How to Sell Stock in an Estate Account
A primary task of the executor of a will or an administrator of an estate without a will is to sell certain assets. The objective of liquidating assets is to obtain cash that is easier to distribute to the heirs of the deceased individual. The Uniform Probate Code or a variation of this law in effect across the country sets forth the procedures to be taken to sell certain assets, including stock in an estate account.
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Things You'll Need
- Letters of Executor (estate with a will)
- Letters of Administrator (estate without a will)
- Stock certificate
- Written accounting
Instructions
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Retain the services of a stock broker or establish a self-service brokerage account in the name of the estate. You cannot use your own account to sell stock as the executor or administrator. The probate code in all states prohibits commingling of funds or assets in this manner.
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Present the stock broker or the self-service vendor with a copy of your Letters of Executor or Letters of Administration demonstrating your authority to act on behalf of the estate. In most cases you do not require an additional, specific order of the court to sell stock. Your general grant of authority is sufficient to undertake this type of transaction.
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Put in a sell order on behalf of the estate.
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Receive the proceeds from the stock sale on behalf of the estate. Take care that these funds go directly into a financial account previously approved by the court and in the name of the estate.
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Prepare a written account to be filed with the court setting forth the particulars of the sale, including the name of the stock, number of shares sold, price per share and the grand total earned through the transaction. Also set forth the date of the sale in the event the court desires any additional verification.
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Tips & Warnings
The timing of a stock sale is crucial to ensure the best return on an investment. You need to watch trends associated with the value of stock before you make a final decision to sell.
Estate cases run the risk of becoming complex. Your interests as the executor or administrator, as well as the heirs of the estate, likely are best served if you retain legal counsel to assist you with estate matters, including the sale of stock.
