What to do when a Client Passes Away
The death of a client will have a substantial impact on surviving family members, friends, and you, as the advisor. While the death of a client is emotional and challenging, there are important procedures to follow that will help ensure proper handling of the account.
Immediately notify LPL by calling Service at (877) 457-5669 to notate the account and restrict all trading activity in the decedent’s account.
Do not accept any instructions from anyone who is not a court appointed executor after a client is deceased.
All Powers of Attorney applied to an account are voided on the death of a client. Any Trading Authorization granted by the client also ends when the client passes away.
Remember beneficiaries are just that, they do not have authority over the existing account.
No account activity (buying, selling, distributions, or transfer of the account to another firm) should occur until legal authority is established, a new account is opened, and the assets are distributed required based on account type.
Obtain a copy of the decedent’s death certificate and send a copy to LPL with the account number referenced on the death certificate. You can email the document to firstname.lastname@example.org or fax to (858) 202-8325.
Request cancellation of all periodic distributions, contributions and systematic trades. You can cancel distributions and contributions in the Add/Change Recurring module in the Move Money tool.
If applicable, request to end check writing by calling the Service Center at (877) 457-5669.
For advisory accounts, request deactivation of the advisory agreement.
If the decedent is a part of a combined statement, update the combined statement group.
Update the Account. The documents LPL needs to update a deceased client’s account depends on the account type. Refer to the Death Guide on the Resource Center for detailed instructions on what tasks to complete and any additional required documents to submit after a client passes away.
Create LPL accounts for the beneficiaries to receive their share of assets.
If you have any questions, please contact the Death and Divorce team at (866) 698-5938.