Overview — who can move brokerage assets and why

When someone dies, brokerage accounts owned solely by the decedent typically cannot be accessed by family members or banks until a properly appointed estate representative (executor or administrator) proves legal authority. The estate representative’s job is to gather assets, pay debts and taxes, and distribute what remains according to the will or law. To deposit brokerage proceeds into an estate checking account you generally must:

1. Establish legal authority through the Rhode Island Probate Court (letters testamentary or letters of administration).
2. Open an estate bank account in the estate’s name and get a federal tax ID (EIN) for the estate.
3. Work with the brokerage to transfer or liquidate the assets and move cash or securities to the estate account.

Step-by-step process

1. Confirm how the brokerage account is titled

Start by obtaining a copy of the brokerage statement (or contacting the firm) and confirming whether the account is:

• Owned solely in the decedent’s name (most common for probate assets).
• Joint tenancy with right of survivorship (usually passes directly to the surviving joint owner).
• Payable-on-death (POD) or Transfer-on-death (TOD) with a named beneficiary (passes to the named beneficiary outside probate).
• An account held in a trust (controlled by the trust document, not probate).

If the account passes outside probate (joint owner, POD/TOD, or trust), the estate representative usually does not need to move those assets into the estate checking account. If the account is solely in the decedent’s name, it is typically estate property and must be handled through probate unless a small‑estate procedure applies.

2. Open probate with the Rhode Island Probate Court

If probate is required, the first formal step is to open an estate case in the local Rhode Island Probate Court. The court issues documents (often called letters testamentary or letters of administration) that prove your authority to act for the estate. Rhode Island Probate Court information and local court contact details are available at the Rhode Island Judiciary site: https://www.courts.ri.gov/Courts/Probate/.

3. Get the estate’s federal tax ID (EIN) and open an estate checking account

Banks and brokerages normally require an Employer Identification Number (EIN) for the estate, not the decedent’s Social Security number. Apply for an EIN for the estate on the IRS website: https://www.irs.gov/…/apply-for-an-employer-identification-number-ein-online. After you have the court-issued letters and the EIN, open an estate checking account in a bank. Use a clear account name such as “Estate of [Decedent’s Full Name], by [Executor Name], Executor.”

4. Provide required documents to the brokerage

Contact the brokerage and ask its estate or probate department for their required list. Typical documents they ask for:

• Certified or court-stamped letters testamentary or letters of administration.
• A certified copy of the death certificate.
• The brokerage’s own transfer forms or beneficiary claim forms.
• Estate EIN and a voided check or bank letter showing the estate checking account details.

Every brokerage has its own internal requirements and paperwork. Ask for a written checklist or an email that lists everything you must send.

5. Decide whether to transfer assets in-kind or sell then deposit cash

As executor you can usually choose to:

• Transfer securities in-kind into the estate’s brokerage account (if the estate opens an account with that broker or if the broker will re-register the securities to the estate).
• Have the brokerage sell the securities and transfer cash proceeds to the estate checking account.

Consider tax consequences, temporary market conditions, creditor needs, and estate liquidity. If you re-register securities in the estate name you may need to instruct the brokerage in writing and provide the estate account details. If the estate will sell assets, confirm whether the brokerage can issue a check payable to the estate (use the estate name and EIN) and whether it can wire funds to the estate checking account.

6. Keep accurate records and update the estate inventory

Record every transfer, sale, fee, and tax withholding. You will need to prepare an inventory for the probate file and for tax filings. Rhode Island probate procedures require accounting and inventories as the case proceeds—consult the probate court’s guidance for forms, or speak with court staff: https://www.courts.ri.gov/Courts/Probate/.

7. Pay valid creditors and taxes before distribution

Before distributing funds to heirs, the executor must use estate funds to pay debts, funeral expenses, administrative costs, and any estate taxes. The brokerage may withhold taxes on certain transfers or sales—keep documentation and coordinate with your tax advisor. If estate assets are insufficient to pay debts, follow Rhode Island probate procedures for creditor claims.

Dealing with common complications

• Missing will or disputed appointment: If a will cannot be found or heirs contest the appointment, the Probate Court will resolve who becomes administrator; delays are likely.
• Small estate alternatives: Some estates qualify for simplified procedures that avoid full probate. Check the Rhode Island Probate Court for guidance on small‑estate options: https://www.courts.ri.gov/Courts/Probate/.
• Out-of-state brokerage: If the brokerage is located out of Rhode Island, it still must follow federal rules and its own policies about transferring assets; you will still need Rhode Island letters if the decedent was Rhode Island domiciliary and the account is part of this estate.
• FRCP/IRS withholding or estate tax filings: Large estates may need federal estate tax filings. Consult tax counsel when values are high.

Helpful Hints

• Start by calling the brokerage’s probate or estate department and request their written checklist—this saves back-and-forth delays.
• Get certified copies of the death certificate from the funeral home or state vital records; brokerages always want an official copy.
• Apply for the estate EIN early—some brokerages will not transfer funds without it.
• Ask whether the brokerage will wire proceeds or must issue a check. Confirm payee name format exactly (estate name and EIN) to avoid bank rejection.
• Keep originals of everything sent to the brokerage and record delivery method (certified mail or tracked courier).
• If there is urgency to pay funeral bills or creditors, explain this to the probate clerk and ask if the court can issue interim guidance or emergency letters in your jurisdiction.
• When in doubt, hire an attorney experienced with Rhode Island probate to avoid errors that can delay transfers or expose you to personal liability.