How to Get Brokerage Account Assets into an Estate Checking Account — Detailed FAQ

Disclaimer: This is general information, not legal advice. I am not a lawyer. For advice specific to your situation, consult a Kentucky probate attorney.

Detailed Answer — step‑by‑step under Kentucky law

When someone dies, how a brokerage account becomes estate money depends on how the account was owned and what paperwork the broker needs. Below are the common ownership scenarios and the steps to move assets or proceeds into an estate checking account in Kentucky.

1) Identify how the brokerage account is titled

• Transfer on Death (TOD) / Payable-on-Death (POD) beneficiary: If the decedent named a TOD/POD beneficiary on the brokerage account, the broker usually transfers the account directly to that named beneficiary after receiving a certified death certificate and proof of identity. These assets typically bypass probate and do not become estate property.
• Joint account with rights of survivorship: A surviving co‑owner usually becomes sole owner on death. The broker will require a death certificate and proof of the survivor’s identity. Again, such assets often avoid probate.
• Account in decedent’s sole name (no beneficiary): The account becomes part of the decedent’s probate estate. A personal representative (executor/administrator) must be appointed by the probate court before the broker will release funds to the estate.

2) Contact the broker and request their checklist

Call the brokerage firm and ask for their list of required documents and instructions for a decedent’s account. Typical requirements include:

• Certified copy of the death certificate (not an uncertified copy).
• Letters testamentary or letters of administration (court appointment of the personal representative) if the account is part of the estate.
• Copy of the will (if applicable) and proof of identity for the personal representative.
• Estate tax or brokerage forms (firm-specific).

3) If the account is estate property, get court appointment of a personal representative

If the brokerage account is solely in the decedent’s name and no named beneficiary applies, you must open a probate case in the appropriate Kentucky court to become the personal representative. Probate procedures and the authority of a personal representative are governed by Kentucky probate law. For general information and forms, see the Kentucky Court of Justice probate resources: https://www.courts.ky.gov/selfhelp/Pages/Probate.aspx. For statutes on probate and administration, see the Kentucky Revised Statutes and related chapters at: https://apps.legislature.ky.gov/statutes.

4) Open an estate checking account and obtain an EIN

Once appointed, the personal representative should open a bank account titled something like: “Estate of [Decedent Name], by [Personal Representative Name], Personal Representative.” Most banks require certified letters from the probate court and the personal representative’s ID. You will also generally need an Employer Identification Number (EIN) for the estate—obtainable from the IRS: https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online.

5) Work with the broker to transfer or liquidate assets

How the brokerage moves money depends on whether you transfer securities in kind or sell them first:

• In‑kind transfer to the estate’s brokerage account: If you or the estate open an estate brokerage account, the broker may transfer the securities directly into that account (sometimes called an in‑kind transfer). That preserves holding positions but keeps the assets under the broker’s custody in the estate’s name.
• Sale and transfer of cash: The personal representative may sell securities and have the broker send cash proceeds to the estate checking account. Note sales may trigger taxable gains or losses.

6) Broker requirements and timing

Every broker’s internal compliance differs. Common realities:

• Most brokers will freeze trading in the decedent’s account until they verify authority and receive instructions.
• Certified death certificates and court appointment documents are standard requirements.
• Expect processing times—from days to several weeks—depending on how quickly you can supply documents and whether probate formalities are needed.

7) Follow fiduciary duties: pay debts and taxes before distributions

As personal representative you owe duties to pay valid debts, funeral expenses, administration costs, and taxes before distributing remaining estate funds to beneficiaries. Keep detailed records and consider getting professional tax advice—selling securities can create capital gains or losses that affect the estate’s tax filings. If you need to review Kentucky probate code in detail, see the statutes at the Kentucky Legislature site: https://apps.legislature.ky.gov/statutes.

8) Small estates and alternative procedures

Kentucky offers procedures that may simplify collection and distribution for smaller estates or where only specific assets are involved. Whether a small estate procedure applies depends on the value and type of assets and the statutes. Check Kentucky Court of Justice resources or consult an attorney to see if you qualify for a simplified collection process.

9) Final distribution and closing probate

After paying debts and taxes and completing required notices and accounting, you can distribute remaining funds to beneficiaries according to the will or the statutes of intestacy if there is no will. Then file the required closing documents with the probate court to end administration.

Helpful Hints

• Start by asking the broker for a written checklist; different firms have different procedures.
• Gather several certified death certificates early—it’s often the single most‑requested document.
• Open the estate bank account only after you have court‑issued letters appointing you as personal representative.
• Obtain an EIN for the estate from the IRS before transferring brokerage proceeds to the estate checking account.
• Keep an itemized record of every transaction and communication with the broker for the estate file.
• Consider whether in‑kind transfer makes sense: it avoids immediate capital gains but may complicate management.
• If beneficiaries exist and assets pass outside probate (TOD, joint tenancy), coordinate beneficiary claims directly with the broker—these transfers do not require probate letters.
• Consult a Kentucky probate attorney if the estate is large, contested, has complex assets, or if you are unsure about your duties and liabilities as personal representative.

Key resources:

• Kentucky Court of Justice — Probate information: https://www.courts.ky.gov/selfhelp/Pages/Probate.aspx
• Kentucky Revised Statutes (statutes search and chapters): https://apps.legislature.ky.gov/statutes
• IRS — Apply for an EIN (estate needs an EIN): https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online

If you want, provide the following facts and I can outline the likely next documents you’ll need and a short step timeline: (1) how the account was titled; (2) whether there is a will; (3) whether you already have a certified death certificate; and (4) whether any beneficiaries are named on the account.

Again: this is general information and not legal advice. Talk to a Kentucky probate attorney to confirm the procedure and documents required for your specific situation.