Detailed answer: step-by-step explanation under New Jersey law

The short answer: who controls the brokerage account after a person dies depends on how the account is titled. If the account was owned solely by the decedent, you generally need court authorization (letters testamentary or letters of administration) or a surrogate-approved small-estate procedure before a broker will transfer assets into an estate bank account. If the account had a named transfer-on-death (TOD/payable-on-death) beneficiary or joint owner with rights of survivorship, the account may pass outside probate.

1. Identify account ownership and beneficiary designations

Look at the broker records to determine how the account is titled:

• Single-owner account with no beneficiary: typically an asset of the probate estate.
• Account with a named beneficiary or Transfer on Death (TOD): usually passes directly to that beneficiary outside probate — the broker will pay or retitle to the beneficiary after documentation.
• Joint account with rights of survivorship: the surviving owner usually becomes the sole owner and the broker will update title.

Start by ordering the decedent’s account statements and locate the current account registration and any beneficiary or TOD forms.

2. If the account is part of the probate estate, obtain authority to act for the estate

For a solely owned account, the broker will expect proof that someone is authorized to manage estate assets. In New Jersey that proof usually comes from the surrogate’s office in the county where the decedent lived:

• If there is a will and an executor named in it, that person needs Letters Testamentary issued by the surrogate (proof of appointment).
• If there is no will, an administrator is appointed and receives Letters of Administration.
• For small estates, New Jersey provides procedures that may permit distribution without formal administration — check the Surrogate’s small estates guidance for forms and thresholds.

Learn the New Jersey courts’ probate and small-estate information here: New Jersey Courts — Wills & Estates and Small Estate Procedures (NJ Courts).

3. Open an estate checking account

Once you have the surrogate’s letters (or other authorized paperwork), open an estate checking account in the name of the estate at a bank. The bank will generally require:

• Certified or original Letters Testamentary or Letters of Administration (or small estate paperwork where accepted).
• Certified copy of the decedent’s death certificate.
• Tax ID (EIN) for the estate from the IRS (banks usually require the estate to have its own EIN rather than using the decedent’s SSN).

To obtain an estate EIN, use the IRS online EIN application or Form SS-4. The IRS has guidance on estates and trusts and applying for an EIN.

4. Provide the broker the paperwork they require

Each brokerage firm has its own procedures. Typical requirements include:

• Original or certified copy of the death certificate.
• Letters Testamentary / Letters of Administration or surrogate authorization, or proof of beneficiary/TOD designation.
• Broker-specific transfer forms — the broker may require an internal transfer or an account retitling form.
• Medallion signature guarantee for certain transfers of securities, if you are transferring certificates or re-registering securities in the estate’s name.

Ask the broker whether they will:

• Transfer securities in-kind into a brokerage account titled in the estate’s name (preferred if you want to keep positions).
• Liquidate securities and issue a check payable to the estate for deposit in the estate checking account.

Some brokers will transfer to an estate brokerage account after seeing letters; others require securities to be liquidated first. Expect the broker to take time to verify documents; plan for several business days to a few weeks.

5. If the estate will liquidate assets

If you (as executor/administrator) choose to sell some or all securities to fund estate expenses, taxes, or legacies, follow prudent steps:

• Get authorization under the will or court order as needed.
• Document sales carefully and record proceeds as estate property deposited to the estate checking account.
• Keep records for inventories and for tax reporting (capital gains, income earned before/after death, and any New Jersey inheritance/estate obligations).

6. Accounting, inventory, and filings

New Jersey surrogate rules require an inventory and accounting for most estates. Maintain precise records showing transfer or sale of brokerage assets and deposits into the estate checking account. The surrogates’ office and beneficiaries will expect clear documentation. See the Surrogate’s Office resources on inventories and estate administration here: NJ Courts — Wills & Estates.

7. Special situations

– If the account is titled as TOD/Transfer on Death: the broker will usually distribute to the named beneficiary upon presentation of a death certificate and beneficiary ID — probate is typically not required.
– If the account is jointly owned without rights of survivorship: ownership rules depend on the account agreement; check the broker’s documentation.
– If the broker or transfer agent uses DTC/ACATS systems: they will provide institutional transfer instructions; a medallion guarantee may still be required for re-registration.

8. Who to call for help

– The brokerage firm’s estate or client services department (ask for their deceased-account procedures).
– The county surrogate’s office where the decedent lived — for filing a probate petition, obtaining letters, and small-estate guidance: NJ Courts — Surrogate & Probate Information.
– A New Jersey probate attorney if the estate is complex, contested, or involves substantial assets.

Helpful Hints

• Find the original account statement and beneficiary designation form before contacting the broker.
• Order multiple certified death certificates early — the broker, bank, and other institutions will each want originals.
• Open the estate checking account only after you have the surrogate’s letters or small-estate authorization accepted by the bank.
• Ask the broker for a written list of required documents and a contact person — different firms have different requirements.
• Expect to provide an estate EIN for the estate checking account — do not use the decedent’s SSN for ongoing estate banking.
• Keep an exact paper trail: dates of transfers, account numbers, confirmation numbers, and copies of everything you send to institutions.
• If securities are illiquid or restricted, contact the broker and a probate attorney to decide whether to obtain a court order allowing sale or transfer.
• Check whether New Jersey inheritance tax or federal estate/income tax reporting applies before distributing assets to beneficiaries.