What to do when a decedent’s brokerage account needs to be moved into an estate checking account

Detailed Answer

When a person who owned a brokerage account dies, the path to moving the account assets into an estate checking account depends on how the account was owned and whether a beneficiary or trust was named. Under Florida law, some assets pass outside probate (to joint owners, pay-on-death/transfer-on-death beneficiaries, or to a trust), while assets titled solely in the decedent’s name usually must be collected by the personal representative through probate. The governing rules for estate administration are in Florida’s probate statutes (see Florida Statutes, Chapter 733: https://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0733/0733.html).

Key ownership types and how they affect transfer

Joint account with right of survivorship: The surviving owner typically becomes sole owner and the brokerage will transfer or re-register the account to that person after receiving a death certificate and identification.
Transfer-on-death (TOD) or Payable-on-death (POD) designation: Assets pass directly to the named beneficiary outside of probate. The beneficiary must show identification and a certified death certificate and follow the broker’s beneficiary-claim process.
Trust-owned account: If the account is titled in the name of a revocable living trust, the successor trustee manages or distributes the assets per the trust terms; probate is usually not required.
Sole-owner account (no beneficiary): This is generally a probate asset. To move proceeds to an estate checking account, a personal representative must be appointed and present Letters of Administration or Letters Testamentary to the brokerage.

Step-by-step process when the brokerage account is a probate asset

Confirm account ownership and beneficiary status. Look at recent account statements, the account registration, or contact the brokerage’s probate department.
Obtain certified copies of the death certificate. Brokerages require one or more certified copies before releasing funds or changing title.
Open an estate checking account. The appointed personal representative (executor or administrator) opens an account in the name of the estate (e.g., “Estate of [Decedent Name], by [Personal Representative Name], Personal Representative”). The bank will require the death certificate and proof of the personal representative’s authority.
Obtain Letters of Administration or Letters Testamentary from the Florida probate court. To collect or liquidate brokerage assets titled in the decedent’s name, the personal representative typically needs court-issued letters proving appointment and authority. See Florida’s probate statutes for appointment and duties of a personal representative (Chapter 733: https://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0733/0733.html).
Present required documents to the brokerage. Provide the certified death certificate, Letters of Administration/Testamentary, personal identification, and the estate bank account information. The brokerage will tell you whether it will transfer securities in kind, liquidate holdings, or issue a check to the estate account.
Complete any broker-specific probate forms. Brokerages have their own forms and procedures (probate claim forms, transfer forms, or authorization forms). Follow them closely to avoid delays.
Record and preserve documentation. Keep detailed records of all transfers into the estate checking account, valuations, and communications. These records will be needed to prepare inventories, pay creditors and taxes, and for final distribution.

When you can avoid full probate

Florida law provides several ways assets can transfer without a full administration. If the brokerage account had a valid TOD/POD beneficiary or was jointly owned, it typically transfers outside probate. Florida also allows simplified procedures for smaller estates or certain personal property in limited situations. For the statutory framework on distribution and simplified procedures see Florida Statutes, Chapter 735: https://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0735/0735.html.

Hypothetical example

Jane held a brokerage account solely in her name. After Jane died, her daughter Maria became the named personal representative under Jane’s will. Maria obtained certified death certificates, filed the will and petitions in Florida probate court, and received Letters Testamentary. Maria opened an estate checking account titled “Estate of Jane, by Maria, Personal Representative.” She provided the brokerage with the death certificate, her Letters Testamentary, and the estate account details. The brokerage liquidated the account and issued a wire to the estate checking account. Maria kept copies of all paperwork, deposited the funds, and used the estate checking account only for estate-related transactions.

Practical considerations and common pitfalls

Do not commingle estate funds with your personal funds. Keep a separate estate checking account and separate records.
Brokerages often freeze accounts when they learn of a death. Expect processing time and requests for legal documents.
Liquidation of securities may trigger capital gains or other tax issues for the estate. Work with an accountant or attorney if needed.
Be prepared for creditors’ claims and required accounting to the court. The personal representative has fiduciary duties under Florida law (see Chapter 733: https://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0700-0799/0733/0733.html).

Helpful Hints

Immediately request multiple certified death certificates from the local vital records office; brokerages and banks require originals or certified copies.
Call the brokerage’s probate or estate department first. Ask for a checklist of required documents and forms to speed up processing.
Search for beneficiary designations and account titling before starting probate. A TOD/POD designation or joint ownership can avoid probate entirely.
Open the estate checking account in the exact name the bank requires for estates. Bring the death certificate and a copy of the court appointment documents.
Get a written confirmation from the brokerage about when and how they will transfer or pay out the account proceeds.
Keep a running inventory and copies of all communications, account statements, and receipts. These protect the personal representative and help with required filings.
If the estate is small or a simplified procedure may apply, discuss summary or small estate options with a probate attorney familiar with Florida practice.

When to talk to an attorney: If the account ownership is unclear, beneficiaries dispute the transfer, the brokerage refuses to release funds, or the estate involves taxes or significant assets, consult a Florida probate attorney to navigate filings and duties.