Can I Inherit My Brother-in-Law's US Shares Without Beneficiary Process?

Ans: I’m very sorry to hear about your brother-in-law’s passing. In such times, handling legal and financial formalities can feel overwhelming. But don’t worry—we’ll walk through this step by step in a clear and practical way.

Let’s now see how to help your sister claim those US shares in a structured and smooth process.

Step 1: Understand the Account Type
First, confirm if the shares were held in a brokerage account (like E*TRADE, Schwab, Fidelity, etc.)

If it's an individual account, and there is no named beneficiary, then it becomes part of the estate

If it’s a joint account or transfer-on-death (TOD) account, transfer may be easier. But as you said, no beneficiary process, so likely an individual account

Step 2: Contact the Brokerage Firm
Your sister (as legal heir) must inform the broker of the death, in writing

Include death certificate copy and ask them for their formal estate transmission process

Every broker has a survivor claim or estate settlement team—you must reach them

Even if they don't have a "beneficiary form", they will have a probate transfer process

Step 3: Probate and Court Documents
Since there is no beneficiary, the assets will be distributed based on:

Will, if your brother-in-law made one, or

US State intestacy laws, if there was no Will

So:

Your sister needs to check which US state the brokerage account was in (where it was opened or where he worked/lived)

She needs to apply for probate in that US state or seek a court order to declare her as legal representative of the estate

This will likely need:

Death certificate (with apostille, if required)

Proof of relation (marriage certificate, if she is wife, or legal heirship certificate)

No objection from other legal heirs (if needed)

A US-based probate attorney can help if it's complex

Step 4: Prepare Essential Documents
Usually, the brokerage will ask for:

Original or notarized copy of the Death Certificate

Court-certified documents showing your sister as the executor or legal heir

Letter of Testamentary or Letter of Administration from US court

ID proof and address proof of the claimant

W-8BEN form, if she is not a US citizen/resident (this is for non-resident tax purposes)

Step 5: Tax Withholding and Reporting
US stocks may have capital gains or dividends subject to US tax rules

If the shares are transferred or sold later, the IRS may withhold tax for non-resident heirs

Your sister should consult a tax advisor in India for Indian tax obligations on these shares (especially if sold and proceeds brought to India)

Step 6: Receiving the Shares or Funds
Once the brokerage accepts all documents, she has two options:

Transfer shares to her own brokerage account (in USA or India, depending on broker’s policy)

Or, sell the shares and get proceeds wired to her bank account in India (this may take 4–6 weeks)

She must keep:

Copies of all forms submitted

Tax statements and brokerage letters

Confirmation of transfer/sale, for her own IT return in India

Final Insights
The process may take 2 to 4 months, depending on state laws and document completeness

Please avoid any panic sales or agents who promise shortcuts

Stick to the official channel of the brokerage firm and US court for a smooth, legal transmission

A probate attorney in the US may be required if the estate is large or complex

A Certified Financial Planner in India can help with reinvesting those proceeds wisely after they are received

Helping your sister through this legal maze is a powerful support. She needs clarity and calm guidance, and you’re doing the right thing by seeking this advice.

If you need help connecting with US-based estate attorneys or structuring her future investment in India post-transfer, I’ll be happy to help.

Best Regards,

K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in
https://www.youtube.com/@HolisticInvestment