Best way to mail a printed Stock Certificate

[Amethyst]

I inherited an old printed stock certificate, for shares now worth about $9,000.00, and need to send it to the holding company so they can re-register it to me.

My first thought was to use registered, insured U.S. mail, return receipt requested.

However, the holding company representative suggested Fedex is more reliable.

I don't see anything on Fedex's web site about insurance. I'm leery of sending the certificate uninsured. If it had to be replaced, it would cost me around 5% of the face value, plus a $75.00 fee.

Anyway - if you had to mail a stock certificate, how would you do it?

 

[disneysteve]

I actually just had to do this on Wednesday. The holding company recommended insuring it for 4% of market value. However, the market value was about 200K which would mean insuring for $8,000. USPS insurance maxes out at $5,000 and that would have cost $60 or so.

I ended up being cheap and just sending it certified mail, return receipt. It might not have been my brightest decision considering the amount involved but I've been tracking it and as of today, it has reached it's destination city so hopefully it gets delivered on Monday.

 

[MichaelB]

FedEx has insurance, I’ve used it. Can a stock certificate be insured? I suspect you cannot insure the value of the stock, but you could insure the 5% replacement value.

In that case I would use FedEx overnight, because you can track it, and would know quickly if it were to go missing. USPS tracking tools are not as good and definitely not updated in real time.

 

[Amethyst]

That's what I was thinking, too. I'll call Fedex on Monday and ask about insurance.

Hopefully, it is not seen as political to point out that mail service has deteriorated lately. Until recently, first class mail took 2 days to get from Maryland to southern Florida. However, I've waited 8 business days for some paperwork to reach me from MD, and it's not here yet.

FedEx has insurance, I’ve used it. Can a stock certificate be insured? I suspect you cannot insure the value of the stock, but you could insure the 5% replacement value.

 

[njhowie]

I actually just had to do this on Wednesday. The holding company recommended insuring it for 4% of market value. However, the market value was about 200K which would mean insuring for $8,000. USPS insurance maxes out at $5,000 and that would have cost $60 or so.

I ended up being cheap and just sending it certified mail, return receipt. It might not have been my brightest decision considering the amount involved but I've been tracking it and as of today, it has reached it's destination city so hopefully it gets delivered on Monday.

When I left last employer and received pension payout, administrator sent the check to my house as basic first class mail...well into 6 figures.

If you use USPS registered mail, you can insure up to $25,000.

https://about.usps.com/postal-bulletin/2008/html/pb22247/html/not123_063.html

Fees for articles valued over $25,000 are for handling only. Maximum amount of insurance coverage available is $25,000

 

[MRG]

I would go with the holding companies recommendation. They answer the calls and deal with the issues.

 

[ERD50]

IMO and IME, the "best way" to mail them is to *not* mail them.

When I dealt with settling FIL's estate, and he had paper stock certificates. We went to a B&M Fidelity with the stock certificates and the death certificate (probably copies of the trust), and they were able to convert the paper to just shares in the account we set up.

This is from my notes:

Fidelity called back - Paper stock certificates can be accepted at their office. The street registered ones will need to be re-titled to the EIN and new Trustee (wife of deceased). They can provide Medallion signatures for this. ...

I printed the transfer forms for PEP and PG (street reg at computershare), we can take to FID for Medallion sigs and notary for IL residence.

Got forms for GAS (street reg at shareowneronline), pretty much the same as above, will take to Fidelity for Medallion Signature.

-ERD50

 

[Major Tom]

mail service has deteriorated lately. Until recently, first class mail took 2 days to get from Maryland to southern Florida. However, I've waited 8 business days for some paperwork to reach me from MD, and it's not here yet.

I have noticed this too. It's disappointing. The main carriers all complement each other in the services they offer. The USPS helps fill in the gaps in services and costs that the others don't fill. The ability to send a letter/card/note or similar document anywhere in the country for the price of a first class stamp, is a fantastic service. The confidence that you could expect delivery within a few days formed an essential part of that service, IMO.

