Detailed Answer
When a person dies and leaves brokerage accounts titled in their name, the accounts often cannot be accessed or transferred by family members until the estate’s personal representative (executor or administrator) proves authority to act. Under Tennessee law, the process depends on how the account is owned and whether a beneficiary or joint-owner is named. This answer explains the usual, practical steps to get brokerage assets into an estate checking account, what documents brokers require, and when you must use probate or a small‑estate procedure.
Step 1 — Identify how the brokerage account is owned
- If the account names a payable-on-death (POD) or transfer-on-death (TOD) beneficiary, or if the account is in joint tenancy with right of survivorship, the brokerage will usually transfer the account directly to the surviving beneficiary or joint owner without probate. Contact the firm and provide a certified copy of the death certificate and the beneficiary’s ID. The asset may pass outside the estate.
- If the account is solely in the decedent’s name with no beneficiary or surviving joint owner, the brokerage will treat the account as an asset of the decedent’s estate. The brokerage will generally require proof that someone is empowered by the probate process to administer the estate before it will transfer, sell, or disburse assets.
Step 2 — Determine whether probate or a small‑estate procedure applies
If the account must pass through the estate, you will usually need either:
- Letters testamentary (if there is a will) or letters of administration (if there is no will) issued by the county probate court that prove the personal representative’s legal authority; or
- A small‑estate affidavit or summary procedure if Tennessee’s small‑estate rules apply to the estate’s total assets. Tennessee courts and local probate offices describe available simplified procedures for qualifying estates.
For general Tennessee probate information and local forms, see the Tennessee Administrative Office of the Courts probate self‑help pages: https://www.tncourts.gov/programs/self-help/probate. Tennessee’s probate and administration statutes are in Title 30 of the Tennessee Code: https://www.capitol.tn.gov/legislation/code/title30.html.
Step 3 — Obtain required documents
Most brokerages will request some combination of the following before releasing assets to an estate or to an estate checking account:
- Certified copy of the death certificate.
- Letters testamentary or letters of administration from the probate court (or a small‑estate affidavit where allowed).
- Proof of the personal representative’s identity (driver’s license, passport).
- Estate tax ID number (EIN) for the estate if the brokerage wants account registrations under the estate name. You get an EIN for the estate from the IRS (see: IRS: Apply for an EIN).
- Signed brokerage forms authorizing transfer or liquidation and naming how proceeds should be paid (for example, check payable to the estate or an in‑kind transfer into an estate brokerage account).
Step 4 — Choose how to move the assets
There are two common ways to get brokerage assets into an estate checking account:
- Liquidate securities and have the brokerage issue a check payable to the estate (e.g., “Estate of [Decedent], by [Personal Representative]”) and then deposit that check into the estate checking account. This is straightforward when you need cash for bills, taxes, or distributions.
- Transfer securities in‑kind from the decedent’s brokerage account into a new estate brokerage account that the broker opens in the name of the estate (registered to “Estate of [Decedent], by [Personal Representative]”). Once the securities are in the estate account, the personal representative can sell them or transfer proceeds to the estate checking account.
Many brokerages will only open an estate account or make transfers after they receive the documents listed in Step 3. Ask the brokerage whether they accept an original or certified copy of the death certificate and whether they accept electronically certified documents.
Step 5 — Open the estate checking account and get an EIN
Open an estate checking account in the estate’s name using the letters from the probate court, the estate’s EIN, and the personal representative’s ID. Banks commonly require the letters and the EIN. If you don’t already have an EIN for the estate, the executor should apply to the IRS. The estate checking account is the account into which brokerage checks should be deposited or from which estate expenses should be paid.
Step 6 — Document value and provide inventories
For the probate file and for estate tax reporting, the personal representative will need to inventory estate assets and state their values as of the decedent’s date of death. If you sell or transfer securities, keep records of market values, sale dates, and any brokerage statements showing the transfers.
What if the brokerage refuses to transfer?
If the brokerage will not release funds without additional proof of authority, the options commonly include:
- Obtain the probate court’s letters (or a court order) that explicitly authorize disbursement.
- Use Tennessee’s small‑estate procedure if the total estate qualifies—check local rules and courthouse forms.
- If the account incorrectly lists a beneficiary or joint owner, you may need to correct title through the firm’s internal process or, if necessary, by court order.
Timing and taxes
Plan for time: broker practices and probate timelines vary. Brokerages often take several weeks to review documents and process transfers. Also consider tax consequences: estate income, capital gains for sales after death, and estate tax filing may apply. Keep accurate records and consult an accountant familiar with fiduciary tax issues.
Quick checklist
- Locate account statements and title details.
- Get certified death certificate(s).
- File for probate and obtain letters, unless a beneficiary or small‑estate rule applies.
- Obtain an EIN for the estate.
- Open an estate checking account.
- Provide the brokerage with required documents and follow their transfer forms.
- Record values and keep all transaction records for the estate file.
Resources: Tennessee probate self‑help and forms — https://www.tncourts.gov/programs/self-help/probate. Tennessee probate statutes (Title 30) — https://www.capitol.tn.gov/legislation/code/title30.html.
When to get an attorney
You may want an attorney if:
- The brokerage disputes ownership or beneficiary claims.
- Multiple heirs contest how assets should be handled.
- The estate includes complex assets, large taxable amounts, or possible creditor claims.
- You need a court order to compel production of assets or to resolve title problems.
Helpful Hints
- Call the brokerage early. Ask their “deceased account” or “estate services” group what exact documents they require and whether they need originals or certified copies.
- Get multiple certified death certificates—brokerages, banks, and the probate court often each want copies.
- Keep a single, organized estate file (statements, funeral bills, letters from the broker, court documents, receipts) to support inventory and tax filings.
- If a beneficiary is named, confirm whether the brokerage needs a beneficiary claim form and ID rather than probate documents.
- Consider transferring securities in‑kind to an estate brokerage account if you want to avoid selling during market volatility.
- Ask your bank about endorsement rules when depositing checks payable to the estate; the check often must be endorsed by the personal representative exactly as the bank requests.
- Keep net proceeds separate in the estate checking account—do not commingle estate funds with your personal funds.
Disclaimer
This information explains general Tennessee procedures for transferring brokerage assets to an estate checking account. It is educational only and does not constitute legal advice. For advice specific to your situation, contact a licensed Tennessee attorney or your local probate court.