02 Oct What’s needed to transfer this inherited stock account?

Q. My father left a stock account with $17,000 by “transfer on death.” He lived in Texas and there is no reason to file a will there because there are no assets passing by the will. We’re told we need a medallion and notary to send back to the bank but there was some conflicting information.
— Confused

A. You’re going to need to go back to the financial institution to ask exactly what it is requiring to pay out this account.

A medallion signature guarantee and a signature notary are different, although both must be done in person and in the presence of a person authorized to provide the guarantee or notary service, said Catherine Romania, an estate planning attorney with Witman Stadtmauer in Florham Park.

“A medallion signature guarantee is generally used for the transfer of securities and thus confirms the signer’s identity, his or her signature and his or her legal authority to transfer securities,” she said. “A medallion signature guarantee is generally performed at a financial securities firm although some banks may provide the service.”

A notary generally acknowledges that the signer is the person identified in the document and signed the document, she said. Some notary clauses also require that the signer indicate he/she is aware of the contents of the document.

“When the securities being transferred are minimal in amount, a notarization may suffice in place of a medallion signature guarantee,” Romania said. “Direction from the transfer company should be obtained as to whether a medallion signature guarantee or notary is required.”

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This story was originally published on Oct. 2, 2020.

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