Mr. Lee’s father had spent many years investing in the stock market. After retiring, he passed away due to illness, leaving behind several stocks with considerable market value. After his passing, how can the family confirm how many stocks he owned, and how should they handle the stock inheritance process?

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房型 Apply for the decedent’s financial estate information File estate tax Stock inheritance transfer process: Is there a deadline? How should lost stock certificates be handled?

1. Apply for the decedent’s financial estate information

• Under current regulations, deposits, funds, listed and OTC stocks, short-term bills, life insurance, futures, safe deposit boxes, financial institution loans, and credit card debts are all included in the financial estate information list.
• Family members may apply at a local National Taxation Bureau or tax authority to obtain the list and confirm which stocks the decedent had invested in.

• Required documents：

1. Applicant’s national ID card.
2. The decedent’s household deregistration transcript issued within the past three months, or a death certificate.
3. Documents proving the relationship with the decedent, such as an inheritance system chart, court document, or original will.
4. If handled by an authorized representative:：

►If the principal is in Taiwan, a power of attorney must be attached, together with a copy of the principal’s national ID card.

►If the principal is overseas, the original power of attorney must be attached, together with a copy of the principal’s national ID card, and authenticated by a Taipei Economic and Cultural Office (TECO) abroad.

Taiwan   

overseas  

2. File estate tax

• Before handling the transfer of inherited stocks, the number of shares and cash dividends held by the decedent as of the date of death should be reported to the National Taxation Bureau or tax authority. The heirs must obtain an estate tax exemption certificate or a tax payment certificate, with estate tax paid in full if applicable. The filing must be completed within six months.
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Additional note: The estate value of listed or OTC company stocks is calculated based on the closing price on the date of death. For emerging stocks, it is calculated based on the weighted average transaction price on that date.
 

3. Stock inheritance transfer process: Is there a deadline?

• There is no deadline for stock inheritance transfer.
• When a shareholder passes away, the legal heirs may apply to the issuing company to transfer and register the decedent’s stocks under the heirs’ names. This is called an inheritance transfer.
• All heirs should go to the bank’s stock transfer agency department to handle the procedure. If any heir cannot attend in person, an authorization form should be completed for representation.

►Shares may be divided among heirs. For example, if the decedent owned 1,200 shares of TSMC and the shares are divided among three children, with each child receiving 400  shares, this agreement may be written into an estate partition agreement. The children may then use the estate partition agreement to handle the inheritance transfer.

►Some family members mistakenly believe that they can directly sell the decedent’s stocks without first handling inheritance of the securities depository account. In practice, this is not allowed.

Note: 1. The securities depository account used by the decedent for stock trading must first be inherited. 2. Only then can the bank settlement account be inherited.

(Securities depository account：a securities account at a securities firm, used to hold stocks.)
(Settlement account：a bank account, used to hold funds.)

（If you are reading this article on a mobile phone, it is recommended to hold your phone horizontally to view the table.）

Required Documents	Stock Inheritance
Documents	The stock heir’s registered seal, original national ID card, and one photocopy of both sides of the national ID card. Existing account holders are exempt. The decedent’s stocks. Inheritance system chart. The decedent’s household deregistration transcript issued within the past three months, or a death certificate. The stock heir’s current household registration transcript issued within the past three months, with remarks not omitted. Either an individual transcript or a full household transcript is acceptable. A full household handwritten household registration transcript from earlier records, issued within the past three months, sufficient to confirm all legal heirs. The household deregistration transcript of any deceased heir, issued within the past three months. Seal registration certificate issued within the past three months. For minors, the original national ID card of the legal representative or the legal representative’s seal registration certificate issued within the past three months must be attached. Court approval notice for inheritance waiver, required only if there has been an inheritance waiver. Estate partition agreement. Estate tax payment certificate or estate tax exemption certificate. One seal specimen card of the stock heir. Existing account holders are exempt. Application for stock transfer by inheritance. ►Example
Notes	Shareholders handling an inheritance transfer should first inquire at the counter. If the matter is handled by an authorized representative, the representative must be a Republic of China national. The original national ID card of the representative and the power of attorney must be attached. Foreign heirs without household registration in the Republic of China must provide documents sufficient to prove their lawful inheritance rights. If the heir is a person from the Mainland Area, documents proving the inheritance relationship verified by the Straits Exchange Foundation must be submitted, together with a notarized certificate or supporting document of the inheritance relationship issued by a local notary authority in Mainland China. If the heir cannot come to Taiwan in person, a legally recognized power of attorney must be issued to authorize a third party in Taiwan to handle the matter on their behalf. Appointment of a property guardian for distribution of estate property: If there is a minor heir, according to Article 1094 of the Civil Code, a senior relative must be separately appointed as the property guardian. The guardian’s seal, original national ID card, or seal registration certificate, and household registration transcript must be attached.

4. How should lost stock certificates be handled?

• If physical stock certificates have been lost, the lost stock certificates must first be reported and reissued before the heirs can begin the stock inheritance process.
• Process for applying to reissue lost stock certificates
  • Police report or record filing: First, inquire with the stock transfer agent for the numbers of the lost stock certificates. Then go to the police station, complete a police report certificate, and file a police report or record. The report should include the company name, holder’s name, certificate number, and number of shares. If the report is not filed by the shareholder, the stockholder must be specified.
  • Loss registration: Bring the original police report certificate, original national ID card, and original registered seal to the stock affairs department of the issuing company or its stock transfer agent. If another person is authorized to handle the matter, a natural person shareholder must issue a power of attorney, and a corporate shareholder must issue an application letter. The power of attorney or application letter must be affixed with the original registered seal.
  • Petition for public summons: After receiving the loss notice issued by the stock affairs department, the shareholder should bring the loss notice to the competent court at the issuing company’s location and petition for public summons within five days from the day after the issuance date.
  • Court website announcement or newspaper publication: After receiving the court ruling for public summons, review the ruling for accuracy. Then, according to the contents of the ruling, apply to have the announcement published on the court website or in a newspaper.
  • Petition for a judgment of exclusion: Within three months from the day after the public summons period expires, attach the public summons ruling, the court website announcement or the published newspaper, and petition the court for a judgment of exclusion.
  • Court hearing: After receiving the court hearing notice, appear in court on the specified date and time. The shareholder may appear in person or authorize another person to appear on their behalf.
  • Apply for reissuance of stock certificates: Bring a copy of the petition, the announcement page, the original judgment of exclusion, national ID card, and original registered seal to the stock affairs department of the issuing company or its stock transfer agent to reissue the stock certificates.

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