How to move brokerage assets into an estate checking account under Indiana law

Summary: When someone dies, assets in a brokerage account do not automatically become part of an estate checking account. The steps depend on how the account was titled, whether a beneficiary designation exists, and whether a probate administration is required. Below is a clear, step‑by‑step explanation of how to get brokerage assets into an estate checking account in Indiana, what documents you will need, and when you must open a formal estate account under court supervision.

Detailed answer

1. Identify how the brokerage account is owned

Start by determining the account registration and any beneficiary designations. Common possibilities:

• Individual account in the decedent’s name only (likely needs probate).
• Joint account with right of survivorship (survivor usually keeps the account without probate).
• Transfer on Death (TOD) or Payable on Death (POD) beneficiary designated — the named beneficiary can claim the assets directly without probate.
• Trust-owned account — trustee follows trust terms and may avoid probate.

If the account passed by beneficiary designation, TOD, or joint tenancy, the brokerage will typically transfer ownership to the named survivor or beneficiary on presentation of a death certificate and identification. If no beneficiary or joint owner exists, the brokerage account will generally be part of the decedent’s probate estate.

2. Gather the documents the brokerage will request

Most brokerages require:

• Certified or official copy of the death certificate.
• Account statements and account number.
• Copy of the will (if one exists) and contact information for the executor listed in the will.
• If the estate has a court appointment, a copy of the Letters Testamentary or Letters of Administration (sometimes called Letters of Personal Representative).
• Personal identification for the person requesting action.

3. If the account is probate property: obtain appointment from the probate court

If the brokerage account is titled solely in the decedent’s name and no beneficiary exists, the personal representative (executor named in a will or an administrator appointed by the court) must be appointed by the probate court before the brokerage will transfer or liquidate estate assets. In Indiana, probate and appointment of personal representatives are governed by the Indiana Probate Code (Title 29). For general statutory guidance, see the Indiana Code, Title 29: https://iga.in.gov/legislative/laws/2023/ic/titles/029. For practical court procedures and probate self‑help materials, see the Indiana Judicial Branch probate page: https://www.in.gov/judiciary/selfservice/probate/.

Typical sequence:

1. File a petition for probate in the county where the decedent lived.
2. Provide notice to heirs and creditors as required by law.
3. Receive court appointment and Letters Testamentary or Letters of Administration.

4. Open an estate checking account

After appointment, open an estate checking account at a bank in the name of the estate (for example, “Estate of [Decedent Name], by [Personal Representative Name], Personal Representative”). The bank will require the letters of appointment, a copy of the death certificate, and ID for the personal representative. This account is separate from the personal accounts of the personal representative and must be used to receive estate funds and pay estate expenses, taxes, and distributions.

5. Transfer or liquidate brokerage assets into the estate account

Once you have the letters of appointment, contact the brokerage and provide the required paperwork (death certificate, letters, bank info for the estate checking account). Two common methods to move value into the estate checking account:

• Sell the securities inside the brokerage account and request a check or wire payable to the estate. Deposit that into the estate checking account.
• If the estate needs to keep assets in kind, ask the brokerage whether it can transfer assets in kind to an estate brokerage account that is opened in the estate’s name; then liquidate or manage the assets from that estate brokerage account. Not all brokerages will move securities directly into a bank checking account in kind.

Brokerage firms vary in their operational processes and timelines. Some will require a separate estate account at the same brokerage. Others will issue a check payable to the estate that you deposit in your estate bank account. Ask the brokerage what exact forms they require and whether there are transfer or liquidation fees.

6. Consider small‑estate procedures (when probate can be avoided)

Indiana has procedures that can simplify administration for smaller estates in certain circumstances. If the total value of the estate (or the value of assets held by the brokerage) falls under the statutory small‑estate thresholds or if an affidavit procedure applies, you may be able to collect assets without full probate. For instructions on small‑estate procedures and court forms, check the Indiana courts page above and discuss the threshold with a probate attorney or the clerk’s office. If you rely on a small‑estate affidavit, the brokerage will want to review the affidavit along with a death certificate.

7. Keep careful records and follow fiduciary duties

When you act as personal representative you have a fiduciary duty to the estate and the beneficiaries. Keep detailed records of all communications, transfers, sales, receipts, and distributions. Maintain clear separation between estate funds and any personal funds. You will need these records for final estate accounting, tax reporting, and to defend your actions to beneficiaries or the court if questioned.

8. Tax and reporting considerations

Selling assets can create capital gains or losses for the estate or beneficiaries depending on timing and basis. The estate may need to file a federal estate tax return only if the estate exceeds federal filing thresholds; Indiana does not currently impose a state estate tax. For help with tax filing and basis calculations, consult a tax professional. Keep in mind brokerage houses may issue 1099s in the year of sale or transferable events.

Helpful hints

• Before contacting a brokerage, get a certified copy of the death certificate from the funeral director or county vital records office—brokerages almost always require it.
• Call the brokerage’s probate or estate department first and ask for a checklist of required forms and acceptable proof of the personal representative’s authority.
• If the account shows a TOD beneficiary, ask the brokerage how the beneficiary claims assets; the beneficiary typically needs only a death certificate and ID.
• Open the estate checking account only after you are appointed by the court (or if the bank accepts a small‑estate affidavit where applicable).
• Ask the brokerage if it can wire sale proceeds directly to the estate checking account to speed access to cash for paying estate bills and taxes.
• Get multiple certified copies of the death certificate—brokerages, banks, and other institutions often insist on originals or certified copies.
• Document every step: who you spoke to, the date, and the documents you submitted.
• If the estate is complex or if beneficiaries dispute the process, consider hiring an Indiana probate attorney to avoid mistakes that can lead to personal liability.

Where to look for official guidance

Indiana statutes governing probate and personal representatives are in Title 29 of the Indiana Code: https://iga.in.gov/legislative/laws/2023/ic/titles/029.

Practical probate forms and self‑help materials are available from the Indiana Judicial Branch: https://www.in.gov/judiciary/selfservice/probate/.

Final note and disclaimer

This article explains general steps commonly used in Indiana to move brokerage account value into an estate checking account. It is educational only and is not legal advice. Probate rules and brokerage requirements vary with facts and over time. For advice specific to your situation, contact a licensed Indiana attorney or the probate court clerk in the county where the decedent lived.