In most cases, you’ll need to use a broker or another authorised service to sell US shares. However, things can become a little less straightforward when shares have been inherited, particularly if you live outside the United States. The first step is working out exactly how the shares are currently held.
How Are the US Shares Held?
US shares aren’t all held in the same way. They might sit within a brokerage account, be registered directly in the shareholder’s name or be managed through a transfer agent. If you already have access to a brokerage account containing the shares, selling them may be relatively simple. If the shares are held directly, you may need to transfer them to an account that allows trading before they can be sold.
Inherited Shares
Inherited US shares can involve additional paperwork. Before they can be sold, ownership will usually need to be transferred from the decedent to the beneficiary or the personal representative administering the estate. The documents required will depend on how the shares were held and the circumstances of the estate.
Can A Transfer Agent Sell the Shares?
Sometimes. Certain transfer agents offer facilities that allow eligible shareholders to sell shares directly through them. This doesn’t mean you can simply sell the shares privately yourself, though. The sale still needs to take place through an appropriate authorised route.
Before Selling US Shares
Start by finding out which company holds or administers the shares and what documentation they require. If the shares form part of an estate, it’s also important not to sell or transfer them before you have the necessary authority to do so.
Read more information on inherited assets, dealing medallion signature guarantees, understanding shareholdings and what to expect from the US stock market.
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