How to Sell Stocks After a Death (2026)

If you are the executor and the person who died owned stocks, the path depends on how the shares were held. Brokerage accounts usually go through the brokerage estate department, while directly held shares often require a transfer agent, an affidavit of domicile, and a medallion signature guarantee before the stock can be transferred or sold.

A medallion signature guarantee is not the same as getting a document notarized. It is a special guarantee used in securities transfers, and many executors get stuck because they ask the wrong institution, bring incomplete court papers, or try to sell shares before the transfer agent has accepted their authority.

This guide explains the practical steps for selling a deceased person's stocks, with a focus on transfer agents and medallion guarantees. It is general information, not legal or tax advice.

First, find out how the stock was held

Before you can sell anything, identify whether the shares were held in a brokerage account or directly with the company through a transfer agent.

A brokerage account is usually with a firm such as Fidelity, Schwab, Vanguard, Merrill, or another investment company. The statement will show the brokerage name, account number, holdings, and whether there is a beneficiary designation such as transfer on death, often shortened to TOD.

Directly held shares are different. The person who died may have owned stock through a company plan, dividend reinvestment plan, employee stock purchase plan, or paper certificate. These shares are usually handled by a transfer agent, such as Computershare, Equiniti, Broadridge, or another agent hired by the company.

This distinction matters because the paperwork, timing, and signature rules can be very different.

If you are still trying to find accounts, Sunset can search 2,500+ financial institutions for accounts and assets. That asset discovery step can help the executor build a clearer inventory before deciding whether stock should be sold, transferred to heirs, or held during the estate settlement.

Brokerage account versus directly held shares

For a brokerage account, the executor normally contacts the brokerage estate department. The firm may ask for:

• A certified death certificate
• Letters testamentary or letters of administration
• A copy of the will, if there is one
• An estate EIN
• A W-9 for the estate
• An instruction form to retitle, transfer, or liquidate assets

If the account has a named beneficiary, the brokerage may work directly with that beneficiary. If there is no beneficiary, the account often becomes part of the probate estate, and the executor may need court authority before the brokerage will allow a sale.

For directly held shares, the transfer agent is the key contact. The transfer agent keeps the official shareholder record for the company. Even if you have old statements or stock certificates, the transfer agent decides what paperwork is needed to move the shares into the name of the estate, a beneficiary, or an heir.

Transfer agents can be strict. A small mismatch in the shareholder name, address, estate title, or signature can lead to a rejected packet. Read the transfer agent's instructions before filling out forms, and ask whether original documents or certified copies are required.

What a transfer agent may require

Transfer agent requirements vary by company, account type, state, and share value. Common items include:

• Certified death certificate
• Letters testamentary or letters of administration
• Stock power or transfer request form
• Affidavit of domicile
• Inheritance tax waiver, if required by state law
• W-9 for the new owner or estate
• Original stock certificate, if shares were certificated
• Medallion signature guarantee on the transfer form or stock power

Some transfer agents also require a small estate affidavit, court order, or trust documents, depending on how the shares were titled. If the person who died owned shares in a trust, the trustee may have a different process than an executor handling probate property.

Sunset can generate state- and county-specific probate packets and can refer families to a local probate attorney when counsel is needed. For many executors, getting the court authority in order is the step that makes banks, brokerages, and transfer agents willing to act. For more on why institutions usually need court-backed authority, see why a bank will not accept a will that has not been probated.

What is a medallion signature guarantee?

A medallion signature guarantee is a financial institution's guarantee that a signature is genuine and that the signer has authority to transfer securities. It is commonly required when stock is sold, reissued, or moved from one owner to another.

It is not a notary stamp. A notary verifies identity for many documents, but a medallion guarantee carries financial liability for the institution that issues it. That is why banks and brokerages do not give them out casually.

For an estate, the person signing is usually the executor or administrator. The institution providing the medallion guarantee may ask to review:

• Your government ID
• The certified death certificate
• Court-issued letters showing your appointment
• The transfer agent form or stock power
• Recent statements showing the shares
• Proof of your relationship to the institution

Many institutions will only provide a medallion guarantee for existing customers. Some require the customer relationship to be open for a set period. Others limit the dollar value they will guarantee. If the stock value is high, you may need to call several institutions before finding one that can help.

Where to get a medallion signature guarantee

Start with institutions where the estate, the person who died, or you already have a relationship. Possible sources include:

• Banks
• Credit unions
• Brokerage firms
• Trust companies
• Some investment advisory firms with broker-dealer relationships

Call before visiting. Ask whether the branch provides medallion signature guarantees, whether an appointment is needed, and what documents an executor must bring. Also ask whether the institution participates in a recognized medallion program, such as STAMP, which many transfer agents require.

Use the transfer agent's exact form. Some institutions will refuse to guarantee a loose stock power or a form that is not filled out. Others will not stamp a document if any field is blank. Do not sign the form before the appointment unless the institution tells you to. They may need to witness your signature.

