Detailed Answer
Under Virginia law, transferring assets from a brokerage account into an estate checking account usually requires that the estate representative (the personal representative) be authorized by the circuit court and provide the brokerage with proof of authority and a certified copy of the decedent’s death certificate. The basic steps are:
- Determine how the account is titled. If the brokerage account was held jointly with rights of survivorship, or named a payable-on-death (POD) or transfer-on-death beneficiary, the asset often passes directly to the surviving owner or beneficiary outside of probate and does not need estate administration. If the account was held solely in the decedent’s name, the asset must usually be collected through the probate process or pursuant to another statutory procedure (for example, a small‑estate procedure) before being deposited into an estate checking account.
- Open probate (if required) and get proof of authority. When probate is required, the executor named in the will (or an administrator appointed if there is no will) must file an administration case with the appropriate Virginia circuit court and obtain Letters Testamentary or Letters of Administration (court-issued proof of appointment). Virginia’s probate, wills, and fiduciary laws are found in Title 64.2 of the Code of Virginia: https://law.lis.virginia.gov/vacode/title64.2/
- Obtain certified copies of the death certificate. Most brokerages require one or more certified copies of the death certificate to begin account transfer or to change registration.
- Get an EIN for the estate. Banks and brokerages frequently require an Employer Identification Number (EIN) for the estate (not the decedent’s SSN) before opening an estate checking account or transferring assets. You can apply online at the IRS site: https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online
- Open an estate checking account. Present the court-issued Letters and the estate EIN to a bank to open an estate (fiduciary) checking account. Keep this account separate from personal accounts — do not commingle estate assets with personal funds.
- Provide required paperwork to the brokerage. Give the brokerage certified death certificate(s), a certified copy of the Letters Testamentary or Letters of Administration, the estate EIN, and any forms the brokerage requests. The brokerage will have an internal process and may require additional forms, signatures, or a waiting period.
- Decide on transfer method: in-kind transfer vs. liquidation. Brokerages can often transfer securities in-kind (move the shares from the decedent’s account into an account held in the estate’s name) or liquidate the positions to cash and deposit proceeds into the estate checking account. Discuss fees, tax consequences, and timing with the brokerage and, if needed, a tax advisor.
- Document all transactions and preserve records. Maintain account statements, transfer confirmations, brokerage correspondence, and receipts. These records are necessary for creditor notices, tax filings, and final distributions.
Virginia allows alternatives to full probate in limited circumstances (for example, some small personal property collections or where there is a survivor/beneficiary designation). See Title 64.2 of the Code of Virginia for the statutes governing administration, collection, and distribution of estates: https://law.lis.virginia.gov/vacode/title64.2/
What brokerages typically require from a personal representative
- Certified copy of the death certificate
- Court-issued Letters Testamentary or Letters of Administration (or equivalent court appointment)
- Estate EIN (not the decedent’s SSN)
- Completed brokerage forms for transfers or account establishment
- Identification for the personal representative
Timing and practical notes
Processing times vary. Brokerages often have compliance review steps that take days to weeks. If the assets are needed quickly to pay funeral bills or immediate obligations, the personal representative should discuss interim options with the bank and brokerage, but they must avoid improper withdrawals until they have legal authority to act on behalf of the estate.
When probate might not be necessary
If the account named a surviving joint owner or an explicit beneficiary, or was registered as transfer-on-death, the assets may pass outside of probate. Virginia also provides summary or small-estate procedures in limited circumstances; consult Title 64.2 and your local circuit court clerk about whether a summary process applies.
Key statutory reference
Virginia’s laws on wills, probate, fiduciaries, and administration are in Title 64.2 of the Code of Virginia. See: https://law.lis.virginia.gov/vacode/title64.2/
Important tax considerations
Transferring or liquidating securities triggers tax consequences (capital gains or losses, estate tax issues at the federal level). Virginia does not have a separate estate tax, but federal estate tax and income tax reporting may apply. Consult a CPA or tax attorney for tax advice.
When to get legal help
If there is any dispute among heirs, unclear account titling, missing documents, potential creditor claims, or if the estate is complex, consult a Virginia estate or probate attorney. Mistakes (such as distributing assets before settling claims) can create personal liability for the personal representative.
Helpful Hints
- Locate the will, account statements, and beneficiary forms as soon as possible.
- Order multiple certified death certificates from the Virginia Department of Health or local registrar — brokerages, banks, and government agencies often want originals.
- Contact the specific brokerage early to get their exact checklist and forms; each firm’s requirements differ.
- Apply for the estate EIN immediately after appointment to avoid delays when opening the estate checking account.
- Keep estate funds separate — open an estate checking account promptly and use it for estate expenses only.
- Ask the brokerage if it can transfer assets in-kind to the estate account to avoid triggering taxable events if immediate liquidation is not needed.
- Document every step and keep copies of court papers, Letters, and all communications with the brokerage and bank.
- Check the Virginia statutes in Title 64.2 or speak with the circuit court clerk about small-estate or summary collection procedures that might save time and expense: https://law.lis.virginia.gov/vacode/title64.2/
- When in doubt, consult a Virginia probate attorney — mistakes can be costly and time-consuming to fix.
Disclaimer: I am not a lawyer. This article provides general information about Virginia probate and estate procedures and is not legal advice. For advice about your specific situation, consult a licensed Virginia attorney.