An irrevocable stock or bond power form is a one-page assignment that transfers ownership of a certificated security without requiring you to sign the back of the certificate itself. You complete the form, sign it in front of a Medallion Signature Guarantor, and mail it with the original certificate to the issuer’s transfer agent, which then re-registers the security in the new owner’s name or converts it to electronic book-entry form. The whole process turns on getting small details exactly right, because transfer agents reject packets over mismatches that are easy to avoid.
Where to Get the Form
Brokerages and transfer agents supply their own versions, but the forms are functionally identical. Your brokerage can hand you one, or you can request a blank copy directly from the transfer agent that handles the issuer’s shareholder records. To find that agent, check the company’s investor relations page or search the SEC’s transfer agent data on sec.gov. Computershare and Equiniti handle most large publicly traded companies, so one of those is usually the answer.
Do not sign the form until you are sitting in front of the person providing your Medallion Signature Guarantee. Signing early is one of the most common mistakes and can void the form.
How to Fill Out the Form
Every field must match the certificate exactly. Small differences (a middle initial on the certificate but not on the form, or “Jr.” versus “Junior”) give transfer agents grounds to reject the submission. Work with the certificate in front of you and transcribe carefully.
- Issuer name: the full legal name of the corporation or entity as printed on the certificate. Do not abbreviate “Incorporated” to “Inc.” unless the certificate does.
- Certificate number: the unique number printed on the physical certificate, which links the power to that specific piece of paper.
- Number of shares or face value: exact share count for stock, or face (par) value for bonds. If you are transferring only part of the shares on a certificate, specify the number being transferred; the transfer agent will issue a new certificate for the remainder.
- Class of security: common stock, preferred stock, or the specific bond series, again exactly as it appears on the certificate.
- CUSIP number: the nine-character alphanumeric code identifying the security and its issuer, printed on the certificate or searchable through your brokerage.1Investor.gov. CUSIP Number
- Registered owner name: your name exactly as it appears on the certificate, including suffixes and middle names.
- Assignee (new owner): the full legal name of the person, trust, charity, or entity receiving the security. For a trust, use the exact trust name from the trust agreement. Include the assignee’s Social Security number or tax identification number so the transfer agent can update IRS reporting records.
- Date: leave blank until you sign. The date must be current on the day of the Medallion Signature Guarantee.
- Signature: also blank until the guarantee appointment. Sign in the guarantor’s presence.
If you are transferring shares from a deceased person’s account, the registered owner name on the form is the decedent’s name as it appears on the certificate. The executor or administrator signs on behalf of the estate and includes supplemental documents described below.
Getting a Medallion Signature Guarantee
A regular notary stamp will not work for securities transfers. Transfer agents require a Medallion Signature Guarantee, a specialized seal that acts as a financial warranty: the guaranteeing institution vouches that your signature is genuine and that you have authority to make the transfer, and it backs that assurance with its own money if something goes wrong. Federal regulations set which institutions qualify as eligible guarantors, including banks, brokers, dealers, credit unions, savings associations, and certain clearing agencies.2eCFR. 17 CFR 240.17Ad-15 – Signature Guarantees
Three industry programs administer the stamps: the Securities Transfer Agents Medallion Program (STAMP), the Stock Exchanges Medallion Program (SEMP), and the New York Stock Exchange Medallion Signature Program (MSP). Transfer agents generally accept any stamp from these programs.
Coverage Limits by Stamp Prefix
Each Medallion stamp carries an alpha prefix that caps the dollar value it can guarantee in a single transaction. If your security is worth more than the institution’s prefix allows, the stamp will not be accepted.
- Z: up to $14,000,000
- Y: up to $5,000,000
- X: up to $2,000,000
- A: up to $1,000,000
- B: up to $750,000
- C: up to $500,000
- D: up to $250,000
- E: up to $100,000
Before scheduling, call the institution and confirm its prefix covers the total market value of what you are transferring. A community bank branch might carry only a D or E prefix, while a large national brokerage likely has an A or higher.
