The Short Answer

In most estates, capital gains from stocks sold during administration are reported on the estate’s fiduciary income tax return (typically IRS Form 1041), using the estate’s tax basis in the shares (often the date-of-death value) and the sale proceeds shown on brokerage tax reporting. The personal representative also has authority under Florida probate law to manage and dispose of estate assets (including securities), but the tax reporting and “who pays” can change depending on whether the sale happened before or after death, whether the account is properly titled to the estate, and whether gains are allocated to principal or income for probate accounting purposes.

What Florida Law Says

Under Florida probate administration, the personal representative is a fiduciary and is expected to administer the estate efficiently and in the best interests of beneficiaries and creditors. That includes handling estate assets (like brokerage accounts), paying taxes and expenses, and keeping accurate estate records that support both probate accountings and tax filings.

The Statute

The primary law governing the personal representative’s authority to handle and sell estate assets is Fla. Stat. § 733.612.

This statute authorizes a personal representative (unless limited by the will or a court order) to acquire or dispose of estate assets and to vote and manage stocks and other securities, and to pay taxes and administration expenses—all of which directly ties into selling shares, opening an estate-titled brokerage account, and properly documenting transactions for tax reporting.

Separately, Florida law also requires an inventory with date-of-death values, which often becomes a key reference point when determining basis for later sales during administration. See Fla. Stat. § 733.604.

For additional background on estate tax-return issues that commonly come up during Florida probate, you may also find these helpful: Do I Have to File an Estate Tax Return in Florida If the Estate Made No Distributions? and How Do I Get an Estate EIN as a Personal Representative in Florida?.

Why You Should Speak with an Attorney

Even when the brokerage provides a 1099-B or gain/loss report, estate capital gains are a common place where executors get blindsided—especially when accounts are being retitled to an estate EIN, multiple 1099s exist, or the estate is trying to file quickly before e-filing closes. Legal outcomes often depend on:

• Strict Deadlines: Estates often face overlapping deadlines (probate administration deadlines, beneficiary/accounting expectations, and federal tax filing deadlines). If a return is filed with missing brokerage reporting under the estate EIN, amending later can be costly and can create beneficiary disputes.
• Burden of Proof: If the IRS questions basis, the estate may need documentation supporting date-of-death values and transaction history. Florida’s inventory requirement (date-of-death fair market value) can be important evidence when reconciling what was owned at death versus what was later sold. See Fla. Stat. § 733.604.
• Exceptions: Whether the gain belongs on the estate’s return or a beneficiary’s return can depend on how distributions were handled, whether the sale occurred before or after distribution, and how the transaction is characterized for fiduciary accounting (income vs. principal). Those decisions can affect taxes and can trigger objections from beneficiaries if not handled correctly.

Finally, because Florida law gives the personal representative broad power to manage and dispose of securities (unless restricted), the bigger risk is usually not “can you sell,” but whether the sale, documentation, and tax reporting are defensible and consistent across the probate accounting and the estate’s tax filings. See Fla. Stat. § 733.612.

Get Connected with a Florida Attorney

Do not leave your legal outcome to chance. We can connect you with a pre-screened Probate attorney in Florida to discuss your specific facts and options—especially if you are trying to reconcile brokerage tax documents, confirm whether additional 1099s exist under the estate EIN, and coordinate a stock sale with accurate estate tax reporting.

Find a Florida Attorney Now

Disclaimer: This article provides general information under Florida law and does not create an attorney-client relationship. Laws change frequently. For legal advice specific to your situation, please consult with a licensed attorney.