When someone passes away, their estate must be distributed. A testamentary transfer involves distributing the deceased’s estate to designated beneficiaries according to instructions in the will. This ensures a smooth transition of the estate’s assets, though it’s not the only distribution method available.
Non-Testamentary Transfer Distribution Methods
There are several ways estate assets can be transferred:
Surviving Spouse
If assets were held jointly, the surviving spouse maintains control. Assets held solely in the deceased’s name require a will for designation. Assets in lifetime trusts transfer through inter vivos mechanisms, with beneficiaries gaining control. Without a trust, assets enter probate.
Inter Vivos Transfer
These transfers occur while the person was living, including revocable trusts where the person retains control until death, then beneficiaries assume control.
Probate
When no will exists or assets aren’t included in one, probate court involvement occurs. An executor contacts creditors, pays debts and taxes, and distributes remaining assets according to the will or intestate succession laws.
Securities Transfer Process
Transferring non-designated securities requires additional steps. The executor or trustee must provide documentation to a transfer agent and obtain signature verification through a medallion guarantee.
This is where many families encounter unexpected roadblocks. Banks often decline to provide medallion signature guarantees for estate transfers, citing liability concerns or transaction limits.
Getting Help with Estate Securities Transfers
If you’re an executor or trustee needing to transfer securities from an estate, eSignature Guarantee can provide the medallion signature guarantee you need—even when your bank can’t help. We specialize in estate transfers and work with families, attorneys, and advisors every day.