If a bank refuses, it does not always mean your paperwork is wrong. It may mean the bank does not provide that service, does not guarantee estate transfers, or cannot cover the share value. Ask the transfer agent whether there are alternate procedures if you cannot obtain a medallion guarantee.

What is an affidavit of domicile?

An affidavit of domicile is a sworn statement that identifies the legal residence of the person who died at the time of death. Transfer agents use it to confirm which state's rules may apply to the stock transfer.

The affidavit usually includes:

• The name of the person who died
• Date of death
• Legal residence at death
• Executor or administrator information
• A statement that debts and taxes are being handled according to law
• A notarized signature

The affidavit of domicile is often requested for directly held shares, especially when there are paper certificates or older accounts. It may be separate from the medallion guarantee. In many cases, the affidavit is notarized, while the stock power or transfer form receives the medallion stamp.

Do not guess at domicile if the person who died had more than one home, spent time in another state, or recently moved. The county where probate is filed and the person's legal residence can affect the estate process. Sunset has a guide on which county to file probate in that explains the basic location question.

Should the executor sell the stock or transfer it to heirs?

An executor may need to sell stock to pay estate expenses, taxes, creditor claims, or distributions. In other estates, it may make sense to transfer shares to beneficiaries in kind, meaning the beneficiaries receive the shares instead of sale proceeds.

This decision can involve the will, court rules, market risk, beneficiary preferences, and tax issues. Executors should keep records showing why stock was sold, the sale date, sale price, and where proceeds went.

Tax basis is one reason to pause before selling. Many inherited assets receive a basis adjustment to fair market value on the date of death, often called a stepped-up basis. That can affect capital gain or loss when shares are sold. The IRS discusses basis rules in Publication 551. A tax professional can help apply those rules to the estate's facts.

If you sell estate-owned stock, proceeds should generally go into an estate account, not a personal account. Sunset offers an FDIC-insured estate account that can help executors separate estate money from personal funds. You can read more about how an estate account works in Open an Estate or Trust Account With Sunset.

Practical checklist for the executor

Use this checklist before sending paperwork to a transfer agent or brokerage:

1. Locate the most recent stock statement, brokerage statement, or stock certificate.
2. Confirm whether the account has a beneficiary or TOD registration.
3. Get certified death certificates.
4. Open probate if court authority is needed.
5. Obtain letters testamentary or letters of administration.
6. Request the transfer agent's estate transfer packet.
7. Ask whether an affidavit of domicile is required.
8. Ask where the medallion signature guarantee must appear.
9. Call banks, credit unions, or brokerages to find a medallion provider.
10. Confirm whether the shares should be sold or transferred in kind.
11. Keep copies of every form, statement, and mailing receipt.
12. Deposit sale proceeds into an estate account if the estate owns the shares.

Send important securities paperwork with tracking. If original stock certificates are involved, ask the transfer agent whether additional safeguards or lost certificate procedures apply.

Common reasons stock transfer packets are rejected

Transfer agents reject packets for many fixable reasons. Common problems include:

• The executor signed in an individual capacity instead of as executor
• The medallion guarantee is missing or placed on the wrong document
• The guarantee amount is too low for the value of the shares
• Letters testamentary are too old under the transfer agent's rules
• The affidavit of domicile has conflicting address information
• The shareholder name does not match the transfer agent's records
• A required inheritance tax waiver is missing
• The stock certificate was not included or has been reported lost

If a packet is rejected, ask for the rejection reason in writing. Then correct only what is needed. Recreating every form from scratch can create new errors.

FAQ

How do I transfer stock of a deceased owner?

First, find out whether the stock was held in a brokerage account or directly with a transfer agent. Then provide the required death certificate, court authority, tax forms, and transfer instructions. Directly held shares often require a transfer agent packet, affidavit of domicile, and medallion signature guarantee.

Is a medallion signature guarantee required for an estate?

Often, yes, if securities are being transferred or sold outside a standard brokerage process. The transfer agent decides whether a medallion guarantee is required and where it must appear. A notary stamp usually cannot replace it.

Can an executor sell stocks before probate is finished?

It depends on how the shares are titled and what authority the executor has. If shares are in the probate estate, a brokerage or transfer agent usually wants court-issued letters before allowing a sale. If there is a named beneficiary, that beneficiary may work directly with the institution.

Where can I get an affidavit of domicile?

Transfer agents often provide their own affidavit of domicile form. Some attorneys and estate administration services can also prepare one. The statement is usually signed by the executor and notarized.

What happens to stock certificates after death?

Paper stock certificates may need to be sent to the transfer agent with estate forms. Do not alter or sign the certificate unless the transfer agent instructs you. If the certificate is lost, the transfer agent may require a lost certificate affidavit and bond.

How Sunset can help

Selling a deceased person's stocks can be one small part of a larger estate settlement. Sunset helps executors start with assets and liabilities first, find accounts, prepare probate paperwork by state and county, open an FDIC-insured estate account, and work through transfers and account closures.

Sunset has helped more than 20,000 families settle estates. If you are sorting out brokerage accounts, directly held shares, transfer agent forms, or court paperwork, Sunset can help you see what needs to happen next. Get started with Sunset.