When a person dies owning corporate stock, the stock must either be sold or transferred to the beneficiaries who are entitled to it. The stock records of the corporation must be changed to show the name of the new owner so that the new owner can receive dividends and exercise other ownership rights. A corporation or transfer agent can be held liable for transferring stocks or bonds to the wrong person. Therefore, the corporation or transfer agent must be sure that the person requesting a transfer has the authority to do so. A Stock Power is written instructions to transfer ownership of a stock or bond. It must be signed by either (a) all of the interested parties/beneficiaries or (b) the court-appointed "fiduciary" (for example, the Executor, Administrator, or Personal Representative) for the estate of the decedent. The signature(s) must be medallion guaranteed by a bank or stock broker. The corporation or transfer agent will also require Letters of Appointment to show that the fiduciary was duly appointed and continues to act with authority. If no fiduciary was appointed, an Affidavit of Heirship may be required to show that all of the beneficiaries signed the Stock Power. In some cases, additional documents may be requested by the corporation or transfer agent. |