Disclaimer: This information is educational only and is not legal advice. For guidance tailored to your situation, consult a licensed Pennsylvania attorney or the Register of Wills in the county where the decedent lived.
Overview — Who can move brokerage assets into an estate account?
When someone dies, how brokerage accounts are handled depends on how the account is owned or titled. Assets pass automatically if there is a valid beneficiary designation or joint ownership with rights of survivorship. If the brokerage account was held solely in the decedent’s name with no payable-on-death (POD) or beneficiary designation, the personal representative (executor or administrator) must collect the assets and place them into an estate checking account to pay debts and distribute assets under Pennsylvania law (see Title 20 — Decedents, Estates and Fiduciaries: https://www.legis.state.pa.us/cfdocs/legis/Laws/Index.cfm?title=20).
Quick checklist of common ownership outcomes
- Account has a beneficiary or TOD/POD designation: assets usually transfer directly to the named beneficiary — brokerage processes this without probate.
- Joint account with rights of survivorship: surviving co-owner typically becomes the sole owner.
- Solely in decedent’s name, no beneficiary: assets belong to the estate and the personal representative must collect them for the estate.
Step-by-step: Collecting brokerage assets and depositing into an estate checking account
- Locate the account documents and check registrations. Find recent account statements, the account agreement, and any beneficiary designation forms. That tells you how the broker views ownership.
- Obtain multiple certified copies of the death certificate. Brokerages and banks will usually require a certified copy. The Register of Wills or the funeral home can help you get certified copies.
- Open the estate checking account. After appointment, the personal representative should open an estate checking account at a bank. To open it you will need the decedent’s death certificate and the personal representative’s identification. The bank may also ask for the letters testamentary or letters of administration once the personal representative is appointed.
- Get appointed as personal representative (if not already appointed). If the brokerage account is titled only in the decedent’s name, the broker will typically require a court-issued document (letters testamentary or letters of administration) or court order showing the person has authority to act. In Pennsylvania the Register of Wills issues these letters after probate or informal administration is opened (see Title 20: https://www.legis.state.pa.us/cfdocs/legis/Laws/Index.cfm?title=20).
- Provide required documents to the brokerage. Typical requirements include a certified death certificate, a copy of the will (if any), letters testamentary/administration, a personal representative’s government ID, and the estate’s taxpayer identification number (EIN). The estate must have its own EIN for brokerage transfers and taxable events — obtain one at the IRS website: https://www.irs.gov/…/apply-for-an-employer-identification-number-ein-online.
- Decide whether to transfer in-kind or liquidate. The personal representative can request the brokerage transfer the positions in-kind to the estate account at the same brokerage (so the estate holds the securities), or instruct the broker to liquidate securities and deposit cash into the estate checking account. Consider liquidity needs, market risk, and estate administration expenses before selling.
- Complete transfer or liquidation requests. Follow the brokerage’s procedures. Transfers of in-kind positions generally require a transfer form plus the representative’s letters. Liquidations usually require a signed instruction and may take several days to settle.
- Record and report transactions. Keep detailed records of all transfers, sales, commissions, and deposits. The personal representative will use these records for the estate inventory, accounting to heirs, and tax filings.
- Pay estate debts and taxes before distribution. Funds in the estate checking account should be used first to pay valid debts, administration expenses, and any taxes (including Pennsylvania inheritance tax when applicable). Consult the Register of Wills and the Pennsylvania Department of Revenue for reporting requirements.
- Distribute remaining funds according to the will or intestacy. After liabilities and taxes are resolved and the court approves final accounting (if required), distribute remaining assets per the will or Pennsylvania intestacy rules.
What brokers typically require to release or transfer assets
- Certified death certificate (multiple copies).
- Letters testamentary or letters of administration showing you are the personal representative.
- Estate EIN (not the decedent’s SSN) for taxable transactions.
- Completed transfer forms or sell instructions signed by the personal representative.
- A copy of the will (sometimes requested).
Special situations and shortcuts
– If the account has a valid beneficiary designation or TOD/POD, the broker usually pays the named beneficiary without probate. Request the brokerage’s beneficiary claim forms and submit the death certificate.
– Small accounts or accounts with transfer-on-death features may be handled quickly; check the brokerage’s small-claims or transfer procedures.
– If you are unsure about the account’s registration, check the latest statements or call the broker’s estate services unit — they can explain their documentation requirements.
Pennsylvania-specific rules to keep in mind
- Pennsylvania probate and estate administration are governed by Title 20 — Decedents, Estates and Fiduciaries. The Register of Wills in the decedent’s county issues letters appointing the personal representative (Title 20).
- The estate will likely need to address Pennsylvania inheritance tax and any other state filing requirements. Check the Pennsylvania Department of Revenue for guidance on inheritance tax reporting.
Typical timeline and costs
Expect several business days to several weeks for a brokerage to complete transfers after receiving proper documentation. If probate is required to obtain letters, probate times vary by county and complexity — the process can take weeks to months. Brokers may charge fees for processing transfers or liquidating positions; the estate is responsible for those costs.
When to call an attorney
Consider consulting a Pennsylvania attorney if:
- Account ownership is ambiguous or disputed.
- There is a will contest, creditor claims, or complex estate tax issues.
- Large or unusual assets require specialized handling (e.g., restricted stock, foreign holdings).
Helpful Hints
- Start by checking the account title and any beneficiary designation on the most recent brokerage statement.
- Order several certified death certificates right away; many institutions will ask for one.
- Get an estate EIN from the IRS before requesting transfers or selling assets — don’t use the decedent’s Social Security number for estate transactions.
- Ask the brokerage for a written list of required documents and a timeline for their estate processing team.
- Keep meticulous records of all communications, forms submitted, and transactions for estate accounting and potential audits.
- Don’t commingle estate funds with personal funds; open a dedicated estate checking account as soon as you have authority to act.
- If heirs expect distributions quickly for funeral or final expenses, communicate openly about realistic timelines and the need for documentation.
- Contact the Register of Wills in the decedent’s county early to determine whether probate or informal administration is needed.
If you need help identifying the correct forms or locating the Register of Wills for a Pennsylvania county, a local attorney or the county Register’s office can provide the next steps.