probate case in the county where the decedent lived and follow local procedures. The Ohio Revised Code and your local probate court explain how to start probate and get Letters.

Step 3 — Contact the broker and learn their requirements

Contact the brokerage firm and ask for their obituary/deceased account procedures. Brokers typically require:

• Certified copy(s) of the death certificate;
• Court-issued Letters testamentary or Letters of administration (or the small-estate affidavit if allowed);
• A copy of the will when necessary for probate; and
• An executor’s signature and bank information (for the estate checking account) or transfer forms for beneficiaries.

Step 4 — Open an estate checking account

Open an estate checking account in the name of the estate (for example, “Estate of [Decedent], by [Executor Name], Personal Representative”). Most banks require the probate court Letters to open that account. Keep this account separate from the personal accounts of the personal representative.

Step 5 — Transfer or liquidate assets

Once the brokerage accepts the Letters and the estate bank account is open, you generally have two options (discuss with the broker and your attorney or accountant):

• Liquidate securities and deposit the cash proceeds into the estate checking account. The broker can sell holdings and issue a check or wire to the estate account. This is common when the estate needs cash to pay debts, taxes, or expenses.
• Transfer securities into the estate’s name (register them in the name of the personal representative or the estate) so the estate can retain the investments. The broker will provide transfer paperwork and may require registration documents or estate tax paperwork.

Step 6 — Inventory, valuation, and estate accounting

The personal representative must value the brokerage assets as of the date of death for the estate inventory. If you sell, record the sale date, price, and any commissions. Keep all statements and records; the probate court and beneficiaries will expect a clear accounting of receipts and disbursements from the estate checking account.

Other practical and legal considerations in Ohio

• Small estate procedures: Ohio provides simplified collection options in some situations so certain assets can be collected without full probate. Check the local probate court rules or ask an attorney whether that applies.
• Tax matters: Brokerage transfers and sales can have federal income tax consequences (capital gains, basis adjustments). Preserve original cost basis records and consult a tax professional before large sales. Ohio currently does not impose a separate state estate tax, but federal estate tax rules and income tax rules may still apply.
• Fiduciary duty: The personal representative must act in the estate beneficiaries’ best interests when deciding whether to sell or hold assets. Avoid commingling estate funds with personal funds.
• Timing: Brokers may freeze accounts while they confirm authority. Expect some paperwork and processing time; plan estate cash flow needs accordingly.

Where to find Ohio probate forms and general statutes

For general information about Ohio probate procedure and to locate local probate court forms, start with the Ohio Revised Code and the Ohio judiciary websites. Helpful starting points include the Ohio Revised Code website: https://codes.ohio.gov/ and the Ohio Supreme Court/public probate resources: https://www.supremecourt.ohio.gov/. Your county probate court’s website also posts forms and filing instructions.

When to hire an attorney

Hire an Ohio probate attorney if the estate is complex, beneficiaries dispute actions, tax issues appear, or you are unsure whether to use simplified procedures. An attorney can:

• Help open probate and obtain Letters;
• Advise on liquidation versus retention of securities;
• Prepare estate accountings; and
• Reduce personal liability for the personal representative.

Helpful hints

• Secure the brokerage account quickly: notify the broker, request a hold on distributions if appropriate, and obtain copies of recent statements.
• Look for beneficiary designations and account titling language in the deceased person’s paperwork before opening probate.
• Get certified death certificates early — brokers and banks will request them.
• Open the estate checking account only after you have the probate court Letters (or other accepted authority) to avoid refused deposits or liability concerns.
• Keep detailed records of every transaction into and out of the estate checking account; you’ll need these for the final accounting and for tax purposes.
• Ask the broker for a written list of their required documents and forms for estate transfers so you can gather everything at once.
• Consult a CPA about tax basis and potential tax filings before selling large holdings.
• If the estate needs cash immediately and the brokerage will not liquidate, ask about temporary loans from family or other short-term solutions rather than mixing personal and estate funds.