California Probate: How Are Securities Transferred to Heirs or Beneficiaries?

In the decedent's estate, the personal representative will often find stocks, bonds, or mutual fund shares that will need to be transferred to the new owners, as established under California probate rules.

The transfer of bonds, debentures, and stocks is made by a transfer agent, while mutual fund shares are transferred by the fund management company.

The transfer agent's name is usually printed on the securities' certificates, but it may be necessary to ask for confirmation in writing because transfer agents change frequently. Another way of verifying the name and address of the transfer agent is to call a stockbroker, who may confirm the information or supply the name of the new agent.

The transfer agent will let you know what documentation is required to transfer title of the securities to the new owners. This may involve a large amount of work which, if you do not feel up to handling it yourself, can be delegated to a stock brokerage firm or bank that has the staff and experience to do it.

For mutual fund shares, you can probably find the name, address, and contact data of the fund manager on the monthly statements or the mutual fund management company's website.

The manager will inform you how to proceed to sell, redeem, or change the ownership of the shares.

If the process is handled through probate, you will need a probate court order to transfer the securities. Other documents will be required depending on the way the securities were owned (as tenant in common, in joint tenancy), and may be required depending on the beneficiary.

Securities held in concurrent ownership may lead to a complex transfer process, for which the advice of an experienced California probate lawyer will probably be helpful.

Talk to San Diego probate attorney Scott Grossman about your situation and any questions you might have. Call us at (951) 683-3704 or (866) 840-0000 for your FREE 30-minute telephone consultation. Also, order our FREE lawyer book The Insider's Guide to California Probate and Trust Administration.

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