Short answer
If the brokerage account names a surviving owner or beneficiary (joint tenancy, payable-on-death (POD), or transfer-on-death (TOD) designation), the assets usually pass outside probate and the broker will re-title or pay out to the beneficiary after you provide a certified death certificate and identification. If the account was only in the decedent’s name, you generally need a court appointment as personal representative (letters testamentary or letters of administration) or a permitted small‑estate process before the broker will transfer or liquidate assets to an estate checking account.
Detailed answer — step-by-step under California law
1. Identify how the account is titled
Before you contact the broker, determine the account’s legal title. Common possibilities:
- Joint account with right of survivorship (passes to surviving owner).
- Payable-on-death (POD) or transfer-on-death (TOD) designation (passes to named beneficiary).
- Solely in the decedent’s name with no beneficiary (likely requires probate).
2. If the account passes directly to a surviving owner or beneficiary
The broker will generally require:
- A certified copy of the death certificate.
- Proof of the beneficiary’s identity.
- Completed transfer forms required by the firm.
For TOD securities in California, see California’s transfer-on-death statute for securities: Cal. Probate Code § 5600 et seq.. If the asset passes to a named beneficiary other than the estate, it usually does not go into an estate checking account.
3. If the account is only in the decedent’s name (no beneficiary)
Most brokerages will not transfer or redeem assets to a personal representative until you provide proof of authority from the probate court. Typical steps:
- Locate the will. If there is a will, the named executor may petition the probate court to be appointed.
- File a petition in the county probate court to open probate and ask for issuance of letters testamentary (if there is a will) or letters of administration (if there is no will).
- Obtain certified copies of the letters from the court.
- Obtain an Employer Identification Number (EIN) for the estate from the IRS (most banks and brokerages require an EIN rather than using the representative’s Social Security number): IRS — Apply for an EIN.
- Open an estate checking account at a bank in the estate’s name using the letters and the EIN.
- Provide the brokerage with the certified death certificate, certified letters, and any firm-specific transfer/liquidation forms. The brokerage will then transfer assets in kind to the estate account or sell the assets and deposit proceeds to the estate checking.
4. Small‑estate alternatives
California law offers simplified procedures for small estates so you may be able to claim brokerage assets without full probate. See California’s small estate affidavit statute: Cal. Probate Code § 13100. The rules include dollar limits and special procedures. Check the current statute and consider an attorney if you are near the statutory threshold.
5. Broker requirements and practical points
- Each brokerage has its own internal forms and procedures. Call the firm’s estate or client-services desk and ask for their required documentation checklist.
- Brokerages typically require a certified copy of the death certificate and certified letters from the probate court. Some will accept a court-certified order specific to the transfer.
- Firms may require original signatures and notarization on transfer forms.
- You can usually ask the broker to transfer securities in-kind to the estate account (keeps investments intact) or to liquidate and transfer cash. Consider tax consequences before selling.
6. Taxes and accounting
California does not impose a separate state estate tax, but federal estate tax rules may apply for large estates. The estate must file any required income tax returns and may need to handle capital gains and basis step-up rules when assets are sold. Keep detailed records of transactions and distributions. When in doubt, consult a tax advisor or probate attorney.
7. When to consult an attorney
Get legal help if you face:
- Conflicting claims to assets (disputes among heirs or creditors).
- Complex asset types (restricted stock, foreign accounts, or alternative investments).
- Unclear account title or missing estate documents.
- Concerns about tax liability from liquidation or transfer.
Helpful Hints
- Start by calling the brokerage’s estate or client services department. Ask for a written checklist of required documents and forms.
- Order several certified copies of the death certificate early. Courts, banks, and brokers commonly require originals of the certified certificate.
- If you expect to act as the personal representative, apply for the estate EIN from the IRS before opening an estate checking account.
- Don’t deposit estate money into your personal account. Use an estate checking account to avoid commingling funds and to keep proper accounting.
- Keep detailed records of communications, forms, transfers, and receipts. Good records simplify final accounting and tax filing.
- If the estate is small, check whether a small‑estate affidavit or summary procedure applies under Cal. Probate Code § 13100 before starting full probate.
Useful links
- California Probate Code (searchable): https://leginfo.legislature.ca.gov/faces/codes.xhtml?lawCode=PROB
- California transfer-on-death for securities: Cal. Probate Code § 5600 et seq.
- California small‑estate affidavit: Cal. Probate Code § 13100 (check current dollar limits and conditions).
- IRS — Apply for an Employer Identification Number (EIN): https://www.irs.gov/…
Final notes and disclaimer
This overview explains general California procedures for moving brokerage assets into an estate checking account. It is not legal advice and does not create an attorney‑client relationship. Rules and statutory thresholds change; if your situation involves disputes, complex assets, or uncertain title, consult a California probate attorney for personalized guidance.