Finding a Trivial Missing Asset (caution: probably a waste of your time to read)

[Midpack]

I got a 1099 for 2025 for my deceased sister from Morgan Stanley for $15. I gave Morgan Stanley a death cert and the trust & will docs. I have tried to run it down with Morgan Stanley, the paperwork required to release the funds to me by MS legal was about 8 documents, including a court order - that effort would exceed the value of the account. When I told them I was sole beneficiary, they told me a Small Estate Affidavit would do the trick - but that's also more than the value of the account in TX. So I just want to surrender the account.

I told MS estate section I was surrendering the account twice via email in Jan, they did not reply - but I assume I'm done.

Yesterday I get a Morgan Stanley quarterly statement for a net dividend of $3.15 after fees. So I call again to surrender the account, they tell me they are only acting as agent, they don't hold the asset so they can't help me. Of course they won't tell me the amount or what/who holds the asset.

Citi is mentioned on the statement, and sister did work for Citi about 20 years ago. I call Citi and she does not have a 401k, pension or any assets with them. They refer me to Computer Share, they find she did have funds with MetLife and Brighthouse Financial, but both closed in 2019/2020.

Is there any way I can surrender or (legally) disclaim this asset - without spending more than the asset is worth? I now believe it's about $750 (latest statement shows shares/share price). I'm assuming I'll get another 1099 for 2026 next year...the estate will be closed long before then. I've read I need someone to "force escheat the account" - but I don't know who with, and Morgan Stanley won't tell me...

 

[PaunchyPirate]

Can't MS sell it for you to cash? I guess I don't understand what MS would have anything to do with it if it were held at another institution. And I'm confused by having a statement with "shares/share price", but not showing you shares of what it's talking about.

 

[SecondCor521]

Since estates get a $600 annual exemption, and you indicate that you'll have everything closed out this year, I would receive and ignore the 1099s starting next spring.

Several years from now, MS should escheat the asset to your sister's state and you can claim the asset that way.

I think that might be easier than arguing with them now.

...

Sorry you're going through this stuff. I'm having to do the same thing currently and it does seem harder than one wants it to be. All the hoops to jump through.

 

[PaunchyPirate]

Another thought... if MS won't cancel the account, will they transfer the assets to another account that you set up for yourself? Then maybe you'd have more visibility/power to do something with it.

 

[MRG]

I worked for a transfer agency, they did escheatments of unclaimed assets. I never worked on that, so I'm void of information about the triggers.

I'd suggest asking ComputerShare. Best wishes.

 

[Sunset]

Just fill out a Small Estate Affidavit and sign it at your bank who can notarize it. We did it. Cost was $0.00

There is no need to pay a lawyer for it.

 

[IncomeOriented]

It's not clear to me...
1 - Do you now actually own the account, in your name?
2 - Or, are you just the beneficiary on the account and it's still in your sister's name?

If #1 is true, move the account out of MS.
If #2 is true, ignore it and walk away. There is no obligation to claim it.

--some institutions will get easier to deal with and offer you a simplified method for claiming it if you wait long enough. Others never.

Our experience:

--With assets at USAA it took them about 2 years to send a letter that could be signed and sent back for the money (that one was my wife's sister's, only about $50)

--Other assets at a bank, about $500, they never offered an easy way to get her sister's account. it's lost forever. Would have cost about $3k for legal to get it.

--Another asset, part ownership in a producing gas well, lost forever. The cost of claiming it was greater than 20 years income from it. They were VERY difficult.

Key thought for us, don't worry about it and let the institution do the work, if they want to.

It's hard after losing someone you care about, not being able to honor their wishes for their stuff. Kind of a double grief. I'm sorry for your loss.

 

[MarieIG]

Did the funds escheat to the state? Did you check your state for unclaimed funds?

 

[ncbill]

Just fill out a Small Estate Affidavit and sign it at your bank who can notarize it. We did it. Cost was $0.00

There is no need to pay a lawyer for it.

"they told me a Small Estate Affidavit would do the trick-

but that's also more than the value of the account in TX."

here opening a small estate cost $120 when I did so several years ago.

my vote is also to ignore until it goes to state escheat.

 

[Midpack]

Another thought... if MS won't cancel the account, will they transfer the assets to another account that you set up for yourself? Then maybe you'd have more visibility/power to do something with it.

You would think so. Again from the OP, I had to provide a death certificate and the trust/will docs just to get them to talk to me at all about the account - with no details at all. And as also noted I noted in the OP, all the options to grant me ownership/control additionally require 8 documents including a court order or a Small Estate affadavit - either route would cost more than the cash value, not to mention the weeks/months of efforts on my part.

