How to Sell Stock From a Deceased Spouse
The loss of a spouse can be devastating. It is not unusual for the surviving spouse to have trouble sleeping, to refuse to eat, to have problems with concentration or to have a difficult time in making decisions. However, there are many important steps to take after a spouse passes away, not the least of which is to settle any financial issues that remain. One of the issues may be the liquidation of stock holdings. Transferring and selling stock from a deceased spouse can be a complicated process.
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Instructions
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Determine how the stocks are held. Stocks can be held electronically by brokerage firms or as physical certificates.
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Determine how the brokerage account or certificates are titled. If the account or certificates are titled as a joint tenant account with the surviving spouse or in the name of the family trust with the surviving spouse as trustee, then the surviving spouse can sell the stocks immediately.
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Contact the brokerage firm that holds the stocks. If you have physical certificates, you will still need to contact a brokerage firm to register the stocks in your name to be able the liquidate the assets. Notify the firm that your spouse has deceased, and request any forms that are needed either to register the stock certificates or retitle the deceased spouse's account. In most cases, the brokerage firm will require a death certificate, your own personal identification and a copy of the will trust if it is needed to determine account ownership.
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Complete and return the firm's paperwork. If the account was held at the firm, a new account must be created and the assets of the deceased spouse will be transferred into the new account. This process may take a couple of days. Additionally, the settlement period of a stock sale is three days. If you need to register the stock certificates, that process can take between 3 to 10 days depending on the registration process. Once registered in the surviving spouse's name, the stocks may be sold.
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Tips & Warnings
Before making any key financial decisions after the death of a spouse, speak to a financial advisor or tax advisor to understand any potential tax consequences related to the sale of stock.
