Inheriting investments can be complex. You may need to liquidate them. This means selling the assets. You would then receive the cash. You must instruct the investment firm to do this.
Writing this instruction can feel daunting. We will share sample letters. These are templates. They will guide you. They will help you write your own.
Use these samples as your starting point. They cover common scenarios. They simplify the process. Make it easy to manage your inherited assets.
Sample Letter To Instruct Investment Firm To Liquidate Inherited Investments
[Your Name]
[Your Address]
[Your Phone Number]
[Your Email Address]
[Date]
[Investment Firm Name]
[Investment Firm Address]
**Subject: Liquidation of Inherited Investments – Account [Account Number]**
Dear Sir/Madam,
I am writing to instruct you to liquidate all assets held in investment account number [Account Number], which I inherited from [Deceased’s Name] on [Date of Death].
As the sole beneficiary and executor of the estate, I am authorized to manage and liquidate these assets. A copy of the death certificate and relevant legal documentation confirming my authority were previously provided to your firm on [Date Documents Provided].
Please proceed with the liquidation of all holdings in the account at your earliest convenience. I request that the proceeds from the sale be transferred via wire transfer to the following bank account:
* **Bank Name:** [Bank Name]
* **Account Name:** [Your Name]
* **Account Number:** [Your Account Number]
* **Routing Number:** [Routing Number]
Alternatively, if a wire transfer is not possible, please issue a check payable to [Your Name] and mail it to my address listed above.
Kindly provide a detailed statement of all transactions and the final account balance upon completion of the liquidation.
Thank you for your prompt attention to this matter. Please contact me if you require any further information or documentation.
Sincerely,
[Your Signature]
[Your Typed Name]
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How to Write Letter To Instruct Investment Firm To Liquidate Inherited Investments
Subject Line: Clarity is Paramount
- Employ a subject line that is both succinct and informative.
- Example: “Liquidation Request – Account [Account Number] – Estate of [Deceased’s Name]”
- Avoid ambiguity; be forthright about the letter’s purpose.
Salutation: Formal but Approachable
- Begin with a formal salutation, but avoid being overly stiff.
- Acceptable options include: “Dear [Investment Firm Contact Person],” or “To Whom It May Concern,” if the contact person is unknown.
- Err on the side of formality initially; you can cultivate a more convivial tone later.
Introduction: Setting the Stage
- Clearly state your relationship to the deceased and the investment account.
- Mention the deceased’s full name, date of death, and account number.
- Example: “I am [Your Name], the executor of the estate of [Deceased’s Name], who passed away on [Date of Death]. This letter pertains to investment account number [Account Number].”
- Briefly allude to your intention to liquidate the assets.
Body Paragraphs: The Nitty-Gritty
- Express your explicit instruction to liquidate all assets within the specified account.
- Specify the exact account number again to forestall any misinterpretations.
- Indicate how you wish to receive the proceeds: check, wire transfer, or transfer to another account. Provide detailed instructions accordingly.
- If opting for a wire transfer, include the bank name, account name, account number, and routing number.
- For a check, specify the payee name and mailing address.
- State clearly whether you want to liquidate the entire portfolio at once or in tranches.
Supporting Documentation: Substantiating Your Claim
- Enumerate the documents you are enclosing with the letter.
- This typically includes a certified copy of the death certificate, Letters Testamentary (or Letters of Administration), and a copy of your government-issued identification.
- Specify each document individually: “Enclosed, please find: 1. Certified Copy of Death Certificate; 2. Letters Testamentary; 3. Copy of [Your State] Driver’s License.”
- Mention any additional documents that may be pertinent to the transaction.
Clarification and Contingencies: Addressing Potential Hiccups
- Proactively address any potential issues or questions the investment firm might have.
- Provide your contact information (phone number and email address) for expedient communication.
- State that you are available to furnish any further information or documentation required.
- Set a reasonable timeframe for the liquidation process, expressing your expectation for a prompt resolution.
Closing: Formal and Courteous
- Conclude with a formal closing, such as “Sincerely,” or “Respectfully,”.
- Follow with your full name, title (Executor of the Estate), and contact information (phone number and email address).
- Retain a copy of the letter and all accompanying documentation for your records.
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Frequently Asked Questions: Liquidating Inherited Investments
Navigating the liquidation of inherited investments can be complex. This FAQ section addresses common inquiries to assist you in this process.
What information should I include in my liquidation letter?
Your letter should include your full name, the deceased’s name, account numbers, the specific investments to be liquidated, and instructions for disbursement of the proceeds.
How should the proceeds be disbursed?
Specify your preferred method for receiving the funds, such as a check mailed to your address or an electronic funds transfer to your bank account. Include relevant account details.
Do I need to provide any supporting documentation?
Yes, you will typically need to provide a copy of the death certificate and documentation establishing your legal right to inherit the assets, such as letters testamentary or letters of administration.
What are the potential tax implications of liquidation?
Liquidating inherited investments may have tax implications. Consult with a tax advisor to understand potential capital gains taxes or other relevant tax liabilities.
How long does the liquidation process usually take?
The timeframe for liquidation can vary depending on the complexity of the estate and the investment firm’s procedures, but it generally takes several weeks to a few months.