How do I acquire my deceased's wife share of our online stock trade account?
Full Question:
Answer:
Florida may be one of only a handful of states to recognize deposit account ownership in the form of tenancies in the entirety. In fact, when joint deposit accounts are opened by spouses in Florida, "T by E" is the default form of ownership. If your account was opened in another state, then the rule may be different.
Tenancy by the entirety has some characteristics different than other joint tenancies, such as the inability of one joint tenant to sever the ownership and differences in tax treatment. It is similar to joint tenancy because when a spouse dies the surviving spouse takes the entire estate in fee simple. Unlike joint tenancy, there is no unilateral right to division of property. Divisions can me made only in a divorce action or by mutual agreement. A major advantage of this type of tenancy is that the creditors of an individual spouse cannot reach the entireties property.
According to the etrade website, if an account is opened as a joint account with them, the account is owned equally. To them, that means a 50/50 split, so when one account holder dies, they want 50% to go to the estate of the account holder. For them it doesn't become the property of the other account holder.
Here is an excerpt from their customer account agreement:
"Each of us agrees that, on the death or disability of an Account holder, divorce of married Account holders, or other event that causes a change in ownership or capacity with respect to the Account, the remaining Account holder(s) will immediately give E*TRADE Securities official written notice of such change of ownership or capacity. E*TRADE Securities will not be responsible for any transfers, payments or other transactions in the Account made at the direction of a former Account holder or incapacitated Account holder before E*TRADE Securities actually received and had a reasonable amount of time to act on such official written notice. Following receipt of such official written notice, E*TRADE Securities may require additional documents and reserves the right to retain such assets in and/or restrict transactions in the Account as it deems advisable in its sole discretion to protect itself against any Losses. Any former Account holder and the estate of any deceased or incapacitated Account holder will remain jointly and severally liable for any Losses in the Account arising out of or relating to transactions initiated before E*TRADE Securities actually received and had a reasonable amount of time to act on such official written notice."
Interpretation of the agreement will fall to the federal courts since you and they are in different states. Florida law may not control.
The requests that they have made appear to be requests for documentation that you are authorized to act on behalf of your wife's estate. Either by small estate affidavit, approved by the probate court, or otherwise.
Small estates in Florida exist for estates valued at $75,000 at the time of death. There is a proedure to follow including submitting an affidavit sworn regarding the value of the estate. Please see the link below for more information on how it works.
If your wife's estate does not qualify as a small estate, you will have to probate her estate (through her will) or as an intestate estate. Please see the links below for more information.