Medallion Signature Guarantee: What Executors Need to Know

The Wall Executors Hit

You have letters testamentary. You have the death certificate. You have the account statement showing the deceased owned 400 shares of a company. You fill out the transfer agent's form, take it to get notarized, mail it in -- and it comes back rejected with three words: Medallion Signature Guarantee required.

This is one of the most common surprises in settling an estate, and one of the most frustrating, because a notary -- the thing most people reach for -- is specifically not accepted. Understanding why, and knowing where to go instead, saves weeks.

What a Medallion Signature Guarantee Actually Is

A Medallion Signature Guarantee (MSG) is a stamp-and-signature applied by an authorized officer at a participating financial institution. When they stamp your form, the institution is formally warranting three things about the securities transfer:

1. Your signature is genuine.
2. You have the legal authority to sign (as executor, you can transfer the deceased's securities).
3. You have the legal capacity to sign.

Crucially, the institution stands behind that warranty financially. If it turns out the signature was forged or the transfer was unauthorized, the guaranteeing institution can be held liable for the loss. That financial backing is the entire point -- it is why transfer agents trust an MSG to protect against the fraudulent transfer of securities, and why the bar to provide one is high.

Why This Comes Up in Probate

Executors run into MSGs whenever they need to move or sell the deceased's securities: individual stocks, bonds, and mutual fund shares. It comes up most often with shares held directly with a transfer agent rather than inside a brokerage account.

A transfer agent (companies like Computershare, Equiniti, or Broadridge) maintains the share register for a corporation. Many people hold stock this way -- through dividend reinvestment plans (DRIPs), employee stock purchase plans, or old paper certificates -- often without thinking of it as a "brokerage." To re-register those shares into the estate's name, transfer them to beneficiaries, or sell them, the transfer agent will almost always require an MSG on the transfer form.

You are less likely to need an MSG for assets held inside a brokerage account, where the brokerage itself administers the estate transfer using its own internal process. But the moment a transfer agent is involved, expect the MSG requirement. (Note that U.S. savings bonds have their own parallel requirement -- see our guide to claiming savings bonds after death -- and that transfer-on-death registrations can sometimes bypass all of this; see transfer-on-death brokerage accounts.)

MSG vs. Notary vs. Signature Guarantee

These three get confused constantly. The differences are what get executors' paperwork rejected.

Notary Public

A notary confirms your identity and that you actually signed. That is all. A notary makes no warranty about your authority to transfer securities and carries no financial liability for the transfer. By law, a notary public cannot provide a Medallion Signature Guarantee. If a form says it needs an MSG, a notarization will not satisfy it -- the transfer will be deemed incomplete or invalid.

Signature Guarantee (non-medallion)

Some institutions offer a plain "signature guarantee." It is not the same as a medallion guarantee and is often not accepted by transfer agents for securities transfers. When a form specifies Medallion, you need the medallion program stamp specifically -- do not assume a generic signature guarantee will pass.

Medallion Signature Guarantee

The MSG is the only one that certifies signature, authority, and capacity, backed by the institution's participation in an approved medallion program and its surety coverage. It is what transfer agents require.

The Three Medallion Programs (and Why Big Transfers Get Bounced)

Institutions provide MSGs through one of three approved programs:

• STAMP -- Securities Transfer Agents Medallion Program (the most widely used, common at banks and credit unions)
• SEMP -- Stock Exchange Medallion Program
• MSP -- New York Stock Exchange Medallion Signature Program

For an executor, the practical difference between them rarely matters -- transfer agents accept all three. What matters is surety coverage. Every medallion stamp is rated for a maximum dollar amount. An institution will not guarantee a transfer whose value exceeds the coverage tier its stamp is authorized for.

This is why a routine request can get refused on a large estate: the branch's medallion stamp may be authorized up to a certain limit, and a transfer above that limit needs an institution authorized for a higher surety category. If you are transferring high-value holdings, ask the institution what dollar limit its stamp covers before you rely on it. Finding out at the counter that your $2 million transfer exceeds their coverage wastes a trip.

