Series 24: 3.4.4. Death Of A Client

3.4.4. Death of a Client

If a client dies, the representative must cancel all open orders, mark the account “deceased,” and freeze the account.

All powers of attorney or third-party authorizations, such as discretionary authority, are immediately terminated. The executor of the customer’s estate typically transfers the assets in the account to an estate account. No changes can be made, however, until the proper legal documents are provided, which include: (1) letters testamentary (issued by a court to verify the identity of the executor), (2) inheritance tax