1. What is a Medallion Signature
Guarantee?
Over 6,000 brokerage firms and
financial institutions belong to the
Medallion Signature Guarantee
Program. The application of a
Medallion Signature Guarantee
provides the authentication of the
guarantor that the endorser of a
certificate is the registered owner
and has the legal authority to sign
the certificate. The guarantor must
know the endorser and stand behind
its guarantee.
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2. What is Restricted Stock?
This generally refers to stock
purchased in a private placement
directly from an issuer before the
company is public. Restricted stock
also may have been acquired through
a corporate reorganization or
acquisition, in return for services,
or purchased from an original
shareholder.
Restricted stock frequently will
have a legend printed on the back of
the stock certificate(s) stating
that the shares cannot be sold or
transferred without either
registration under the Securities
Act of 1933 or an exemption from
such registration, such as meeting
the requirements of Rule 144.
However, the absence of a legend
does not mean that there are no
restrictions on the sale of the
shares. See also Removing a
Restricted Legend.
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3. What shareholder information is required to issue stock?
1. Name of Shareholder: Full name as on birth certificate, drivers license, or passport (No Initials).
2. Unique Government Identification Number: (Required for OFAC Compliance, Dividend Reporting (1099s), and Identity Protection.)
U.S. Shareholders: Social Security or Tax ID Number
Canadian Shareholders: Social Identification or Business Identification Number
Other Foreign Shareholders: Passport or other Government Issued ID Number
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3. Mailing Address
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4. Where do I send certificates for
transfer?
All transfers should be insured and
mailed to: Colonial Stock Transfer
Company at 66 East Exchange Place,
Salt Lake City, UT 84111. Important Note: Whenever
you mail certificates, it is
advisable to insure the certificates
for 3% of their current market
value. This is the approximate
amount charged by most surety
companies to obtain the surety bond.
This bond is required to replace the
certificate should it be lost in
transit.
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5. How do I transfer shares to another
person?
Example: From: John A. Doe, To: Mary Q.
Smith.
Complete the assignment
designating the new owner on the
back of the certificate. Have all
registered stockholders endorse the
certificate and obtain a Medallion
Signature Guarantee for the
endorsements. For additional instructions, please see our stock transfer page.
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6. How do I transfer shares from a
custodian to a minor who is now of
age?
Example: From: John A. Doe, Custodian
for Jane A. Doe, UGMA VA, To: Jane A.
Doe.
Have the custodian endorse the
certificate and complete the Stock
Power assigning the shares to the
former minor. Obtain a Medallion
Signature Guarantee for the
endorsement and include a certified
copy of the minor’s birth
certificate.
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7. How do I transfer shares from a foreign deceased individual?
Example: From: John A. Doe, To: Mary J.
The executor(s) or administrator(s)
of the estate must provide Colonial with the original certificate(s) and the following:
1. Transfer Instruction Letter, assigning the stock to
the beneficiary and endorsing the
stock. All signatures must be
guaranteed with a Medallion
Signature Guarantee. Please be sure to include proper payment (fees are listed in this form). This can be downloaded from our shareholder forms page.
2. A notarized Affidavit of Domicile. This can be downloaded from our shareholder forms page.
3. A certified copy of the death certificate.
4. A (probate) court certified copy of the Appointment of the Executor/Administrator, dated and certified within 60 days of the transfer request. If the decedent’s estate has not been probated, instead of providing the Appointment of the Executor/Administrator, you may provide one of the following:
--A Small Estate Affidavit or other official document which lists the legal heirs and their signatures certified by the probate court of the decedent’s State of residence within 6 months of the date of transfer. Please note that the value of the estate must not exceed small estate statute limits. You can visit the Securities Transfer Association (STA) website www.stai.org and view the STA Guidelines, Appendix VII for requirements.
--Waiver of Probate insurance bond: By purchasing an insurance bond the requirement to have the estate probated will be waived. An insurance bond protects Colonial and its clients from any liabilities incurred in the future. You may obtain an insurance bond independently from an insurance company of your choice. However, as a courtesy you may purchase a bond from our insurance provider. Please note that when using a Waiver of Probate Bond, the decedent's estate value must not exceed small estate statute limits. In addition to the bond premium and transfer processing fees, you will be required to pay a $25 convenience fee for all Waiver of Probate transactions.
