Why You Shouldn’t Wait to Organize Your Physical Stock Certificates
In today’s digital world, it’s easy to forget that many investors still hold physical stock certificates—paper documents that represent actual ownership in a company. Whether received decades ago, inherited from a loved one, or saved as a memento, these certificates carry more than nostalgic value—they hold real financial worth.
But holding onto physical certificates without a plan can pose risks, especially when it comes to estate planning and ensuring a smooth transition for your heirs.
What Are Physical Stock Certificates?
A physical stock certificate is a paper document that proves ownership of shares in a company. Before the widespread use of electronic trading and digital accounts, this was the standard way to document investments.
While no longer required in most modern portfolios, some investors—particularly those who purchased shares years ago or received them through inheritance—still have these paper certificates stored away in safety deposit boxes, file cabinets, or even desk drawers.
The Hidden Risks of Holding Paper
If the holder of a physical stock certificate passes away without taking steps to organize or transfer those shares, their family may face a difficult and expensive process to claim what’s rightfully theirs.
Challenges can include:
- Delayed estate settlement: Paper certificates must often go through probate before being released to heirs.
- Difficulty verifying ownership: Lost, damaged, or unsigned certificates can complicate legal ownership.
- Higher costs: Replacing or reissuing certificates involves legal fees, transfer agent charges, and time.
- Tax uncertainty: Without accurate records, it may be difficult to establish the cost basis or value at the time of transfer.
Why It’s Important to Act Now
Organizing physical stock certificates while the holder is still living allows for faster, simpler, and more efficient planning. At Janney, we help clients:
- Deposit certificates into a brokerage account to protect their value and simplify access.
- Digitally record ownership, eliminating the risk of loss or damage.
- Integrate stock holdings into a larger financial or estate plan for tax efficiency and peace of mind.
- Work with your Financial Advisor to ensure your assets are aligned with your goals—and are ready for the future.
Leave Peace of Mind, Not Paperwork
Getting organized today can make a big difference tomorrow. Whether you’re preparing for retirement, managing inherited assets, or just want to simplify your financial life, now is the time to act.
If you or a loved one are holding physical stock certificates, visit your local Janney branch. We’ll help you secure and streamline your investments, giving you and your family confidence for the future.
Working With Janney
Depending on your financial needs and personal preferences, you may opt to engage in a brokerage relationship, an advisory relationship or a combination of both. Each time you open an account, we will make recommendations on which type of relationship is in your best interest based on the information you provide when you complete or update your client profile.
If you engage in a brokerage relationship, you will buy and sell securities on a transaction basis and pay a commission for these services. Our recommendations for the purchase and sale of securities will be based on what is in your best interest and reflect reasonably available alternatives at that time.
If you engage in an advisory relationship, you will pay an asset-based fee, which encompasses, among other things, a defined investment strategy, ongoing monitoring, and performance reporting. Your Financial Advisor will serve in a fiduciary capacity for your advisory relationships.
For more information about Janney, please see Janney’s Relationship Summary (Form CRS) on www.janney.com/crs which details all material facts about the scope and terms of our relationship with you and any potential conflicts of interest.
By establishing a relationship with us, we can build a tailored financial plan and make recommendations about solutions that are aligned with your best interest and unique needs, goals, and preferences.
Contact us today to discuss how we can put a plan in place designed to help you reach your financial goals.
Janney Montgomery Scott LLC, its affiliates, and its employees are not in the business of providing tax, regulatory, accounting, or legal advice. These materials and any tax-related statements are not intended or written to be used, and cannot be used or relied upon, by any taxpayer for the purpose of avoiding tax penalties. Any such taxpayer should seek advice based on the taxpayer’s particular circumstances from an independent tax advisor.
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