Transfer or Close Investment Accounts

What you'll need

• Account statements showing account numbers and institution names
• Death certificate (certified copies)
• Letters testamentary if no beneficiary is designated
• Beneficiary's account information for transfers

Steps

1. Identify all investment accounts — brokerage accounts, IRAs, Roth IRAs, 401(k)s, 403(b)s, and any other retirement accounts.
2. Contact each institution's estate services department. Most major brokerages (Schwab, Fidelity, Vanguard) have dedicated estate services teams.
3. Ask about beneficiary designations on each account. Accounts with named beneficiaries transfer directly to those individuals outside of probate.
4. For inherited IRAs, the rules are complex and time-sensitive. Beneficiaries generally have options for how to take distributions, and some choices must be made within a specific timeframe. Ask the institution about the inherited IRA options available.
5. For accounts without beneficiary designations, the account becomes part of the estate and goes through probate before it can be transferred.
6. Do not liquidate accounts without understanding the tax implications — inherited assets often receive a step-up in cost basis that can significantly reduce capital gains taxes.