Orange County California
Trust Attorneys

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StocksCan I name a beneficiary to receive my shares of stocks and avoid probate? For many people, avoiding probate administration is an important consideration when creating an estate plan. There are various mechanisms that can be utilized to avoid probate. For example, some types of assets allow you to name an individual up front to receive the asset when you die. This allows for a smooth and quick transfer of ownership. One such type of asset is shares of stock. Under the Uniform Transfer on Death Securities Registration Act, brokerages are allowed to offer transfer on death registration.

Know Whether You Can Take Advantage of Transfer on Death Registration of Stocks

If any item on the list below is located in a state that has adopted the Act, and if the brokerage offers transfer on death registrations, you can take advantage of the provisions of the Act:

  1. Your legal residence
  2. The office making the registration
  3. The stockbroker’s principal office
  4. The incorporation of the issuer of the stocks or the stockbroker
  5. The office of the transfer agent

Currently, every state except for Texas and Louisiana allows for transfer on death registrations for stocks.

When creating your estate plan, you will need to address various assets, including shares of stocks. A transfer on death beneficiary may allow you to avoid probate administration. Some clients have concerns about setting up transfer on death registrations because they worry about giving up control or ownership over their assets. It is important to note that a transfer on death beneficiary has no rights to the shares of stock while you are living. Until you die, you can still sell or give away the stock at any time. In addition, you are free to name a different beneficiary at any time. Once you die, the beneficiary named can claim the stock with ease.

Contact our office for more information about transfer on death options for stocks and other assets and for information on estate plans that fit your needs.

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Due to the CoVid19 virus California has issued a Stay-at-Home order. We understand how important the health and safety of our clients, and our staff is. We are complying with this order by continuing to work from our homes. While we are not in the office, we are still here to answer your questions, conducting consultations for review, and initial appointments by phone and email during normal business hours. We know that in this time, more than ever, it is important to have peace of mind about your estate planning. We are here to help you through this. Call our office number or email us and we will respond as quickly as possible.