Frequently Asked Questions
The following questions and answers commonly arise during the transfer of shares.
What is a Letter of Instruction for Transfer Request?
A Letter of Instruction for Transfer Request is an inclusive document that provides the information necessary to transfer your shares. You may draft your own Letter of Instruction for Transfer Request; any personal letter, however, must include or enclose all information listed in the Stock Transfer Instructions. [return to top]
What is a Stock Power?
A Stock Power is a single form that can replace the need for multiple assignment forms on the reverse side of multiple stock certificates. The form also accommodates book-entry shares as well as certificated shares. [return to top]
What is a Medallion Signature Guarantee, and how do I obtain one?
Many financial institutions, including banks, credit unions and brokerage firms, are members of the Medallion Signature Guarantee Program(s). Through a Medallion Stamp, the guarantor attests that the endorser or person(s) signing the certificate(s) or transfer instructions is the registered owner(s) or the appropriate representative of the owner(s) with the legal authority to execute the document(s). The Medallion Stamp Guarantee is necessary for First Shareholder Services to change the registered ownership of the shares. If you are executing as representative of the shareholder, you will be required to provide certain legal documents to prove your authority to do so. [return to top]
What is a registration?
The registration of shares includes the name(s) and/or title(s) of the person(s) listed on the records of the issuer and the stock certificates, and the manner in which the shares are held (such as Joint Tenants with Right of Survivorship, Tenants in Common, etc.). [return to top]
What are the different types of registrations available?
The list below provides examples of the capacities in which shares may be registered. (NOTE: Not all forms of registration may be available under the laws of your state.)
- Individual registration
Individual ownership. Upon the death of the individual, the shares become part of the estate and are subject to probate proceedings.
- Joint tenant with right of survivorship registration
A form of ownership where two or more individuals jointly own shares and, upon the death of one joint owner or "tenant," the surviving owner(s) receive the decedent's interest in the shares.
- Tenants by the entirety registration
A form of ownership recognized by certain states where a husband and wife jointly own the shares, but where neither spouse may independently transfer his/her interest in the shares during the lifetime of the other spouse. Upon the death of a spouse, the decedent's interest passes to the survivor.
- Tenants in common registration
A form of ownership where two or more individuals jointly hold shares. Each tenant owns an undivided interest, which upon his/her death passes to his/her estate or devisees, not to the surviving tenant(s).
- Transfer on death (TOD) registration
A form of individual or joint tenant ownership where a beneficiary has been designated upon the death of the owner(s). Only one beneficiary can be designated per registration. Until the death of the registered owner(s), the beneficiary has no rights in, or with respect to, the shares. Upon the owner's death, ownership automatically passes to the TOD beneficiary. Not all states allow TOD registrations.
- Custodial registration
A form of ownership where the shares are registered in the name of a custodian for the benefit of a minor (or other person suffering from a legal incapacity). A custodian must be used in all registrations of shares for minors. Generally, a custodian may be appointed through the Uniform Transfer to Minors Act (UTMA) as adopted by your state (UTMA has replaced the Uniform Gift to Minors Act in most states).
- Trust registration
A form of ownership where the shares are registered in the name of the trust. Trusts may be established and governed by either a trust agreement created during the lifetime of a grantor (inter vivos trust) or through a grantor's will (testamentary trust). The general requirements for registering securities in the name of a trust include:
- the name(s) of the trustee(s),
- the name of the trust or the grantor or, in the case of a testamentary trust, the name of the deceased, and
- the date of the trust (not applicable for a testamentary trust). [return to top]
Where do I send the certificate for transfer?
NOTE: We recommend sending stock certificates by registered mail, insured for the greater of 1.5% of the market value of the underlying shares or $50.00. This insurance will offset, if not cover, the cost of the surety bond necessary to replace lost certificates.
If using the U.S. Postal Service, send all requested documentation to:
First Shareholder Services
PO Box 29522 (FCC61)
Raleigh, NC 27626-0522
If using an overnight delivery, please use the following address:
First Shareholder Services
4300 Six Forks Road (FCC61)
Raleigh, NC 27609-5718
All requests for transfer should include a completed W-9 form for the transferee (or in transfers involving multiple transferees, the primary transferee – the individual to whom dividends should be reported to the IRS). The form Letter of Instruction for Transfer Request provided on the Forms page of this website contains a substitute W-9 satisfying this requirement. [return to top]
How do I transfer my shares to another person?
