institutions qualified under the Internal Revenue Code; they cannot be individ-uals. Individuals may, however, act as trustees of Keogh plans. Certain brokers, may act as custodians of IRA’s. Letters need to be from custodian with a medallion signature guarantee from the custodian. In such case, the shares should be registered “ABC Securities Inc. Custodian John Doe IRA Dated _____________”.
5.02 Transfer to Trustee of Testamentary Trust. Transfer requires the documents required by Guideline 4.03. Transfer from the deceased trustee of a testamentary trust to a successor trustee requires:
(a) if the state of residence issues a court certificate appointing a successor,
(i) certified copy of court appointment; and
(ii) endorsement of successor (with acceptable medallion signature guarantee).
(b) if the state of residence does not issue court appointments to a successor,
(i) certified copy of the will creating the testamentary trust; and (ii) endorsement by the named successor trustee (with acceptable
medallion signature guarantee).
5.03 Transfer by Trustee to Third Person. Transfer requires endorse-ment by the trustee(s) (with acceptable medallion signature guarantee).
5.04 Transfer from Decedent Claimed to Be Trustee. When a security registered in the name of a decedent is claimed not to belong to his estate but to a trust estate for which he acted as trustee, transfer requires:
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(a) endorsement by the executor or administrator of the decedent’s estate (with an acceptable medallion signature guarantee) plus the documents required by Guideline 4.03; or
(b) a release by the executor or administrator (with an acceptable medallion signature guarantee) plus the documents required by Guideline 5.06 or 5.07.
Comment: In order for an asset to be included in a trust for which a deceased trustee acted, it should be listed in the inventory of assets granted to the trust by the grantor. This is frequently known as “Schedule A” and can then be certified as part of the trust instrument. In addition, the processor would require certification that the trust was not revoked during the lifetime of the
“Grantor”.
5.05 Transfer from Deceased Trustee Claimed to be Beneficial Owner. Where a security registered in the name of a decedent as trustee is claimed not to belong to a trust but to the decedent’s estate, transfer requires;
(a) endorsement by the successor trustee (with acceptable medallion signature guarantee) plus the documents required by Guideline 4.02 or 4.03; or
(b) a release by the successor trustee plus the documents required by Guideline 4.02; or
(c) if there is no successor trustee, a release from the beneficiary (with acceptable medallion signature guarantee) plus the documents required by Guideline 4.02; or
(d) if the trust was revoked by the grantor during his or her lifetime, a copy of the revocation (with acceptable medallion signature guarantee); or
(e) a court order authorizing the transfer.
5.06 Transfer by Co–Trustee. Where two or more trustees are named, the endorsements of all (with acceptable medallion signature guarantee) are necessary to transfer a security unless the relevant state statute or the trust instrument permits fewer to act. If the relevant state statute and the trust instrument do not so permit and fewer than all the named trustees present a security for transfer, transfer requires:
(a) (i) endorsement by the presenting trustee(s) (with acceptable medallion signature guarantee), and
(ii) satisfactory evidence of the death or incapacity of the non-endorsing trustee(s); or
(b) a court order authorizing the transfer.
5.07 Transfer by Successor Trustee. Transfer requires:
(a) endorsement by successor trustee(s) (with acceptable medallion signature guarantee) plus a court order or court certificate naming the successor trustee; or
(b) a court order authorizing the transfer.
5.08 Transfer from Fiduciary Capacity to Individual Name of Trustee (or to Nominee). Transfer requires:
(a) endorsement by the trustee (with acceptable medallion signature guarantee); or
(b) a court order authorizing the transfer.
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There are several circumstances which create owners of securities who are adjudged to be incompetent, such as impaired capacity due to age or injury as well as mental or emotional illness. Minors are persons who have not attained the age of majority as defined in the laws of their state of residence.
Legal representatives for incompetents are appointed by the court as guardian, conservator or committee. Minors may have court appointed guardians or a custodian may be created under Uniform Gift to Minors Act, Uniform Transfers to Minors Act or Uniform Custodial Trust Act. In some states, the age referred to in the state’s UGMA or UTMA differs from the age of majority in that state.
In such cases, the age stated in the statute governs.
6.01 Transfer to Minor or Incompetent. Registration of a security owned by an incompetent should refer to a committee for the incompetent.
Registration of a security owned by a minor should refer to a guardian or a custodian for the minor.
Comment: Most transfers to and by minors are governed by the UGMA or UTMA, if enacted in the relevant jurisdiction, under which securities transferred to minors are registered in the name of a custodian for the minor.
However, the UGMA and UTMA do not apply to all transfers to minors. For example, transfers to minors for value would not be governed by the UGMA, nor would transfers by a court appointed guardian. Securities should not be registered without reference to a guardian or custodian.
6.02 Transfer to Guardian or Committee by Third Person. Transfer requires:
(a) endorsement by the third person (with acceptable medallion signature guarantee); and
(b) the court order or a certified copy of the instrument or extract thereof appointing the guardian or committee.
6.03 Transfer from the Name of the Minor or Incompetent to Guardian or Committee. Transfer requires the court order or a certified copy of the instrument or extract thereof appointing the guardian or committee.
6.04 Transfer from the name of the Minor or Incompetent to Third Person. Transfer requires:
(a) endorsement by the guardian or committee (with acceptable medallion signature guarantee); and
(b) the court order or a certified copy of the instrument or extract thereof appointing the guardian or committee.
Comment: A parent may not transfer securities registered in the name of his or her minor child unless he or she is legally appointed guardian or furnishes satisfactory indemnification to the processor.
6.05 Transfer by a Guardian or Committee to Third Person.
Transfer requires endorsement by the guardian or committee (with acceptable medallion signature guarantee).
6.06 Transfer by Guardian or Committee to Incompetent whose Disability has ended. Transfer requires endorsement by the guardian or