Correct Registration
JOHN T. DOE, JR.
Wrong Registration
DR. JOHN T. DOE (no professional designations)
JOHN T. DOE, ESQ. (no professional designations)
MR. JOHN T. DOE (no titles)
JOHN T. DOE JUNIOR (suffixes must be abbreviated)
What is needed to transfer stock to another individual or entity?
- Stock Transfer Form with medallion signature guarantee stamp, and
- Stock certificates intended to transfer.
What is needed to transfer stock to a broker dealer?
Broker dealer have their own policies and procedures for deposit shares. Please contact the broker dealer directly.
What is needed to transfer stock from a deceased shareholder?
- Stock Transfer Form with medallion signature guarantee stamp,
- Stock certificates intended to transfer,
- Certified court document, often referred to as a Certificate of Appointment, naming the estate representative,
- Copy of death certificate,
- Notarized Affidavit of Domicile, and
- An Inheritance Tax Waiver or Inheritance Tax Waiver stamp from the state of the deceased, if required by that state.
What is an Inheritance Tax Waiver and why do I need it?
The waiver provides us with consent from the tax division of the deceased’s estate to transfer securities without charging any taxes. Most states do not require an Inheritance Tax Waiver.
Which state should I used to determine whether an Inheritance Tax Waiver is required?
The state in which the deceased shareholder was a tax resident.
What is an Affidavit of Domicile?
An Affidavit of Domicile is a sworn statement made for the purpose of securing the transfer or delivery of property owned by the decedent at the time of death to a purchaser or the person legally entitled thereto under the state laws of the decedent’s legal residence.
Joint Tenancy with Rights of Survivorship registration (abbreviated JTWROS)
With Joint Tenancy with Rights of Survivorship, tenants agree, jointly and severally, that each one of them shall have authority to deal in securities. Each tenant owns an undivided equal interest in the security. A broker or transfer agent may accept instruction from any tenant but to transfer securities all tenant’s endorsement is required. Upon the death of a tenant, the interest of the deceased tenant transfers to the surviving tenant(s) usually avoiding probate. Unlike Tenants in Entirety where tenants can only be husband and wife, there a few restrictions on who can be tenants for JTWROS.
Correct Registration
JOHN DOE AND JANE DOE JTWROS
Wrong Registration
JOHN DOE OR JANE DOE (alternative ownership is not allowed)
JOHN DOE AND JANE DOE (with any tenancy clause, this registration is considered as Tenants in Common and will go probate upon the death or a tenant)
A joint tenant is decease, what documents are needed to remove the deceased’s name from the registration?
As the name implies, upon the death of a tenant, the interest of the deceased tenant transfers to the surviving tenant(s). The surviving tenant(s) must provide:
1. Stock Transfer Form signed by the surviving tenant(s) with medallion signature guarantee stamp,
2. Stock certificates intended to transfer or re-register,
3. A Notarized Affidavit of Domicile by the surviving tenant(s),
4. A copy of the death certificate of the deceased tenant, and
5. An Inheritance Tax Waiver or Inheritance Tax Waiver stamp from the state of the deceased, if required by that state.
Both or all tenants are deceased, what documents are needed to transfer registration?
1. Stock Transfer Form signed by the legal representative of the last deceased tenant with medallion signature guarantee stamp,
2. Stock certificates intended to transfer,
3. A Notarized Affidavit of Domicile by the legal representative of the last deceased tenant
4. A copy of the death certificate of the first deceased tenant,
5. An Inheritance Tax Waiver or Inheritance Tax Waiver stamp from the state for both or all of the deceased, if required by that state, and
6. A certified copy of the certificate of appointment of the fiduciary of the last deceased tenant, dated within sixty days of the transfer.
Tenants in Common registration (TEN COM)
With this type of joint ownership registration, each tenant owns an interest in the security but unlike joint tenancy, the interest can be of an unequal amount and the each owner can freely transfer their interest without approval for any other owner. There can be any number of tenants with Tenants in Common but there are usually only two in joint tenancy. Upon the death of a tenant, their interest is not transferred to the surviving tenant(s) but rather is transferred in accordance with the deceased tenant’s estate plans.
Correct Registration
JOHN DOE AND JANE DOE TEN COM
Tenants by the Entirety registration (TEN ENT)
This type of joint ownership registration is available in most states but only for married couples. Each spouse owns an undivided equal interest in the security much like joint tenancy. Transfer requirements are the same as those for Joint Tenancy with Rights of Survivorship.
Correct Registration
JOHN DOE AND JANE DOE TEN ENT
Community Property registration (COMM PROP)
Correct Registration
JOHN DOE AND JANE DOE COMM PROP