How to Find Shares of a Deceased Person

Locating a deceased person’s shares, including stocks, mutual funds, and other investment holdings, can be challenging. This difficulty often stems from the shift to digital records, lost documentation, or a lack of clear organization. A thorough approach is needed to uncover these assets.

Preparing for the Search

Gathering legal documents is the first step to finding a deceased person’s shareholdings. A certified death certificate serves as official proof of death for financial institutions and government agencies. Obtain multiple certified copies from the vital records office or county clerk, as many entities require an original.

The deceased’s will or trust documents are also foundational, naming an executor or personal representative and outlining asset distribution. If a will exists, the probate court issues “Letters Testamentary” to the executor, granting legal authority. Without a will, the court appoints an administrator and issues “Letters of Administration.” These court orders are necessary for accessing accounts.

Before contacting external parties, review the deceased’s personal papers and digital records for clues. Examine physical documents like old brokerage statements, dividend checks, tax returns (especially Schedule B for interest and dividends, and Schedule D for capital gains), and investment-related mail. Safety deposit boxes may hold physical share certificates or financial records, though accessing them often requires a court order. For digital records, check computer files, email accounts for financial statements, and password managers. This internal search helps identify financial institutions and account numbers, streamlining external inquiries.

Locating Shareholdings

With documentation ready, contact financial institutions where the deceased held accounts, including banks, credit unions, and brokerage firms. Provide the certified death certificate, the deceased’s full name, Social Security Number, and the Letters Testamentary or Administration. Institutions can search their records for accounts linked to the Social Security Number, even without specific account numbers.

Many companies use “transfer agents” to manage records for directly held shares, especially for physical stock certificates or shares not held in a brokerage account. Transfer agents, often banks or trust companies, maintain shareholder records, issue certificates, and distribute dividends. If a company’s website doesn’t list its transfer agent, a web search for the company name and “transfer agent” can provide this information. Provide the transfer agent with the deceased’s details and legal documentation to confirm direct shareholdings.

Unclaimed property databases are another resource for locating forgotten assets. States take possession of assets from financial institutions when accounts become dormant, a process called escheatment, usually after three to five years. These assets can include uncashed dividends, forgotten shares, or safe deposit box contents. Multi-state search websites exist, and each state’s treasurer or comptroller’s office maintains its own database. Search these databases using the deceased’s full name and previous addresses to recover lost assets.

Shares may also be held through Dividend Reinvestment Plans (DRIPs), where dividends automatically purchase additional shares directly from the company. These are typically managed by the company’s transfer agent. Clues to DRIP holdings might be in old dividend statements or proxy voting materials. For complex or extensive estates, consulting a probate attorney or a financial advisor specializing in estate matters can be beneficial.

Managing Discovered Assets

After locating shareholdings, confirm ownership, establish their value, and prepare for transfer. Request current statements from financial institutions or transfer agents to confirm the number of shares and market value. For tax purposes, the shares’ value on the deceased’s date of death is important, as this “step-up in basis” impacts future capital gains taxes for beneficiaries.

Transferring share ownership to the estate or beneficiaries requires specific documentation. Financial institutions and transfer agents typically require a certified death certificate and the Letters Testamentary or Administration. For physical stock certificates or certain transfers, a “Medallion Signature Guarantee” may be needed. This specialized stamp, provided by banks, credit unions, or brokerage firms in recognized Medallion programs, authenticates the signature and ensures the signer has the legal authority to transfer securities. Obtaining one usually requires being an established customer.

Inherited shares have significant tax implications. Inherited assets generally receive a “step-up in basis,” resetting their cost basis to their fair market value on the decedent’s death date. This adjustment reduces capital gains tax liability if shares are sold later, as only appreciation after death is taxed. For example, if shares purchased for $10,000 are worth $100,000 at death, and then sold for $105,000, capital gains are calculated only on the $5,000 appreciation.

Federal estate taxes may apply to very large estates. For 2024, the federal estate tax exemption is $13.61 million per individual; estates below this threshold typically owe no federal estate tax. Estates exceeding this amount may face a federal estate tax rate up to 40% on the portion above the exemption. The executor files IRS Form 706 if the gross estate exceeds the exemption.

Income earned by the deceased but not received before death is “Income in Respect of a Decedent” (IRD), which can include unpaid dividends. IRD is subject to both estate tax (if applicable) and income tax for the recipient, though a deduction for estate tax paid on IRD may be available to avoid double taxation. Given the complexities of tax laws, consulting a qualified tax professional or estate attorney is highly recommended to ensure compliance and optimize the financial outcome for the estate and beneficiaries. Once shares are transferred, beneficiaries can decide whether to hold them or sell them for liquidity.