Example: From John Smith to Mary Williams
Use the Letter of Instruction for Transfer Request found on the Forms page of this website. All of the current registered stockholders must sign or endorse the Letter of Instruction for Transfer Request, and all signatures must have a Medallion Signature Guarantee. Alternatively, you may complete a Stock Power form, which likewise requires the endorsement of all current registered holders and a Medallion Signature Guarantee. [return to top]
How do I remove a custodian from the account of a minor who has reached the age of majority?
Example: From John Smith, Custodian for Mary Williams UTMA to Mary Williams
The custodian or former minor must complete the Letter of Instruction for Transfer Request assigning the shares to the former minor. A Medallion Signature Guarantee is not required as long as the shares are being registered only to the minor. A certified copy of the minor's birth certificate must be submitted with the Letter of Instruction for Transfer Request, together with the relevant stock certificates. [return to top]
At what age can a minor become the only name on the registration?
The "age of majority," which controls the age at which an individual may hold securities in his/her own name, varies among the states. Please contact your state for this information. [return to top]
How do I transfer shares from a deceased individual?
Example: From John Smith to Mary Williams
The executor(s) or administrator(s) of the estate (in our example, of John Smith) must complete the Letter of Instruction for Transfer Request, transferring the stock to the intended beneficiary(s) (Mary Williams). The signature(s) must be guaranteed with a Medallion Stamp. The following items are additionally required:
- A notarized, completed Affidavit of Domicile.
- An Inheritance Tax Waiver, if required by the decedent's state of residence. You should contact the relevant state to determine if a waiver is required. [return to top]
How do I transfer from a Joint Tenant with Right of Survivorship registration when one of the parties is deceased?
Example: From John Smith (deceased) and Mary Williams JT TEN WROS to Mary Williams
The surviving tenant(s) (in our example, Mary Williams) must complete and sign a Letter of Instruction for Transfer Request requesting that the shares be registered solely in his/her name. A Medallion Signature Guarantee is not required if the shares will remain in the surviving tenant's name. The following documents are required with the Letter of Instruction for Transfer Request:
- A notarized and completed Affidavit of Domicile for the decedent.
- A certified copy of the Death Certificate.
- Some states require an Inheritance Tax Waiver. Beneficiaries should contact the state to determine if a Waiver is required. [return to top]
How do I change my name or registration on my shares since I became married?
Example: From Mary Jones to Mary Jones Williams
Complete and sign the Letter of Instruction for Transfer Request indicating the name change. In our example, the shareholder would sign: "Mary Jones, now known as Mary Jones Williams." The signature or endorsement must have a Medallion Signature Guarantee. [return to top]
How do I transfer my shares into a trust registration?
Example: From William Smith to William Smith TTEE U/A DTD 01/30/09 William Smith Trust
Complete the Letter of Instruction for Transfer Request and have it endorsed by all current registered shareholder(s), with a Medallion Signature Guarantee. The Letter of Instruction for Transfer Request should contain the following information: the full name of the trustee(s), title of the trust, date of the trust agreement, taxpayer identification number of the trust, and complete mailing address for the trust/trustee. [return to top]
What do I do if my stock certificate(s) is/are lost, stolen or destroyed?
You must provide us a letter identifying the stock certificate(s) that has/have been lost, stolen or destroyed. Upon receipt of that notice, we will place a stop on the recordkeeping system for the affected stock certificate(s) and notify SIC of the loss. We will then provide you with instructions and surety bond documents to have the certificate(s) replaced. The cost of the bond necessary to replace stock certificates is generally the greater of 1.5% of the market value of the lost certificate(s) or $50.00.
If the certificate(s) is/are recovered prior to the issuance of the replacement shares, you must provide us with another letter stating that fact and asking that we remove the stop on the recovered shares. [return to top]
How do I replace a dividend check?
You must provide us a letter identifying the lost, stolen or misplaced dividend check, including the issuing company's name and the approximate date on the check. Upon receipt of your notice, we will place a stop on the affected check (if not previously presented for payment) and issue a replacement check. [return to top]
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