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TaxYesterday I sent clarification to COL Financial regarding the procedure on how will the heir can get stock proceeds in case of Stock Holder’s Death and here is their reply:

In the unfortunate event of an account holder’s demise, the following are the documents to be submitted by the surviving spouse/heir:

  1. Death Certificate
  2. Either one of the following:
    1. If with testate or intestate proceedings, a court order appointing the executor/administrator and authorizing him to close the account and collect the proceeds;
    2. If without testate or intestate proceedings:
      1. If there is only 1 heir – Affidavit of Self-Adjudication
      2. If there is more than 1 heir – Deed of Extra-judicial Settlement of Estate
      3. In either (i) and (ii), submit also proof of filing of the Affidavit or Deed, as the case may be, with the office of the register of deeds
  1. Release, waiver, and quitclaim, holding COL free and clear from any action, claim or liability brought by third parties in relation to the closing of the account and release of the proceeds thereof.
  2. Proof of payment of estate tax or BIR Certification that the same is exempt from estate tax
  3. Identification documents of surviving heirs (photocopy of 1 government issued ID, with picture and signature)

Surviving heirs may then open an account with us to transfer all stock and cash positions from the deceased client’s account to the surviving heirs’ account.  Surviving heirs will have to submit identification documents and POB and accomplish account opening forms.

So it is clear based on COL Financial’s response that a proof of payment for the estate tax is necessary before a heir can claim the stocks. To all those who have account with COL Financial better share this post to your love ones so they know what to do just in case.