Brokerages do not move money just because you show them a court order. If you are the executor for a Dallas estate, you will face account freezes, transfer holds, and requests for a Medallion Signature Guarantee before a single share transfers or a check cuts. When you plan the sequence—authority, verification, tax IDs, and medallions—you shorten delays and keep heirs calm.
Understand Why Accounts Freeze After Death
Financial institutions freeze accounts to prevent unauthorized transfers and protect the estate. The freeze stays in place until you present adequate proof of authority and complete the firm’s internal forms. Equity positions may still fluctuate with the market, but dividends reinvest or accrue inside the frozen account. Knowing this helps you set expectations with family members who assume you can sell on day one.
Gather Authority That Brokers Actually Accept
Dallas County letters testamentary or letters of administration show that a Texas court recognized your role. Most brokerages require recently dated letters—often within 60 or 90 days—plus a death certificate. Many also want an IRS Form W-9 for the estate or trust and the estate’s EIN. Bring the will if it grants independent authority and broad powers to sell securities. A neat packet stops back-and-forth and gets your case routed to the correct internal team.
Open The Right Receiving Accounts First
Before you request a transfer or sale, open the estate or trust brokerage account that will receive the assets. If beneficiaries will take in kind, confirm their accounts exist at the same institution or that a transfer of assets (TOA) is available to their outside custodian. If you plan to liquidate, decide whether to sell inside the decedent’s account after it is unfrozen or move positions to the estate account and sell there. The key is to avoid last-minute scrambling that triggers resubmissions.
Learn The Medallion Signature Guarantee Basics
A Medallion Signature Guarantee is not a notary. It is a stamp from a participating financial institution that verifies your identity and your authority to sign for the owner. Brokerages require it for tasks like transferring paper stock certificates, moving high-value shares, or retitling non-retirement assets between institutions. Only certain bank branches provide the stamp, and most limit the service to existing customers. Call ahead, ask about dollar limits, and bring original letters, IDs, and any prefilled transfer forms. Without a medallion, your paperwork can sit for weeks.
Coordinate Cost Basis, Dividends, And Tax IDs
At death, most non-retirement securities receive an adjusted basis to fair market value on the date of death (or alternate valuation date, if used). Ask the custodian to apply the stepped-up basis and provide a written cost-basis report. If you sell before that update, gains or losses may be misreported on Form 1099-B. Also, confirm dividend handling: if dividends are reinvesting, decide whether to switch to cash during administration. Provide the estate EIN so year-end tax forms land in the right bucket.
Handle Retirement Accounts With Precision
IRAs and 401(k)s march to different rules. If beneficiaries are named, assets generally transfer outside probate, and you should follow the plan’s inherited-IRA process. If no beneficiary exists, the account may pass to the estate, where timing and tax decisions become more complex. Do not liquidate a retirement account before you confirm the beneficiary status and the payout schedule; a wrong move can trigger avoidable taxes or penalties.
Communicate With Beneficiaries Early And Often
Tell heirs what you can do now and what must wait. Share the timeline: obtain letters, open accounts, get the medallion, submit transfer forms, and settle trades. Give realistic windows—often two to four weeks per step—so people do not assume funds will arrive immediately. A short weekly update with tasks completed and next steps reduces anxious calls and keeps everyone aligned.
Keep A Clean Paper Trail
Create a secure folder with letters testamentary, the EIN letter, the death certificate, account statements, basis reports, medallion appointment confirmations, and copies of all submitted forms. Record dates and names of brokerage representatives. If a transfer stalls, a detailed log accelerates escalation and shows you acted diligently.
Think Through Distribution Strategy
Consider the estate’s cash needs—taxes, debts, and expenses—before you transfer shares to heirs. If the estate must pay creditors, liquidate enough to cover those obligations and hold funds in the estate account. If you plan in-kind transfers, warn beneficiaries about diversification risk and the timing of Form 1099-DIV and 1099-B reports. Clear guidance avoids unhappy surprises in April.
Have A Backup For Hard-To-Serve Institutions
Some brokerages move quickly; others do not. If you hit a wall, ask for the decedent and estate transfer team’s direct fax or secure upload link, and request a supervisor call. Sometimes switching to a branch-level contact with authority to pre-review forms saves days. When delays become costly, consider moving all positions to one responsive custodian via TOA and completing sales there.
If you prepare like a pro, you will move frozen accounts without drama and liquidate securities on your timetable. For a Dallas-ready checklist, medallion coordination, and brokerage paperwork that clears on the first try, call McCulloch & Miller, PLLC at (713) 936-9073 and keep your probate administration on track.