Q: I recently purchased a storage unit that contained stock certificates. I have discovered the person they were issued to

A: That is an interesting question. It is unlikely having physical possession of the certificates entitles you anything, but it may be looking into since you did purchase the contents. Share certificates are mostly ceremonial today. The corporation's records are the deciding factor.

A: Under California law, handling inherited stock certificates from a deceased individual requires a specific process. First, you should verify the authenticity of the stock certificates. This includes checking the company's existence and the validity of the certificates themselves.

Next, you need to determine the legal heir or beneficiaries of these stocks. Since the original owner is deceased, the stocks may now belong to their heirs or beneficiaries as per their will or, in the absence of a will, under California's intestate succession laws.

Once the rightful heir is identified, they will need to provide documentation to prove their claim. This typically includes a death certificate of the deceased, legal proof of their relationship to the deceased (such as a birth certificate or marriage certificate), and possibly a letter of testamentary if there's a will involved.

The heir must then contact the transfer agent for the stock. The transfer agent is responsible for transferring ownership of the stocks from the deceased to the heir. They will guide you through the process, which may involve filling out specific forms and providing the necessary documentation.

Finally, once the transfer of ownership is complete, the heir can decide to either keep or sell the stocks. If they choose to sell, they should consult with a financial advisor or a brokerage to understand the best way to proceed. Remember, there may be tax implications for inheriting and selling these stocks, so it's advisable to also consult a tax professional.