Free Broker Confirmation Letter

One of the personal representative's responsibilities in probating a decedent's estate is that of gathering the decedent's assets. The personal representative must collect and inventory the decedent's assets that are subject to probate. Tasks involved in gathering the decedent's assets include reviewing records to identify all of the decedent's assets, determining which assets are subject to probate, taking physical custody of probate assets, valuing the assets, and filing an inventory listing with the probate court.

Sometimes, the decedent owned one or more investment accounts. These accounts may include money market funds, stocks, bonds, mutual funds, and other investments.

The Broker Confirmation Letter serves several purposes. It allows the personal representative to verify the existence of investment accounts held by an investment firm. It also helps determine the exact ownership of the investments. If the investments are held jointly with another individual, or if the investments are held by a trust, the investments may or may not be subject to probate. Therefore, it is important for the personal representative to be able to identify the types of investments owned by the decedent and in whose name the investments are held.

The personal representative must also value the decedent's assets as of the date of the decedent's death. This confirmation letter requests information about the values of the investments as of the date of death, including interest accrued and dividends paid on the investments.

The personal representative is also responsible for inventorying the decedent's assets. The personal representative may or may not have all information concerning investments held by the decedent. The personal representative can send this letter to investment firms where the decedent may potentially have held investments. This letter can help identify previously unknown assets.

Accounts at investment firms continue to earn interest, dividends, and capital gains after the decedent's death. Such items are income to the estate that the personal representative must report on the estate's income tax returns. This confirmation letter assists the personal representative in obtaining information about investments owned by the decedent, which in turn become assets of the estate. The personal representative can then keep track of the assets of the estate that will produce income for the estate that must be included on the estate's income tax returns.

The investment firm may have questions about your request. For example, there may be a question about your authority to receive the information. It is important that you provide a way to contact you and expedite the process of receiving the correct information.

The "documentation" is the court document that appoints an "executor," "administrator," or "personal representative," to act on behalf of an estate. Most brokerage firms require a certified copy of this document before releasing information about an account to someone not named on the account.

1. Sign the letter before you mail it.

2. Include a self-addressed stamped envelope with your letter.

3. Include a certified copy of the document issued by the court appointing you to act on behalf of the estate with your letter.

4. Always keep a copy of all documents and correspondence you prepare as the personal representative of an estate. It may be necessary to prove that you used due diligence in locating the decedent's assets.

If the stocks and bonds are listed with a stock exchange, the valuation is determined by averaging the highest and lowest quoted price on the date of death (the valuation date). If the valuation date is not a trading day; for example, a Saturday, Sunday, or holiday, the valuation is determined by averaging the highest and lowest quoted price for the last trading day prior to the date of death, and the highest and lowest quoted price for the first trading day following the date of death. These two averages are then averaged together to determine the date of death value.