4 Tips When Selling Securities in a California Probate Administration

Selling Securities in a California Probate

In California, the executor or administrator must gather all of the assets of the estate. Eventually, the executor or administrator sells or distributes the assets to beneficiaries or heirs. One type of asset that an individual might own at the time of their passing is a security. Securities include stocks, bonds, and mutual funds. Handling securities as part of a probate administration can be complex. Fortunately, an experienced Southern California probate attorney can help.

The following are helpful tips about selling securities as part of a California probate administration:

  • Certain securities do not need appraisal before approval of sale by the probate court. These include securities sold on an established stock or bond exchange, national market system securities on an interdealer quotation system by the National Association of Securities Dealers, Inc., sold through a broker-dealer registered under the Securities Exchange Act of 1934 during the regular course of business of the broker dealer, and securities that are surrendered for redemption conversion.
  • In a petition to sell securities that are listed on an established stock or bond exchange, the executor or administrator must:
    • Give the specific exchange on which the securities are traded
    • Share the specific exchange on which the securities are listed
    • state the specific change on which the securities are reported.
  • The executor or administrator must petition to sell unlisted securities by:
    • state the recent bid
    • state the asked prices.
  • In a petition for sale of mutual funds that are redeemable by the issuer at net asset value, the executor or administrator must:
    • allege that the shares will be redeemed for the net asset value per share on the date of redemption.

Our article, In California, Transferring Securities Requires Many Documents, offers additional information about managing and transferring this type of estate asset. In addition, our free guide, Probate a Will or Administer a Trust After the Loss of a Loved One, provides further information about managing estate assets. For assistance probating the estate of your deceased loved one, contact an experienced San Diego probate attorney today. Call the Grossman Law Firm at (888) 443-6590.

 
Scott Grossman

Scott Grossman

Attorney

The Grossman Law Firm, APC · 525 B Street, Suite 1500, San Diego, CA 92101 · (951) 523-8307