 

[disneysteve]

When I dealt with settling FIL's estate, and he had paper stock certificates. We went to a B&M Fidelity with the stock certificates and the death certificate (probably copies of the trust), and they were able to convert the paper to just shares in the account we set up.

Just be aware that this only works if the number of shares on the certificate matches the number actually in the account. If there were splits or dividend reinvestment along the way, they may not match.

That's the issue I ran into. My cousin had paper certificates for 250 shares but actually owned over 3,200 shares at the time of his death. I had to go through the holding company to get the proper number of shares transferred.

 

[Amethyst]

How do you do that when the holding company is just that - not a bank or investment firm?

IMO and IME, the "best way" to mail them is to *not* mail them.

When I dealt with settling FIL's estate, and he had paper stock certificates. We went to a B&M Fidelity with the stock certificates and the death certificate (probably copies of the trust), and they were able to convert the paper to just shares in the account we set up.

This is from my notes:




-ERD50

 

[disneysteve]

How do you do that when the holding company is just that - not a bank or investment firm?

It works if you want to move the stock into your brokerage account. Once I have the names changed on mine, I will move it to our Vanguard account. If you just want to keep it as is, you need to go through the holding company.

 

[ERD50]

How do you do that when the holding company is just that - not a bank or investment firm?

Per my notes, I started here:

https://www-us.computershare.com/Investor/#Home

https://www.shareowneronline.com/

It was far simpler than worrying about mailing, insuring, etc. Eight years ago, so details beyond my notes are a little fuzzy.

-ERD50

 

[ERD50]

Just be aware that this only works if the number of shares on the certificate matches the number actually in the account. If there were splits or dividend reinvestment along the way, they may not match.

That's the issue I ran into. My cousin had paper certificates for 250 shares but actually owned over 3,200 shares at the time of his death. I had to go through the holding company to get the proper number of shares transferred.

I can't say for certain, but the paper stocks I processed at the Fidelity office (in 2014) were:


PEP dated 01/08/2002
EXC dated 05/25/2004
PRU dated 11/12/2002
MAT dated 04/15/1993
LNT dated 04/14/1993

I'd be surprised if none of those went through splits between those dates and Sept 2014, but it's possible. I know they didn't reinvest dividends, that was part of their spending money.

edit/add: Found this site, only MAT (Mattel) had a stock split in that time (Several).

https://www.splithistory.com/mat/

-ERD50

 

[disneysteve]

I can't say for certain, but the paper stocks I processed at the Fidelity office (in 2014) were:


PEP dated 01/08/2002
EXC dated 05/25/2004
PRU dated 11/12/2002
MAT dated 04/15/1993
LNT dated 04/14/1993

I'd be surprised if none of those went through splits between those dates and Sept 2014, but it's possible. I know they didn't reinvest dividends, that was part of their spending money.

edit/add: Found this site, only MAT (Mattel) had a stock split in that time (Several).

https://www.splithistory.com/mat/

-ERD50

When I called VG about transferring the stock directly to them, once I said that the number of shares on the certificates didn't match the actual number in the account, they said I'd have to get the account updated before I could move them into my VG account.

 

[Amethyst]

From Fedex.com:

Shipping insurance is not required, but it is recommended if you are shipping an item of high value or an item whose market value is difficult to ascertain. FedEx does not supply shipping insurance of any kind, but you can reach out to an insurer of your choice. For additional questions, please contact Customer Service at 1.800.435.7949.

Looks like my choices are: Send insured via USPS, or send uninsured via Fedex?

 

[Jerry1]

Given that it is possible for the certificate to be recreated/reissued, I would just send it FedEx or UPS. Ship it next day air and you’ll have good tracking information. I’m pretty sure UPS has insurance if you really want it insured. I’m not sure what the cost to reissue versus the cost of insurance is but I wouldn’t pay say $100 for insurance if it only cost $75 to reissue the certificate. It will get there. Just take good pictures of the certificate (front and back) before you send it.