How to move brokerage assets into an estate checking account (New Mexico)

This FAQ explains, in plain language, how brokerage account assets typically get moved into an estate checking account in New Mexico. It covers common situations (accounts with beneficiaries, joint accounts, and accounts owned only by the decedent), the documents most brokerages require, the probate route, and faster alternatives when available.

Disclaimer

This is educational information only and not legal advice. For advice tailored to your situation, consult a licensed New Mexico attorney.

Quick answer

To move brokerage assets into an estate checking account you usually must either: (1) provide the brokerage with a beneficiary or transfer-on-death (TOD) claim plus a death certificate; (2) have the surviving joint owner request transfer and provide a death certificate; or (3) if the account is solely in the decedent’s name, present the brokerage with the court-issued letters testamentary or letters of administration (the personal representative’s paperwork) and a certified copy of the death certificate. Some small estates can use an affidavit process instead of full probate.

Detailed answer — step-by-step

1. Determine account ownership and any beneficiary designation.
   • If the account has a named beneficiary or a Transfer-on-Death / Payable-on-Death (TOD/POD) designation, the beneficiary can submit the brokerage’s beneficiary claim form plus a certified death certificate to get the account transferred or distributed without probate.
   • If the account is a joint tenancy with right of survivorship, the surviving joint owner typically produces a certified death certificate and the broker transfers title to the survivor.
   • If the account is solely in the decedent’s name with no beneficiary, the brokerage will usually require proof that someone is authorized to act for the estate (see step 3).
2. Collect required documents.

   Common items brokerages ask for:

   • Certified copy of the death certificate (most brokerages want a certified copy rather than a photocopy).
   • ID for the person requesting transfer.
   • If beneficiary or TOD: the brokerage’s beneficiary claim or transfer forms.
   • If acting for the estate: court-issued letters testamentary or letters of administration (or small estate affidavit where permitted).
   • Account number and recent account statement.
3. If the account requires estate authority, open an estate checking account and start probate (if needed).

   If you must administer a decedent’s estate in New Mexico, file the appropriate probate petition in the district court in the county where the decedent lived. When the court appoints a personal representative, the court issues letters (letters testamentary if there was a will, letters of administration if not). The personal representative uses those letters to open an estate checking account and to present to financial institutions when collecting and distributing assets.

4. Present the documents to the brokerage.

   Give the brokerage the certified death certificate and either the beneficiary/TOD form or the court letters. Brokerages process transfers differently—some will transfer securities in kind into the estate’s brokerage account; others will sell holdings and send proceeds to the estate checking account. Confirm whether the broker will transfer assets in kind or liquidate them.

5. Move funds into the estate checking account.

   Once the brokerage accepts the documentation, it will either (a) retitle the account to the estate or to the personal representative, (b) transfer securities to an estate brokerage account, or (c) liquidate and wire or send a check to the estate checking account. Keep records of all transfers, sales, and receipts.

6. Complete estate administration tasks.

   The personal representative will use estate funds to pay debts, taxes, and administrative expenses, then distribute the remainder according to the will or New Mexico intestacy rules.

Special situations

Accounts with beneficiary or TOD designation

Beneficiaries generally bypass probate. The broker requires a certified death certificate, beneficiary form, and ID. After validation, the broker transfers assets to the beneficiary’s account or issues a distribution check.

Small estates (affidavit process)

New Mexico provides procedures for small estates or limited-amount collections that can avoid full probate in some cases. Check New Mexico Courts resources for small estate forms and instructions. If eligible, you may use an affidavit to collect assets from some institutions rather than obtaining letters from the court.

Brokerage refuses or delays transfer

Request a written explanation of the brokerage’s requirements. If the broker incorrectly refuses to recognize a valid beneficiary, joint ownership right, or proper letters from the court, you may need help from an attorney or to escalate through the brokerage’s estate services desk.

Where to find New Mexico forms and official guidance

• New Mexico Courts — Probate and estate self-help information and probate forms: https://www.nmcourts.gov/self-help/probate/
• New Mexico Statutes and legislative materials (search for the New Mexico Probate Code / Chapter 45): https://www.nmlegis.gov/Legislation/Statutes

Helpful hints

• Order several certified copies of the death certificate early — brokerages, banks, and government agencies each often require their own certified copy.
• Contact the brokerage’s estate or trust department before filing probate — they can tell you exactly which documents they will accept and whether they will retitle or liquidate assets.
• Look for TOD/POD designations and check beneficiary designations on retirement and brokerage accounts — beneficiary designations override wills for those accounts.
• If you expect to sell securities, ask the brokerage about timing, sale settlement, capital gains records, and possible tax reporting.
• Keep detailed records: account statements, correspondence with the broker, copies of forms, and receipts for funds moved into the estate checking account.
• If the estate is likely to be complex or contested, consult a New Mexico probate attorney early to avoid costly mistakes and delays.
• Confirm whether the brokerage charges fees for transfers or account retitling and who pays those fees (estate vs. personal representative).

Typical timeline

Timelines vary. If there is a beneficiary or joint account, transfers can take days to a few weeks after submission of paperwork. If probate is required, the process depends on court schedules and can take months. Small estate procedures can often shorten collection timeframes.

When to get legal help

Consider consulting a probate attorney if:

• The brokerage refuses to accept valid documents;
• The estate includes complex securities or foreign assets;
• Family members dispute ownership or distributions; or
• Tax, creditor, or fiduciary duty issues arise.

For local court forms and step-by-step instructions about opening probate and getting letters to present to financial institutions, see New Mexico Courts’ probate self-help page listed above.