There are numerous ways that people can invest their money. Following is a list of some of the most common investment types and the processes to claim or transfer the proceeds.
- Stocks are types of investments that are traded through an exchange or over the counter market. Normally, they are handled through a stockbroker. A share of stock represents one unit of ownership in corporation. Stocks may be referred to as Common Stock or Preferred Stock.
- Bonds are interest-bearing certificates issued by a government or business. The simplest form of bond is a Debenture. Other forms of bonds include: Municipal Bonds (issued by province, country of other political subdivision), Income Bonds, Mortgage Bonds, and Collateral Trust Bonds.
- Funds - Mutual Funds and Exchange Traded Funds – are funds that acquire a portfolio of stock securities through mass purchasing power of man individual investors. These funds are generally purchased and managed through professional brokerage firms.
- Money Market Funds – similar to mutual funds where investments are in large money pools. They are much more flexible and allow for relative ease in withdrawal.
- Commodities – paper purchases of tangible goods for delivery on a specified date or in the future-items such as gold, metals, grain or other foods substances.
Transferring/Closing of Accounts
If the survivor is currently represented by a brokerage firm or representative, they should seek the advice of a qualified institution, lawyer, or accountant prior to making transfers. Fees are often assessed based on the size of the transaction.
Based on the title of ownership for each financial instrument and the direct wishes stipulated in a will, the executor and/or professional advisor will proceed with the proper transfers of all stocks, bonds, mutual funds, money market funds and commodities at the appropriate time.
Sole Ownership Accounts with no designated beneficiary must be included in probate proceedings – please note the term “probate” may still be used however the courts no longer issue “letters probate” in Ontario. The replacing document is called a Certificate of Appointment of Estate Trustee with a Will – and sometimes may require:
- A certified copy of the Death Certificate.
- Letters of Administration from estate (when there is no Will) or Letters of Testamentary (when there is a Will) and an indemnity agreement from the bank for estates under $100,000.00.
- Letter of Instruction from Executor with signature guaranteed
- Stock Power with signature guaranteed