When a person dies owning corporate stocks or bonds, the securities must either be sold or transferred to the beneficiaries who are entitled to them. If they are not sold, the recordbooks of the corporation must list the security in the name of the new owner in order to afford him or her with voting and dividend rights, or rights to interest payments. In order to protect themselves from the liability associated with a misdelivery or misappropriation of stock titled in the name of a person who has died ("decedent"), the corporation or its transfer agent ("broker") must ensure that the person requesting the sale or transfer enjoys the authority to do so and that the tax laws have been complied with. Of the several documents that are required, the Affidavit of Domicile is provided to advise the broker of which state the decedent was a resident at death, and therefore which state has the power to assess death taxes against the assets of the decedent. The broker can then rely upon certification from that state's tax division that any such death taxes have been satisfied. The corporation or broker also will require other documents in order to substantiate, at a minimum: (1) the written request to sell or transfer the stock (the "Stock Power") with signatures guaranteed, and (2) that the court-appointed "fiduciary" (e.g., the Executor, Administrator or Personal Representative) for the estate of the decedent was duly appointed and continues to act with authority ("Letters of Appointment") or that, if no fiduciary was appointed, the entire set of necessary beneficiaries ("Affidavit of Heirship") has consented to the request to sell or transfer. |