Releasing U.S. Shares from a UK Estate

How Form 706-NA and Medallion Signature Guarantees Work Together

When a UK estate includes U.S.-listed shares or funds, the process goes beyond obtaining a UK Grant of Probate. U.S. securities are classified as U.S.-situs assets and are subject to American tax and transfer regulations.

To release or transfer these assets, two key requirements often arise: Form 706-NA, the U.S. Estate Tax Return for non-resident estates, and the Medallion Signature Guarantee, a specialist authentication required by U.S. financial institutions.

Understanding how these requirements fit together helps executors, solicitors, and accountants avoid months of delay when administering international estates.

Understanding U.S.-Situs Assets in UK Estates

A U.S.-situs asset is any property considered located within the United States for estate-tax purposes. This includes:

Shares in U.S. corporations (e.g., Apple, Microsoft, ExxonMobil)
U.S.-domiciled mutual funds, ETFs, and ADRs
Cash held in U.S. brokerage accounts
Certain real estate or partnership interests with U.S. operations

Even if the deceased was a UK resident and citizen, these assets fall under the jurisdiction of the Internal Revenue Service (IRS). The executor may need to file Form 706-NA before the shares can be transferred or sold.

What Is Form 706-NA?

Form 706-NA is the United States Estate (and Generation-Skipping Transfer) Tax Return for Non-Resident Not a Citizen of the United States.

It must be filed with the IRS when the total value of U.S.-situs assets owned by the deceased exceeds USD 60,000 at the date of death.

The filing calculates any U.S. estate tax liability and obtains an IRS Transfer Certificate (Form 5173), which authorises the release of the U.S. assets.

Until this certificate is issued, many U.S. transfer agents or brokers freeze the shares. Form 706-NA is a key step in releasing the holdings for transfer or sale.

Executors may still need to provide supporting documentation even if the total value is below USD 60,000, such as a sworn affidavit confirming that threshold.

What Is a Medallion Signature Guarantee?

A Medallion Signature Guarantee (MSG) is a specialised authentication stamp used by U.S. financial institutions to confirm that the signature on a securities transfer form is genuine and authorised.

It is not the same as a notarial certification or an apostille. Only a U.S.-approved financial institution participating in an official Medallion program (such as STAMP, SEMP, or MSP) can issue a Medallion stamp.

Without this authentication, a U.S. transfer agent will usually reject any share transfer request, even if probate and tax requirements have been met.

Most UK executors and solicitors cannot access a U.S. financial institution directly, so obtaining a Medallion Signature Guarantee can be challenging. Share Data provides an established route for obtaining this guarantee within the UK, ensuring compliance with U.S. transfer regulations.

Why Executors Often Need Both

For most estates involving U.S. securities:

Form 706-NA must be submitted to the IRS to obtain Form 5173 (the Transfer Certificate).
A Medallion Signature Guarantee is required to authorise the physical transfer of the shares once tax clearance is complete.

If either step is missing, U.S. brokers are likely to withhold the assets.
This means the executor cannot sell, transfer, or re-register the shares until both the IRS and the transfer agent’s requirements are satisfied.

Common Scenarios

1. Estates above USD 60,000
A full Form 706-NA filing and a Medallion Signature Guarantee are both required.

2. Estates below USD 60,000
The executor can provide an affidavit confirming the asset value, but a Medallion Signature Guarantee may still be necessary to complete the transfer.

3. Joint or nominee holdings
When shares are jointly held or registered in nominee form, U.S. transfer agents often request both IRS clearance and a Medallion stamp to ensure proper authority.

Share Data specialises in coordinating all documentation required to release U.S. securities from UK estates. Our services include:

Preparing and submitting Form 706-NA to the IRS
Liaising with the IRS to obtain Form 5173 (Transfer Certificate)
Providing Medallion Signature Guarantees locally in the UK
Coordinating with U.S. brokers, registrars, and transfer agents
Preparing executor affidavits and supporting documentation
Arranging translations, apostilles, and notarisation where required

With experience in both UK and U.S. jurisdictions, Share Data ensures compliance with all relevant regulatory procedures and reduces the administrative burden on executors and solicitors.

Frequently Asked Questions

What happens if the estate does not file Form 706-NA?
The IRS may refuse to issue Form 5173, which could prevent the release or transfer of U.S. securities. Brokers typically hold the assets until clearance is received.

Can a UK notary or solicitor provide a Medallion Signature Guarantee?
No. Only authorised U.S. financial institutions can issue Medallion stamps. Share Data arranges access to this service in the UK through our U.S. partners.

How long does the IRS process Form 706-NA?
Processing times vary, but most estates receive Form 5173 within 2 years of submission, depending on the IRS workload and the completeness of the documents.

If the estate is below USD 60,000, is Form 706-NA still required?
Usually not, but executors must often provide an affidavit and supporting broker statements confirming the total value of U.S.-situs assets.

Conclusion

Releasing U.S.-listed shares from a UK estate often requires U.S. tax clearance (via Form 706-NA and Form 5173) and a Medallion Signature Guarantee to execute the transfer.

With both services available through a single, coordinated process, Share Data helps executors, solicitors, and accountants finalize cross-border estates efficiently and with full regulatory compliance.