Medallion Signature Guarantee: What To Do After Loss?
If someone who has ownership of stock passes away, they may have made provisions beforehand. If their spouse has joint stocks, then the spouse will generally become the complete owner. However if they had individual stocks in their own name, then the process changes. If the deceased has stocks but doesn’t have a will with a beneficiary, then there will be probate processing, which will address their estate. The court will choose who receives the shares and then ask the executor to pass over the ownership. They will organise the correct documents, so that they can be given to the transfer agent, who deals with the issuer of the finances and securities. Documents needed are a testamentary letter, or a trust instrument, a verified death certificate copy, a copy of the executor’s driving licence and a copy of the transfer instruction documents. The transfer agent will correlate and finish the passing over of ownership. A medallion signature guarantee will be needed to confirm the signature of the executor. Call us or email for all US stock transfers.
Medallion Guarantee: Name Changing On Deed Poll
A Medallion Signature Guarantee Stamp was created to stop fraud over the border when selling or transferring North American securities. For this to be achieved, your identity would first have to be confirmed. However, what happens if you have changed your name by Deed Poll?
A Deed Poll shows both your old and new name, so you would assume this would count as a proper form of ID. Unfortunately a Deed Poll only shows that your name has changed, but does not prove what your name was originally, as it does not have your date of birth included. This means your passport, birth certificate or driving licence are valid IDs, but not the actual Deed Poll.
If you want to apply for a Medallion Guarantee, you need to prove who you are. If you’ve changed your name then you should provide a copy of the Deed Poll itself, a copy of the birth certificate, and photo ID such as your passport with the name change, or your driving licence. For any questions about Deed poll name changing or UK Stock transfers, call Fraser and Fraser today.
Medallion Signature Guarantee Surety Limit
A Medallion Signature Guarantee, has what it known as a Surety Limit. This is the maximum amount of money that can be used. How much the stock is worth must be calculated, before the stamp provider can secure the Medallion Signature. It must be able to cover all of the transferable security.
A Medallion Stamp will have a code specifically for the monetary value. The prefixes are A,B,C,D,E,F,X,Y and Z, stretching from 100 thousand to 10 million dollars depending on the company.
A transfer document has the Medallion Stamp secured to it, but the stock value can not go above the limit of the medallion. It can be risky for the Signature Guarantee, particularly if there is a chance of the stock rising. Whoever has the stamp affixed, could be responsible for any potential losses, if there are any faults with the Medallion.
Although it may feel like an inconvenience to have to get a Medallion Signature, it is a safe way to allow genuine bonds and securities to be transferred or sold, so it is definitely worth it.
The Differences Between Medallion Signature Guarantees and Notary Public Stamps
Both of these are for confirming identification. Single documentation, for example, would need to be protected from any fraudulence.
Notary public stamps confirm someone signing, by looking at their identification and then stamping the document to make it final. Medallion
signature guarantee has similar attributes to a stamp, but they both have their own motives.
The most recognisable variation between the two is the sort of documentation they use. A medallion guarantee is meant particularly for transferring money
and bank security, as well as finance. Whereas a notary stamp confirms identity on a number of legalised documentation, such as wills, and contracts.
Originally notary stamps had a seal that was embossed. Nowadays they are done with black ink. These are more dependable and less expensive.
A medallion signature uses a green stamp that is difficult to fake or recreate, as a name is then signed on it. Medallion signatures use a barcode for an extra
security measure. Call today for all US Stock transfers.
Medallion Signature Guarantee, not to be confused with notarization
A medallion signature guarantee should not be confused with notarization as it has a different purpose and cannot be carried out by a notary unless he or she is certified in a financial institution’s Medallion Signature Guarantee Program.
A medallion signature guarantee is, in short, the certification from the issuing financial institution’s certification that a signature related to the transfer or sale of securities is authentic. Only banks or other financial institutions that have been certified to issue medallion signature guarantees can provide this service.
Prevent the unauthorised transfer of securities
The Medallion Signature Guarantee Program makes it harder for people to steal your securities. Medallion signature guarantees are insisted on by transfer agents as they limit their losses and liability if a signature turns out to be forged.
Medallion signature guarantees will not be able to be provided by a financial institution unless they are a member of a recognised Medallion Signature guarantee Programme. Call Fraser and Fraser for all your US stock transfers.
How can I obtain a Medallion Signature Guarantee if I am in the UK?
Fraser and Fraser offer the Medallion Signature Guarantee service to all UK investors residing in the UK. There are very few firms in the UK that have a Medallion Signature Guarantee stamp, but this is one of our specialist services.
How much is a Medallion Signature Guarantee in the UK?
A Medallion Signature Guarantee can be used to verify the identity of parties involved in transfers and people agreeing to the documents in question. Any organisation that issues a Medallion Signature Guarantee will be liable if your signature is forged.
Each application we receive is assessed on an individual basis, bust prices are as little as £195 per line of stock. We will need to verify all identities prior to the issue of a medallion signature stamp, so we will require all parties to provide passport ID and proof of current address.