Managing a Deceased Estate with US or Canadian Shares: A Guide for Executors

When an estate includes US or Canadian shareholdings, the administration process becomes more complex especially for executors based outside North America. Unlike Australian share registries, US and Canadian transfer agents have strict documentation requirements, unique legal terminology and formal signature guarantees that must be followed precisely. Understanding these requirements early can prevent months of delays, rejected forms and costly re-submissions.

This practical guide outlines what executors need to know when administering a deceased estate that holds US or Canadian securities.

Understand How the Shares Are Held

Before you can begin the transfer process, you must determine how the shares are registered. They will usually be held in one of three ways:

DRS (Direct Registration System): Shares are held electronically with a transfer agent such as Computershare US, AST, EQ, Broadridge or Continental.

Physical certificates: Older shareholdings may still exist in paper certificate form.

Plan accounts or DRIPs: Dividend reinvestment or employee share plans often have additional requirements.

The transfer agent listed on the DRS statement or certificate is the organisation that will process the estate transfer.

Obtain the Correct Estate Forms

Each transfer agent has a specific Deceased Estate Transfer Package, which must be completed accurately. These forms typically request:

• Estate executor details

• Beneficiary details

• Instructions on whether shares are being transferred or sold

Any errors such as spelling inconsistencies or incorrect account numbers may cause rejection.

Prepare Essential Estate Documentation

To prove legal authority, US transfer agents require formal estate documents. Depending on the estate, these may include:

• Death certificate

• Probate

• Small Estate Affidavit, where state law allows

• Affidavit of Domicile, declaring the deceased’s country and state of residence

A Medallion Signature Guarantee Is Almost Always Required

When the registered holder is deceased, any form authorising the transfer or sale of shares must include a Medallion Guarantee Stamp. This is not the same as a notary stamp and cannot be issued by Australian banks.

A Medallion Guarantee may be required for:

• Transferring shares to beneficiaries

• Selling estate-held shares

• Updating the registration into the estate’s name

• Handling joint accounts where the remaining holder is transferring ownership

Executors must obtain the Medallion Stamp from an authorised STAMP program member.

Verify Executor Identity and Signature

If names differ from documents (marriage, hyphens, spelling differences), additional evidence is required to satisfy the transfer agent.

Send Documents to the Transfer Agent

US and Canadian transfer agents do not accept emailed or scanned copies for estate transfers, you must send originals.

Final Thoughts

Managing a deceased estate holding US or Canadian shares can feel overwhelming, particularly when dealing with signature guarantees and unfamiliar documentation. However, with the correct forms, certified estate documents and a Medallion Signature Guarantee, the process is entirely manageable.

Executors who understand the transfer agent’s expectations upfront can avoid long delays and ensure the estate is administered efficiently, accurately and in accordance with US and Canadian securities requirements.

This information is provided by Carnbrea & Co Limited ABN 33 004 739 655, Australian Financial Services Licence No. 233763. Any advice included in this document is general in nature and does not take into account your objectives, financial situation or needs. Before acting on the advice, you should consider whether it is appropriate to you. If a product we recommend has a Product Disclosure Statement (PDS) or a Prospectus, you should read it before making a decision. Past performance is not a reliable indicator of future performance. Derivatives are leveraged products which means gains and losses are magnified and you may lose substantially more than your initial investment. We do not endorse any information from research providers that we provide to you, unless we specifically say so.