More and more people in the UK are choosing to pass on shares to their children or grandchildren while they are still around to see them enjoyed. It is a lovely idea — but if any of those shares are held in an American or Canadian company, there is one small piece of paperwork that catches almost everyone out: the medallion signature guarantee.
In plain terms, it is a special stamp that US and Canadian registrars insist on before they will move shares from one person to another. It confirms your signature is genuine and that you are entitled to make the transfer. Crucially, it is not the same as a solicitor’s certification or a notary stamp — send those instead and the transfer will simply be refused, often after weeks of waiting.
The frustrating part for UK residents is that very few places over here are actually authorised to provide the guarantee. People commonly spend weeks posting original certificates back and forth and chasing banks, only to be turned away. When you are simply trying to do something generous for your family, that runs the joy out of it very quickly.
It really does not have to be that hard. With the right paperwork in place — usually proof of identity and clear evidence of ownership — the guarantee can be arranged correctly the first time, so the shares move smoothly and your gift arrives without months of delay.
If you are thinking of gifting, selling or transferring US or Canadian shares, the team behind Medallion Signature Guarantee can explain exactly what you need and handle it properly for you. Find out more at medallionsignature.co.uk/.
