What Happens to Your Stocks When You Pass Away in Singapore

Investing in shares, whether through the Central Depository (CDP), brokerage accounts, or online trading platforms, is a common way Singaporeans grow their wealth. But few investors think about what happens to these investments when they pass away. Do your stocks automatically go to your loved ones? Or will they get tied up in a legal process?

This article explains how stock assets are treated under Singapore law on death, how differently sized stock portfolios are handled, and the practical steps you can take to make the process smoother for your beneficiaries in the following sections:

• Do stocks form part of my estate? How are stocks transferred upon death?
• How are my stocks identified upon my death?
• How will my stocks be distributed upon my death?
• What happens to my stocks if they are jointly held with another individual?
• What happens to my stocks that were purchased as an employee (employee stock options)?
• What are some practical steps to take to manage my stocks before my passing?

Do Stocks Form Part of My Estate? How are Stocks Transferred Upon Death?

When a person passes away, everything they own – including bank accounts, property, insurance payouts, and stocks – forms their estate. Hence, on your demise, the stocks that you had purchased and owned will be treated in a similar manner to the other assets that make up your estate.

Your stocks, whether local or overseas, are not automatically transferred to anyone upon your death. A personal representative – usually the executor if you left a valid will) or administrator (if you died without a will) – of your estate first needs to obtain the legal authority to deal with them as part of your estate, before they can be transferred or distributed to your next-of-kin and loved ones.

In Singapore, that authority usually takes one of two forms:

1. Grant of Probate – if you left a valid will naming an executor; or
2. Grant of Letters of Administration – if you passed away intestate (i.e., without a will).

These are issued by the Family Justice Courts and empower your personal representative to collect, manage, and distribute all assets in your estate, including your shares.

For a more detailed discussion, you can refer to our other articles on How to Apply for a Grant of Probate in Singapore and Applying for Letters of Administration in Singapore.

How are My Stocks Identified Upon My Death?

This will depend on whether your stocks are held locally or overseas.

Locally held shares (CDP or Singapore brokerages)

If you hold shares listed on the Singapore Exchange (SGX), these are usually deposited with the Central Depository (CDP) under your CDP Securities Account, or indirectly through a brokerage.

Upon your death, the executor or administrator must:

1. Notify CDP or the relevant brokerage of your (i.e. the brokerage account holder) passing as soon as possible, usually by submitting a copy of the death certificate. Do note that they may require various other documents. The CDP requires the next-of-kin to obtain a copy of the deceased’s account statement before they can commence the process of managing their loved one’s CDP account. This can be done by completing a ‘Request for Deceased CDP’s statements’ Form and submitting it, along with the required supporting documents as stated in the Form, to SGX.
2. Apply for the Grant of Probate or Letters of Administration.
3. Once the Grant is issued, submit it to CDP or the brokerage, which will then transfer the shares to the executor’s account for eventual distribution.

If you hold shares through multiple brokerages, each platform must be notified separately.

Overseas shares

If you own foreign stocks, say, Apple or Tesla shares in a US brokerage account, the process is a little more complex. Your executor would first need to trace and identify where the stocks are located (i.e. in what accounts, how many accounts etc.).

Your executor may then need to obtain a fresh Grant of Probate to give them the legal authority to administer, or distribute, your assets located in that particular jurisdiction to your specified beneficiaries. Generally, each jurisdiction has its own rules on estate administration and inheritance taxes, so legal advice would be essential in this case.

Do also note that these rules might differ depending on the type of brokerage accounts you hold (e.g. SG-based or US-based) and the applicable policies. For example, a non-US domiciled and non-US (i.e. foreign) resident who dies owning more than $60,000 in US-situs assets (e.g., shares held in a US-incorporated company) may trigger an estate tax filing requirement. To illustrate further:

A non-resident owns $1,000,000 in US-based stocks and has no debts or other deductions. Of this, the exemption amount is $60,000, so the amount of taxable estate is $940,000.

