How does the executor of a small estate cash in Stock that belonged to the deceased?

Question

A friend is the executor of his fathers small estate and needs to cash in his deceased fathers stock. He called his lawyer who seems confused as to how to do it, but the lawyer says it must be done. My friend has the paperwork - power of attorney, death certificates, and such. He has the stock certificate in hand. He lives in NY State. What is the best way for him to cash in the stock for money?

Answer 1

I think that you mean an EIN not TIN.  He would need to open an Estate Bank Account at his local bank. All he needs to do that is the EIN, death certificate, and the paperwork that shows that he is the executor.  Once he opens the account he can go to any broker (Charles Schwab has low fees) with the stock certificate, death certificate, and the paperwork that proves that he is executor and ask them to liquidate the stock.  The broker will them sell the shares and deposit the money into the Estate account.

Answer 2

call an investment firm and ask them to sell the stocks you hold long and will deliver to the transfer agent. They will give you the transfer agents name and how to contact them.  

Answer 3

Your friend  should go on the web site of the company that issued the stock, and look for "investor relations" or something like that. if you click on that, you can get a phone number or e-mail address to contact the transfer agent. those people will tell you just what paperwork he has to submit to cash out the shares.  

Answer 4

First they need yo determine who legally owns them

Winning that one may not be as good as it sounds since they'll also be liable for any fees or taxes owed  

Answer 5

A power of attorney isn't enough.

He needs a short certificate showing he's the executor.

He also needs to know the EIN of the estate.

Then he works with the transfer agent or his broker to sell the stock.  A 1099-B will be issued at the end of the year and he'll report the sale on the estate's 1041 tax return.