When administering an estate in which there are US or Canadian stocks and shares, the personal representatives (executors or administrators) will need to either transfer those stocks and shares to the beneficiaries of the deceased's estate or sell them.
In either case, the personal representatives may need to obtain a Medallion Guarantee (also referred to as a Medallion Barcode or Signature Guarantee).
The Medallion Guarantee stamp is a form of certification which confirms that the person signing the share transfer has the authority to do so. It acts as a safeguard against forged signatures.
For those living outside the US, finding a Medallion Guarantee provider can be challenging.
We are one of only a handful of providers in the UK authorised to issue the Medallion Guarantee Stamp. We primarily provide this service in connection with the administration of a deceased's estate. However, we are also able to provide the Medallion Guarantee as a stand-alone service to other individuals, in certain circumstances.
In all cases, our fees are assessed on an individual basis. Please contact us to discuss your requirements and we shall advise whether we are able to assist you and, if we are to do so, of the documentation required.
Frequently asked questions
What is a Medallion Guarantee?
The Medallion Guarantee (sometimes referred to as a Medallion Signature Guarantee or Medallion Barcode) is a specialised form of certification used in the United States and Canada in connection with the transfer of securities such as stocks and shares.
When shares in a US or Canadian company are transferred — whether as part of an estate administration, a gift, or a sale — the transfer agent (the organisation responsible for processing the transfer on behalf of the company) requires confirmation that the person authorising the transfer is who they say they are and has the legal authority to sign the transfer. The Medallion Guarantee provides that confirmation.
How does the Medallion Guarantee work?
The Medallion Guarantee takes the form of a stamp or barcode applied to the transfer documentation by an institution that is an authorised member of one of the recognised Medallion Guarantee programmes. The stamp certifies:
- the identity of the person signing the document;
- that their signature is genuine; and
- that the signing party has the legal capacity and authority to transfer the securities in question.
The guaranteeing institution takes on financial liability for any losses arising from a fraudulent or unauthorised transfer, which is why only approved and regulated members of the scheme are permitted to issue the stamp.
Why is the Medallion Guarantee needed?
Without a valid Medallion Guarantee, US and Canadian transfer agents will typically refuse to process a transfer of securities. It is therefore an essential step in any transaction involving the transfer or sale of US or Canadian stocks and shares — including, most commonly, during the administration of a deceased person's estate where those assets form part of the estate.
Why is it difficult to obtain a Medallion Guarantee outside the US and Canada?
Medallion Guarantee providers must be members of an approved programme, such as the Securities Transfer Agents Medallion Program (STAMP). Membership of these programmes has historically been dominated by US and Canadian financial institutions. As a result, there are very few providers in the United Kingdom and elsewhere outside North America, which can make obtaining the stamp a challenge for those dealing with US or Canadian securities from abroad.
What is the difference between a Medallion Guarantee and a notarisation?
These are two distinct forms of certification and one cannot be substituted for the other. A notarisation (or notarial certificate) confirms the identity of a signatory and the authenticity of their signature, but it does not carry the financial backing or the regulatory standing required by US and Canadian transfer agents. Transfer agents will not accept notarisation in place of a Medallion Guarantee.
Who needs a Medallion Guarantee?
Anyone who needs to transfer or sell US or Canadian securities may require a Medallion Guarantee. This commonly arises in the context of estate administration, where personal representatives (executors or administrators) need to deal with stocks and shares held by the deceased in US or Canadian companies. It can also arise in other contexts, such as where an individual wishes to transfer securities as a gift or restructure their holdings.
What documents will I need to provide?
The documentation required will depend on the circumstances of each case. In the context of an estate, this will typically include the grant of probate or letters of administration, death certificate, evidence of the personal representatives' identity, and the relevant transfer forms issued by the transfer agent. We will advise you of the specific documentation required once we have assessed the particular circumstances of your case.
How long does the process take?
This will depend on the complexity of the matter and the documentation involved. We will give you an indication of the likely timescale once we have reviewed the papers. It is advisable for you to contact the overseas transfer agents as early as possible begin the process, as gathering the required documentation from them can take time. Note that in all cases a face-to-face meeting will be necessary so that a member of our team can witness the signing of the transfer documentation.
How much does it cost?
Our fees are assessed on an individual basis, having regard to the complexity of the matter and the work involved. We will provide you with a fee estimate before commencing work.
Can you provide the Medallion Guarantee if you are not already dealing with the estate?
Yes. Whilst we most commonly provide this service as part of broader estate administration work, we are also able to offer it as a stand-alone service to other individuals, in certain circumstances.
What if there are both UK and US/Canadian assets in the estate?
This is a common situation. Our Estate and Trust Administration team is experienced in advising on and administering estates with international elements. They could assist with the UK estate administration if instructed to do so. Whilst we cannot advise on the legal requirements to administer an estate in the US or Canada, we can help with the steps required to obtain the medallion guarantee needed to transfer US or Canadian securities.
I have been told I need a Medallion Guarantee but I am not sure where to start. What should I do?
Please get in touch with our team. We will be happy to discuss your situation, explain what is involved, and advise on the next steps.
Why do I need to attend a face-to-face meeting, and why do you need to see original documents and why are you asking so many detailed questions?
Because the institution issuing the Medallion Guarantee takes on direct financial liability for any losses arising from a fraudulent or unauthorised transfer, we are required to carry out robust verification before the stamp can be issued. This is a fundamental part of the process and a requirement of our membership of the Medallion Guarantee scheme.
For this reason, we require all signatories to attend a meeting with one of our team members in person. We cannot conduct this verification remotely or accept copies of documents in place of originals.
At the meeting, we will need to:
- verify your identity by inspecting original identity documents (such as a passport or driving licence) in person;
- examine the original documentation relevant to the transfer, such as the grant of probate, death certificate, and transfer forms issued by the transfer agent;
- satisfy ourselves as to the nature of the transaction and your authority to carry it out; and
- ask you a series of detailed questions about the transfer, the securities in question, and your relationship to the estate or the transferring party.
This level of scrutiny is an integral and non-negotiable part of the process. The financial guarantee that the Medallion stamp represents means that we must be fully satisfied as to the legitimacy of every transfer before the stamp is applied. This protects not only us as the guaranteeing institution, but also you as the client, and the integrity of the transfer itself.
If you have any questions about what to bring to the meeting or what to expect, please do not hesitate to contact us in advance and we will be happy to assist.