I will probably ignore them and wait/hope they escheat them eventually. Just seems odd to me there is no simple way to make that happen now when I've proven the account holder is deceased and I'm the trustee/executor...

 

[Midpack]

Just fill out a Small Estate Affidavit and sign it at your bank who can notarize it. We did it. Cost was $0.00

There is no need to pay a lawyer for it.

In TX where the estate is the county filing fee alone is $360, and DIY isn't an option - I just looked it up and confirmed again. It has to go in front of a probate judge too.

 

[Koolau]

What a pain! Sorry you're needing to deal with this. Can you simply "ignore" it an hope it eventually goes away or is sent for State "unclaimed" property?

When my mom died, we found out she had about $100 in unclaimed "property" (an insurance screw up) with the State. The "process" to claim it was more complicated than $100 was worth to me. I just ignored it. It's probably still with the State. I hope they enjoy it. All the best...

 

[MichaelB]

I got a 1099 for 2025 for my deceased sister from Morgan Stanley for $15. I gave Morgan Stanley a death cert and the trust & will docs. I have tried to run it down with Morgan Stanley, the paperwork required to release the funds to me by MS legal was about 8 documents, including a court order - that effort would exceed the value of the account. When I told them I was sole beneficiary, they told me a Small Estate Affidavit would do the trick - but that's also more than the value of the account in TX. So I just want to surrender the account.

I told MS estate section I was surrendering the account twice via email in Jan, they did not reply - but I assume I'm done.

Yesterday I get a Morgan Stanley quarterly statement for a net dividend of $3.15 after fees. So I call again to surrender the account, they tell me they are only acting as agent, they don't hold the asset so they can't help me. Of course they won't tell me the amount or what/who holds the asset.

Citi is mentioned on the statement, and sister did work for Citi about 20 years ago. I call Citi and she does not have a 401k, pension or any assets with them. They refer me to Computer Share, they find she did have funds with MetLife and Brighthouse Financial, but both closed in 2019/2020.

Is there any way I can surrender or (legally) disclaim this asset - without spending more than the asset is worth? I now believe it's about $750 (latest statement shows shares/share price). I'm assuming I'll get another 1099 for 2026 next year...the estate will be closed long before then. I've read I need someone to "force escheat the account" - but I don't know who with, and Morgan Stanley won't tell me...

I had a very similar issue with my mum’s estate. Almost everything was in a trust, except one bank account needed for pension deposits. When she passed it had a balance of a couple hundred dollars. They would not release it to me or give me access without a court designation.

What we agreed to do is they cashed it out into her name and mailed the check to her at the address of record, which came to me. I deposited the check into her trust.

 

[harley]

I've got a similar, different, situation. When my aunt died I inherited a couple of tiny lots in Chesapeake VA. I changed the contact information to my name, so I can pay the $6/quarter RE taxes, but in order to change the ownership to my name they require me to physically go to their office with a death certificate. I live a few hours away, buy have never found/made time to finish the process. It's been like that for nearly 20 years, and I'm getting up there myself. I wonder how much confusion there will be if I kick off and leave everything to DD. I haven't checked in a decade or so. Maybe they've entered the late 20th century by now and I can do it online or via snail mail. I'll try that, and if not, I'll need to think about it a bit. The value of the lots has doubled in the past few years, all the way up to $3K each. I considered one of those "we'll buy your property" places, buy I suspect I would need free and clear ownership before I could do that. Annoying.

 

[Midpack]

I had a very similar issue with my mum’s estate. Almost everything was in a trust, except one bank account needed for pension deposits. When she passed it had a balance of a couple hundred dollars. They would not release it to me or give me access without a court designation.

What we agreed to do is they cashed it out into her name and mailed the check to her at the address of record, which came to me. I deposited the check into her trust.

I will try that, though I’d be surprised if they’d cash out the account even in her name without her authorization? I’ll try anyway, TY.

 

[all4j]

To be clear, I’m not a lawyer & in no way would I suggest doing anything illegal. My suggestions might violate some Morgan Stanley account “rules”, but you’re ok with them kicking you out anyway. Never the less, don’t assume I speak with any legal understanding. I’ll also add that I’m surprised between the quarterly statement & the 1099 you don’t have more info.

I might 1st try your broker to see if they’ve any suggestions on requesting a transfer. If they understand you’re acting as a fiduciary they may help with the different names on the accounts, etc . 2nd, I might see if you can go online & establish online access – this is likely against their rules. I assume the will doesn’t specify executor has digital access, although that is becoming more common.

