How To Sell an Inherited Stock Certificate

The stock market is a very interesting and potentially rewarding type of investment for someone who has enough money. The idea is simple. You just invest money in any company listed in the stock market and if that particular company earns, you also earn something commensurate to your investment. And for that reason, many have invested heavily in the stock market to earn a good living. Some even have chosen to use stock certificates as something of value to leave loved ones upon death.

Inheriting stock certificates is one thing but how to cash in on this valuable investment is another. Usually, an attorney can guide you through the ins and outs of selling your inherited stock certificates. But hiring an attorney and asking their professional counsel on how to cash in your inherited investment can cost you a lot of money. You can do this without an attorney; here are some tips on how to sell an inherited stock certificate.

  • Selling squad. Selling an inherited stock certificate might seem as simple as finding a buyer and exchanging it for money. In reality though, it takes a little preparation to do that or to complete this process. Before you go and look for a buyer make sure you have the following: a brokerage account - one for the estate and one for the heir and a transfer agent for the actual selling. With these components complete, you can now begin the process of selling your inherited stock certificate.
  • The agent of transfer. Since stocks deal with companies or financial institutions, it is vital to know the conduit of every transaction with them. This liaison is called the transfer agent. The transfer agent will facilitate any financial activity pertaining to the stock whether it be buying, selling, or even transferring. So find out who is the transfer agent to contact for your inherited stock certificate.
  • Make the sale legal. A man’s word is a man’s word. But legal paperwork is something more binding. To be able to sell your inherited stock certificate, you must get all the necessary paperwork done. The transfer agent will help you out with this one. The important thing here is the medallion signature. This serves as a guarantee for the paperwork. Now, before you visit the bank, make sure that all of your paperwork is dutifully filled out.
  • Prove the inheritance. If you inherited the stock certificate from a deceased donor, make sure that you have the right documentation. Documentation that will prove that the donor has indeed passed on to finally give you the rights to the stock certificate. You will also have to procure a certification that the death certificate is valid. And once you get the proper documentation, you have to act fast since the validity lasts only for less than a year.
  • The actual transfer. The transfer will begin with your transfer of stock form facilitated by the transfer agent. This involves changing the names for the estate. The forms should be duly signed by the required signatories. Then, the original stock together with the paperwork should be sent. This formalizes the request of the transfer of ownership. The transfer agent will take care of the changes and the movements. Get a pin number. Then call the phone customer service. Tell them that you are selling your stock. Your money will be sent within five days.

When you follow the right process, you will get the final gift from your loved one. Use it well for it is a hard earned gift from a dearly departed.


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