Using the prevailing US estate tax rates (ranging up to 40%), the estate tax liability would be calculated based on the progressive rates. So, if the effective tax rate is around 34% for this taxable estate size, then the estate tax due would be $940,000 x 34% = $319,600.

How Will My Stocks be Distributed Upon My Death?

The distribution of your stocks to your family members or loved ones would depend on whether or not you have left behind a will.

If you left a will

Your stocks will be distributed according to your will’s instructions. For instance, you might have written in your will:

“I give all my shares in DBS Group Holdings to my daughter, Sarah.”

In that case, your executor will transfer the stocks directly to Sarah’s CDP or brokerage account once the Grant of Probate is obtained.

If you did not leave a will

If you die without a will, the Intestate Succession Act determines how your estate is divided. Generally, your surviving spouse and children are first in line, followed by parents, siblings, and more distant relatives. A personal representative of your estate will need to apply for the Letters of Administration before they can sell or transfer the stocks accordingly.

Simplified process for small CDP estates

In November 2024, Singapore introduced a simplified process specifically for CDP assets worth S$5,000 or less when the deceased did not leave a will.

Previously, even small estates required a Grant of Letters of Administration, and the cost of obtaining such legal documentation could even exceed the value of assets held with CDP.

Under the new arrangement:

• Next-of-kin may claim CDP shares directly from CDP without obtaining legal documentation for estates of S$5,000 or less;
• This only applies to intestate estates (where there is no will); and
• Applicants must typically secure consent from all entitled beneficiaries to avoid disputes before proceeding.

This change aims to reduce administrative burden and costs for small estates, making it quicker and more economical for families to access these assets.

What Happens to My Stocks If They are Jointly Held with Another Individual?

You may have opened a joint brokerage account with a spouse, sibling or even your business partner so that you could invest together and pool your resources. If you hold stocks jointly with another person (for example, a joint brokerage account), the treatment depends on the account terms.

In most cases, joint accounts operate with the right of survivorship, meaning the surviving account holder automatically inherits the shares when one passes away. For example, local platform, Endowus, offers joint robo-advisory/cash management accounts. Its terms stipulate that a joint Endowus account is a joint-alternate account. This means that both account holders have equal access to and control of the account. In the event that one account holder passes away, the other account holder maintains full access to and control of the joint account.

However, due to different clauses with regards to these accounts across different platforms, in some cases, these assets may form part of the estate to be distributed according to your will or the Intestate Succession Act. Nevertheless, be sure to always check the account terms and verify with the platform if you require further guidance.

What Happens to My Stocks That were Purchased as an Employee (Employee Stock Options)?

It is important to review the terms of your company’s plan to understand what might happen to your employee stock options if you were to pass away while in their employment.

For example, some companies might allow you to name a beneficiary of your employee stock options. In lieu of a beneficiary, your personal representative in charge of handling your estate affairs will likely be able to assist in the exercise of the shares on your demise.

What are Some Practical Steps to Take to Manage My Stocks Before My Passing?

Managing stocks after death can be a tedious process, but here are some practical steps that you can take to make it relatively seamless for your family members:

1. Make a will. Clearly specify how you want your shares distributed to avoid potential disputes amongst your intended beneficiaries over who is entitled to the shares.
2. Keep records updated. Maintain an up-to-date list of your brokerage accounts, shareholdings, and account numbers.
3. Nominate beneficiaries where possible. Some financial institutions allow beneficiary designations, so be sure to review the terms and conditions if you are able to do so.
4. Consolidate your investments. Fewer platforms mean less administrative hassle for your family.
5. Engage a lawyer or estate planner to ensure your estate plan covers both local and overseas investments.

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Your stocks, just as the rest of the assets that make up your estate, require careful legal handling before they can be distributed to your beneficiaries. Whether you leave behind a will or not, understanding the legal processes by which stocks are distributed upon your passing can save your loved ones time, cost, and uncertainty.

Proper estate planning ensures that your hard-earned investments continue to benefit the people you care about, just as you intended. If you require further guidance on managing assets such as stocks as part of your estate planning, we strongly encourage you to consult a wills lawyer.