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Transferring Brokerage Assets into an Estate Checking Account in Colorado

August 19, 2025 6 min read

How to move brokerage assets into an estate checking account in Colorado

Short answer: Whether brokerage assets can be deposited into an estate checking account depends on how the brokerage account is titled and whether a beneficiary or transfer-on-death arrangement exists. If the account transfers outside probate (joint tenancy, payable-on-death, or named beneficiary), the broker will typically pay the beneficiary directly after proof of death. If the account is solely in the decedent’s name with no beneficiary, the personal representative must be appointed through probate, obtain authority (letters), open an estate checking account (with an EIN), and then present the letters to the broker to have the assets retitled or liquidated and deposited to the estate account.

Detailed answer — step-by-step under Colorado law

1. Identify how the brokerage account is owned or labeled

Start by getting the account statement or contacting the broker to learn the exact title and any beneficiary/transfer-on-death (TOD) designation. Common outcomes:

  • Joint tenancy with right of survivorship — the surviving co-owner typically becomes sole owner.
  • Payable-on-death (POD) or TOD designation — the named beneficiary generally receives the assets directly without probate.
  • Account solely in the decedent’s name with no beneficiary — assets are typically probate property and require administration through the county court.

2. If the account has a beneficiary or TOD designation (non-probate transfer)

Provide the broker with a certified copy of the death certificate and the beneficiary’s identification. The brokerage’s estate or transfer desk will have a standard process and required forms. The broker will usually transfer cash or in-kind securities to the named beneficiary’s account — not to the estate checking account — unless the beneficiary is the estate itself. No probate court appointment is typically necessary.

3. If the account requires probate (solely owned, no beneficiary)

To move those assets into an estate checking account you will generally follow these steps:

  1. File a petition in the county probate court where the decedent lived to be appointed as personal representative (sometimes called executor or administrator). Colorado’s probate statutes and procedures are found in Title 15 of the Colorado Revised Statutes; basic state resources are available from the Colorado General Assembly website: Title 15 — Probate, Guardianship, and Trusts.
  2. Obtain Letters Testamentary or Letters of Administration (the court-issued document that proves your authority). The Colorado Judicial Branch provides probate forms and general procedural information for filing in the county court: Colorado probate forms.
  3. Open an estate checking account at a bank in the name of the estate. The bank will typically require the Letters and an Employer Identification Number (EIN) for the estate. Apply for an EIN from the IRS (online): IRS — Apply for an EIN.
  4. Provide the broker with a certified copy of the death certificate and certified Letters from the court. The brokerage’s estate/transfer department will provide its required forms and instructions for retitling or liquidating holdings and transferring funds to the estate account. Expect the broker to require original or certified copies and sometimes a medallion signature guarantee for transfers or disbursements.
  5. Keep full records (copies of account statements, court documents, deposit slips, and correspondence). The personal representative has a fiduciary duty to administer the estate and must keep accurate accounts.

4. Small-asset or summary procedures

Colorado offers streamlined procedures for collecting small-dollar assets without full administration in many cases. The rules and forms vary by county and situation. Check the Colorado Judicial Branch probate pages for local small-estate forms and options. If total nonexempt personal property is small, a county court may allow simplified collection — but which assets qualify and thresholds differ, so verify in your county court or with a local attorney.

5. Practical broker requirements and timelines

Brokerage firms have different internal processes. Commonly required items include:

  • Certified death certificate (several certified copies are often requested).
  • Certified Letters Testamentary or Letters of Administration.
  • Broker-specific transfer forms or beneficiary claim forms.
  • Personal identification (for the representative or beneficiary).
  • Possible medallion signature guarantee for signature-authentication on some forms.

Timeframe: allow several weeks to complete the court appointment (if required) and additional time for the brokerage to process transfers. Larger or more complex accounts can take longer.

6. Taxes and accounting

The estate may need an EIN (see IRS link above) and must file income tax returns for the decedent and possibly income tax returns for the estate. Federal estate tax may apply in large estates; Colorado currently does not have a separate state estate tax, but tax law changes can occur. Keep records and consider consulting a tax professional when assets are sold or transferred.

Helpful hints

  • Gather documents first: death certificate, account statements, the decedent’s will (if any), and any beneficiary designation forms you find.
  • Call the brokerage’s estate or transfer desk and ask for their exact checklist — firms supply specific forms and instructions.
  • Do not commingle estate funds with your personal funds. Open an estate checking account as soon as you have authority.
  • Obtain an EIN for the estate before moving funds into an estate bank account — banks usually require it.
  • Ask the broker whether they allow in-kind transfers to the estate account or require liquidation first; either option affects tax timing and portfolio management.
  • Get certified copies of the court-issued Letters; brokers and banks usually want certified copies rather than photocopies.
  • If the estate appears small or issues are limited to a few accounts, check the county court’s small-estate procedures — they may let you avoid full probate.
  • Keep precise records of every deposit, sale, and distribution; personal representatives must account to heirs and the court.
  • When in doubt about the court filing process or tax consequences, consult a Colorado probate attorney or certified public accountant licensed in Colorado.

Where to learn more (official resources)

Disclaimer: This article explains general Colorado procedure and is for educational purposes only. It does not constitute legal advice. Laws and procedures change. For guidance specific to your situation, contact a licensed attorney in Colorado or the county probate court.

The information on this site is for general informational purposes only, may be outdated, and is not legal advice; do not rely on it without consulting your own attorney.