5. A Federal Transfer Certificate obtained from the Internal Revenue Service, or a notarized affidavit by a legal representative. The affidavit must state that the deceased shareholder, at the date of death, was neither a resident nor a citizen of the U.S., and the portion of the Estate situated in the U.S. did not exceed:
- $60,000 for death's after January 1, 1977,
- $30,000 for death's between November 14, 1966 and December 31, 1976, or
- $2,000 for death's before November 14, 1966.
If the estate exceeds the allotted amount, then a Federal Transfer Certificate is required. Note, however, if a United States Executor or administrator is appointed for the foreign deceased shareholder, a Federal Transfer Certificate or affidavit is not required.
To obtain a Federal Transfer Certificate contact the IRS at:
Estate Tax Group S:SE:SP:EG:EC:1205
IRS SB/SE Estate and Gift Tax Program
820 First St., N.E.: UCP-CNN-730
Washington, DC 20002-4243
(202) 874-1660
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8. How do I transfer shares from a
domestic deceased individual?
Example: From: John A. Doe, To: Mary J.
The executor(s) or administrator(s)
of the estate must provide Colonial with the original certificate(s) and the following:
1. Transfer Instruction Letter, assigning the stock to
the beneficiary and endorsing the
stock. All signatures must be
guaranteed with a Medallion
Signature Guarantee. Please be sure to include proper payment (fees are listed in this form). This can be downloaded from our shareholder forms page.
2. A notarized Affidavit of Domicile. This can be downloaded from our shareholder forms page.
3. A certified copy of the death certificate.
4. A (probate) court certified copy of the Appointment of the Executor/Administrator, dated and certified within 60 days of the transfer request. If the decedent’s estate has not been probated, instead of providing the Appointment of the Executor/Administrator, you may provide one of the following:
--A Small Estate Affidavit or other official document which lists the legal heirs and their signatures certified by the probate court of the decedent’s State of residence within 6 months of the date of transfer. Please note that the value of the estate must not exceed small estate statute limits. You can visit the Securities Transfer Association (STA) website www.stai.org and view the STA Guidelines, Appendix VII for requirements.
--Waiver of Probate insurance bond: By purchasing an insurance bond the requirement to have the estate probated will be waived. An insurance bond protects Colonial and its clients from any liabilities incurred in the future. You may obtain an insurance bond independently from an insurance company of your choice. However, as a courtesy you may purchase a bond from our insurance provider. Please note that when using a Waiver of Probate Bond, the decedent's estate value must not exceed small estate statute limits. In addition to the bond premium and transfer processing fees, you will be required to pay a $25 convenience fee for all Waiver of Probate transactions.
5. An Inheritance Tax Waiver is required if the decedent resided in one of the following states: Alabama, Hawaii, Illinois, Missouri, Montana, North Dakota, Oklahoma, South Dakota, West Virginia, Indiana, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Puerto Rico, and Tennessee. If an inheritance tax waiver is not required, the Medallion Guarantor will affix a tax waiver stamp on the transfer instruction letter. To obtain an inheritance tax waiver, beneficiaries should contact the state's Revenue or Tax Department and view the STA Guidelines, Appendix VI, for requirements varied by state.
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9. How do I transfer shares from a
deceased joint tenant with rights of survivorship?
Example: From: John A. Doe and Mary
J. Doe JT TEN, To: Mary J. Doe.
The
surviving tenant(s) must submit the original certificate(s) and the following:
1. Transfer Instruction Letter, assigning the stock to
the beneficiary and endorsing the
stock. All signatures must be
guaranteed with a Medallion
Signature Guarantee. Please be sure to include proper payment (fees are listed in this form). This can be downloaded from our shareholder forms page.
2. A notarized Affidavit of Domicile. This can be downloaded from our shareholder forms page.
3. A certified copy of the death certificate.
