How to Transfer Stocks and Brokerage Accounts After a Death in California

Short answer: It depends entirely on how the account was titled. If the account had a transfer-on-death (TOD) beneficiary, you claim it directly from the brokerage under California’s Uniform TOD Security Registration Act (Prob. Code §§5500–5512). If it was held in a living trust, the successor trustee takes over with a certification of trust (§18100.5). If neither, you can use the §13100 small-estate affidavit when the whole estate is $208,850 or less — otherwise the account goes through probate. The paperwork hurdle nobody warns you about: a medallion signature guarantee.

Figures verified against Probate Code §§5500–5512, §13100, and Judicial Council form DE-300, 2026. This is general information, not legal advice for your situation.

First question: how was the account titled?

Before you call anyone, figure out which of three buckets the account falls into. A recent statement usually tells you. Look at the registration line at the top — not the balance, the name.

• “John Smith TOD Jane Smith” (or “POD,” or “beneficiary”) — the account passes directly to the named beneficiary, outside probate.
• “John Smith, Trustee of the Smith Family Trust” — the account belongs to the trust, and the successor trustee steps in.
• “John Smith” alone, no beneficiary on file — the account is part of the probate estate, and the path depends on the size of the total estate.

Each bucket has its own paperwork. Mixing them up wastes weeks.

TOD and beneficiary-registered accounts

California adopted the Uniform TOD Security Registration Act (Prob. Code §§5500–5512), which lets brokerage and security accounts be registered in beneficiary form. At death, the securities belong to the named beneficiary — no probate, no court, no waiting period.

That’s the law. The practice is that the brokerage or transfer agent will not move a share until you give them a certified death certificate, their own transfer forms, and — in many cases — a medallion signature guarantee (more on that below). Call the firm’s estate services or “transition” team first and ask exactly what they require. Every firm’s checklist is a little different.

Accounts held in a living trust

If the account was titled in a trust, the successor trustee takes control. You don’t hand the brokerage the whole trust document — you hand them a certification of trust under Probate Code §18100.5, which proves your authority without disclosing who gets what. Add a certified death certificate and the firm’s change-of-trustee forms, and the account re-registers in your name as trustee. From there you administer it under the trust’s terms.

This is the smoothest path of the three, which is a big part of why funded trusts exist. If you’re settling a trust and the account somehow never made it in, that’s a different problem — worth a conversation before you do anything else.

No beneficiary, no trust: affidavit or probate

An individually titled account with no beneficiary is probate property. Two paths:

• Small-estate affidavit (§13100). If the decedent’s total California estate — not just this account — is $208,850 or less (deaths on or after April 1, 2025), you can collect the securities with an affidavit 40 days after death. You must attach Judicial Council form DE-300 showing the current dollar limits. The affidavit works for stocks and brokerage accounts just like bank accounts. Our small-estates guide walks through the whole procedure.
• Probate. Over $208,850, the account waits for the court to appoint a personal representative, who transfers it with certified letters. That’s months, not weeks.

The medallion signature guarantee — the part nobody explains

Here’s the ordeal that catches almost every family. Transfer agents and many brokerages require a medallion signature guarantee on transfer paperwork — a special stamp from the STAMP program that guarantees your signature is genuine and puts the guaranteeing bank on the hook if it isn’t. It is an industry requirement, not a law. No statute says you need one. The transfer agent demands it anyway, and there’s no arguing.

The catch: banks and credit unions generally give medallion guarantees only to their own customers, and some branches won’t do them at all. A notary stamp is not a substitute — different animal entirely.

Practical order of operations: start with the brokerage’s own estate-transition team, because they can often handle the transfer in-house without a medallion. If you do need one, try your own bank first, then the decedent’s bank. Bring the death certificate, the account statement, and the exact form that needs the stamp. Expect to make an appointment.

Don’t skip the step-up in basis

Inherited stock gets a new cost basis equal to its date-of-death value under IRC §1014. That $30,000 of Apple your dad bought in 2009? If it’s worth $400,000 when he dies, your basis is $400,000 — the built-in gain vanishes. For community property between spouses, both halves step up (§1014(b)(6)).

But the step-up only helps you if it’s documented. Get date-of-death values for every position — most brokerages will produce a date-of-death valuation statement if you ask. Do it now, while it’s one phone call, not in five years when you sell and your CPA asks for numbers nobody wrote down. The same logic applies to inherited real estate.

Questions people actually ask

How long does it take to transfer stocks after someone dies?

A TOD or trust account with clean paperwork usually transfers in two to six weeks. The small-estate affidavit adds a mandatory 40-day wait after death before you can present it. Probate takes months. The most common delay isn’t the law — it’s chasing the medallion guarantee or resubmitting forms the transfer agent rejected.

What is a medallion signature guarantee and where do I get one?

It’s a stamp from a bank enrolled in the STAMP program that financially guarantees your signature on securities paperwork. It is not a notarization and a notary can’t substitute for it. Banks typically provide them only to existing customers, so start with your own bank — or ask the brokerage’s estate team whether they need one at all.

Do I pay tax on stocks I inherit in California?

Not on the inheritance itself. California has no inheritance tax, and the federal estate tax only applies to estates over $15 million per person (2026, permanent). Your cost basis steps up to date-of-death value under IRC §1014, so if you sell right away there’s usually little or no capital gain. Dividends and gains after the date of death are taxable to whoever owns the account.

Can I use the small-estate affidavit for a brokerage account?

Yes. Probate Code §13100 covers securities, not just bank accounts. The limit is $208,850 for the entire estate (deaths on or after April 1, 2025), you must wait 40 days after death, and you must attach form DE-300. If the estate is over the limit, the affidavit doesn’t work no matter how small the individual account is.

What happens if the TOD beneficiary died first?

If no surviving beneficiary is on the registration, the account falls back into the probate estate and passes under the will or intestacy — which usually means probate if the estate is over $208,850. This is a standard failure mode of beneficiary designations, and it’s why they need reviewing every few years.

Does a trust-owned brokerage account avoid the medallion problem?

Usually, yes. A successor trustee presenting a certification of trust and death certificate is changing the authorized person on an existing account, not transferring registered securities to a new owner — so most firms handle it without a medallion stamp. It’s one of the quiet, practical advantages of a funded trust.

The bottom line

The account title decides everything: TOD beneficiaries claim directly, successor trustees use a certification of trust, and everything else is either a $208,850-or-under affidavit or probate. Budget your patience for the paperwork, not the law — certified death certificates, the firm’s own forms, and possibly a medallion signature guarantee. And get date-of-death values documented before you do anything else; the §1014 step-up is worth real money, but only if you can prove it. If you’re sorting out a parent’s accounts and aren’t sure which bucket you’re in, talk to Eric — a short conversation usually settles it.

Sources: Cal. Prob. Code §§5500–5512 (Uniform TOD Security Registration Act); Prob. Code §§13100–13101 (small-estate affidavit, $208,850, deaths on/after 4/1/2025, Judicial Council DE-300); Prob. Code §18100.5 (certification of trust); IRC §1014 and §1014(b)(6) (basis step-up); IRC §2010(c) as amended by P.L. 119-21 (OBBBA, $15M exemption).