Where to Get One

The reliable source is a bank, credit union, or brokerage where you or the estate already do business and that participates in a medallion program. Key realities:

• Most institutions serve only their own account holders. Walk-in service for non-customers is rare. If neither you nor the estate has an account at a participating institution, this becomes a real hurdle -- you may need to open an estate account first, which itself requires your letters and the estate's EIN.
• Not every branch has an authorized officer. The MSG must be applied by a specific trained employee. Smaller branches may have only one, or none. Call ahead.
• Cost varies. Many banks provide the stamp free to customers; others charge a modest fee. Non-customers, where served at all, may pay more.
• Brokerages count. If the estate holds a brokerage account, that brokerage is often the easiest place to get the MSG for transfers involving those or related securities.

What to Bring as an Executor

Because the guaranteeing officer is warranting your authority and the value, not just your identity, bring more than you would for a notarization:

• The transfer or re-registration form that needs the stamp -- unsigned. You must sign in front of the officer.
• Certified letters testamentary or letters of administration, proving you are the authorized fiduciary. Bring reasonably recent certified copies; some institutions want letters issued within a certain number of days.
• A certified death certificate.
• Your government-issued photo ID.
• Any original stock certificates involved in the transfer.
• Documentation of the securities' value (a recent statement or the transfer agent's valuation), so the officer can confirm the amount falls within their surety coverage.

Call the institution first and confirm its exact list -- requirements differ, and a missing document means a second trip.

How to Sign the Form

Sign in your fiduciary capacity, matching your letters exactly -- for example:

Jane Doe, Executor of the Estate of John Doe

Not simply "Jane Doe." The signature has to show you are acting as the estate's representative, not for yourself. And do not sign ahead of time: the whole value of the MSG is that the officer witnesses your signature. A pre-signed form cannot be guaranteed. Incorrect capacity and pre-signing are two of the most common reasons transfers get returned.

Common Problems and How to Get Past Them

"I'm not a customer anywhere that offers it." Open an estate account at a participating bank or credit union using your letters and the estate's EIN, then request the MSG there. If the estate has a brokerage account, start with that brokerage.

"The transfer is too large for their stamp." Ask about the surety limit up front and seek an institution authorized for a higher coverage tier. Large brokerages and bank private-client groups are more likely to carry higher-limit medallions.

"I live out of state from the estate." You still need an institution that will serve you and can confirm your out-of-state letters. A brokerage you already use, with a national footprint, is often easier than a local bank in the estate's state. This is a frequent snag when managing probate remotely -- solve the MSG source early rather than at the deadline.

"The letters are 'too old.' Some guarantors and transfer agents want letters certified within the last 60 days (sometimes 90). If yours are stale, order fresh certified copies from the probate court before your appointment.

"They want an affidavit of domicile too." Transfer agents often require an affidavit of domicile (confirming the deceased's state of residence) alongside the medallion-stamped transfer form. Ask the transfer agent for its full checklist so you assemble everything for one signing.

Step-by-Step

1. Identify each security and whether it is held with a transfer agent or inside a brokerage account.
2. Get the transfer agent's (or brokerage's) transfer packet and read the full requirement list -- MSG, affidavit of domicile, certificates, and any letter recency rule.
3. Confirm the date-of-death value of the securities so you know which surety tier you need.
4. Find a participating institution where you or the estate have a relationship; call ahead to confirm they offer MSGs, serve executors, cover your dollar amount, and to schedule the authorized officer.
5. Bring the unsigned form, certified letters, death certificate, ID, certificates, and value documentation.
6. Sign in your fiduciary capacity, in front of the officer.
7. Submit the stamped packet to the transfer agent and keep copies of everything.

How SwiftProbate Can Help

The Medallion Signature Guarantee is a small step that stalls a lot of estates, usually because no one knew it was coming or brought the wrong documents. SwiftProbate is probate task-management software that helps you organize the estate and understand each step: it flags when a securities transfer is likely to require an MSG, keeps your letters, death certificate, and value records together so you arrive at the counter with the right package, and tracks each transfer agent's checklist so nothing gets mailed in half-complete. It helps you stay organized and navigate the process -- it is not a law firm and does not provide legal advice. For guidance specific to your estate, consult a qualified attorney.

This article is for informational purposes only and is not legal advice. Consult a qualified attorney for guidance specific to your situation.