Lastly, I wasn’t clear on how you are getting these documents (ie being forwarded by US mail, change of address, etc). Escheatment might be accelerated (slightly) once the receiving account for dividends disappears or mail is returned as undeliverable.

 

[all4j]

Maybe they've entered the late 20th century by now and I can do it online or via snail mail. I'll try that, and if not, I'll need to think about it a bit.

Not to hijack the thread & your idea about re-visiting their ‘in person requirement’ may be best short term… but, I would contact a lawyer local to the lots in question, preferably a small shop, hungry lawyer…& see how much they’d charge for following scenarios. If you want to keep the property, get a quick claim deed transferring ownership to you (or DD if appropriate?). Otherwise, ask about selling to someone else, likely using similar method. If you go that route, contact owners of neighboring property & offer them a deal. That avoids real estate commission, but also limits upside. Either way, you’d probably have to get a document notarized & lawyer would handle local part; lawyer may charge less than your travel expenses

 

[Midpack]

Vanguard has no interest in getting involved in recovering $750 from the estate of my deceased sister - and I don't blame them.

And Morgan Stanley won't cash it out, since they aren't holding the asset, and won't tell me who is.

I emailed the MS estate department and asked if they could force escheat, because they are now mailing quarterly statements to my deceased sister with some private information, to her address - and I will end mail forwarding as soon as I sell the house.

Seems ironic MS won't just stop, and the only alternative is for me to provide:

• Original Certificate of Death (done)
• Court-Certified Certificate of Appointment or Letters of Administration dated within the past 6 months
• Original Notarized Affidavit of Domicile (attached)
• Account Application and Client Agreement (attached)
• Confidential Client Account Information Form for Executor (attached)
• Copy of Government Issued Photo Identification Card for executor (signed US Driver’s license or signed Passport)
• Letter of Instruction (attached)

I am not hopeful they will do anything that makes common sense - why are they mailing to a (confirmed) deceased client?

So I also sent this today:

The account holder is deceased. Do not send further quarterly statements to [Address] as the property has been sold. This is a privacy and identity theft risk.

Morgan Stanley Attn: Privacy Office / Global Compliance

Re: Account of [sister]. The account holder is deceased. This notice serves as a formal notification that PII (Personally Identifiable Information) is being mailed to a stranger's residence at [address]. I am putting you on notice of a potential GLBA privacy violation. Please suppress all mailings immediately."

 

[AudiDudi]

You might check, but with my mother's estate, the PO would only forward mail for 6 months. That turned into a nightmare trying to didstribute about $75k in stock as the holding company would only send mail to her old address. I finally paid a lawyer $1k to solve it.

 

[SecondCor521]

Sometimes when I'm in this sort of situation, I am tempted to cc: every government agency that even might have oversight. The SEC, the CFPB, the FDIC, my Senator, etc.

Usually sending it to the CEO's office can help too. They have teams to deal with this sort of thing.

 

[GrayHare]

If you control it, what about donating it to a charity of your choice to get it off your books?

 

[Midpack]

If you control it, what about donating it to a charity of your choice to get it off your books?

I’d be happy to but I don’t control it, I don’t even know who’s holding the asset and Morgan Stanley won’t tell me (explained earlier).

 

[Sunset]

In TX where the estate is the county filing fee alone is $360, and DIY isn't an option - I just looked it up and confirmed again. It has to go in front of a probate judge too.

Too bad, in IL the bank notarized and accepted the form immediately. Too bad it's so complex in TX

 

[Elle_N]

Three observations/thoughts:

-- Per Texas statute, it appears to me a Small Estate Affidavit applies only when there is no will. You say the decedent left a will.

-- I wonder if the account holding the Citi stock has a co-owner. If so, I suspect this is why Morgan Stanley is not sharing further information with you.

-- I think abandoning property in the course of settling an estate may be more common than many might think? Several years ago, as executrix (Personal Rep yada) of an estate, and on advice of paid counsel, I was stuck abandoning about $20,000 of the decedent's stock, because the stock had a co-owner. I could not prove the co-owner's death (1) without hiring a private investigator and (2) without waking up dogs that might best be left sleeping. Like you, the cost of recovery would easily exceed the value of the stock. It bothered me for some years. But it was the rational choice. The unclaimed stock now appears on the missing money.com web site, under the two co-owners' names.

 

[GrayHare]

Can someone who neither owns nor controls an asset have any associated liability? I don't know the answer. Isn't it an example of a "Not my monkey, not my circus" thing, as we say around this board?