What to Bring
You must appear in person. Bring valid government-issued photo identification, the original certificate, and the completed but unsigned stock power. The institution may also ask for a recent account statement or other proof of ownership. Some institutions provide the service free to existing customers; others charge up to around $100.
Fraudulently executing a stock power is a serious federal offense. Securities fraud under 18 U.S.C. ยง 1348 carries fines and up to 25 years in prison.3Office of the Law Revision Counsel. 18 U.S. Code 1348 – Securities and Commodities Fraud
Submitting the Form to the Transfer Agent
Once signed and guaranteed, send the stock power and the original certificate to the issuer’s transfer agent. Use USPS Registered Mail, which provides insurance coverage up to $50,000 for securities and negotiable instruments.4United States Postal Service. Shipping Insurance and Delivery Services For securities worth more than that, use a specialized courier offering higher coverage.
Include any supplemental documents the transfer agent requires based on the type of transfer:
- Estate transfers: a certified copy of the death certificate, letters testamentary or letters of administration, and, if applicable, the relevant pages of the will or trust showing distribution instructions.
- Trust transfers: the trust certification page or the full trust agreement, depending on the agent’s requirements. Call ahead, because some agents accept a certification and others want the entire document.
- Gift or donation transfers: typically no supplemental documents beyond the stock power itself, though charitable organizations may have their own intake paperwork.
What Happens After Submission
The transfer agent reviews the packet for completeness and accuracy. Expect roughly two to three weeks if everything is clean.5U.S. Securities and Exchange Commission. Transferring Your Brokerage Account: Tips on Avoiding Delays When processing is complete, the agent either issues a new physical certificate in the assignee’s name or, far more commonly today, converts the holding to electronic book-entry form and mails a Statement of Holding as confirmation. The new owner can then keep the shares in book-entry or have them deposited into a brokerage account through the Depository Trust Company.
If the agent finds a problem, it will reject the packet and mail everything back, adding weeks to the timeline. The most frequent rejection reasons are name discrepancies between the certificate and the stock power, a Medallion guarantee with insufficient coverage for the transaction value, and missing death certificates or trust documents for estate-related transfers.
If Your Certificate Is Lost or Destroyed
You cannot execute a stock power without the original certificate it references, so a lost or destroyed certificate must be replaced first. Three steps:
- Contact the transfer agent to report the loss and request a replacement. Find the agent through the company’s investor relations page or the Securities Transfer Association website.
- Complete an affidavit of loss. The transfer agent sends this form, which asks for your name, the company name, the number of shares, and the certificate number if you know it. You swear under oath that the certificate is genuinely lost.
- Purchase a lost instrument bond. This surety bond protects the company and transfer agent if the original surfaces later and someone else tries to use it. The bond amount is typically one and a half to two times current market value, with premiums running about 2% of the bond amount, though some sureties charge a flat fee for low-value certificates.
Once the affidavit and bond are accepted, the transfer agent issues a replacement certificate or sets up book-entry shares, and you can proceed with the stock power as usual.
Restricted Stock Requires an Extra Step
If the certificate carries a restrictive legend saying the shares cannot be resold without SEC registration or an exemption, the standard stock power process alone will not complete the transfer. These are restricted securities, typically received through private placements, employee compensation plans, or insider transactions.
To transfer them, the transfer agent needs the issuer’s consent to remove the legend, usually in the form of an opinion letter from the issuer’s outside counsel confirming that the transfer qualifies for an exemption from SEC registration. The most common exemption is Rule 144, which requires the holder to have held the shares for at least six months, or one year for non-reporting companies, and to meet volume and manner-of-sale conditions.6U.S. Securities and Exchange Commission. Restricted Securities: Removing the Restrictive Legend Only the transfer agent can remove the legend, and it will not do so without the issuer’s legal signoff. Plan for extra time, because coordinating the opinion letter can add weeks.
Tax Consequences of the Transfer
Moving securities through a stock power is not just paperwork. The type of transfer determines whether anyone owes tax and what reporting is required.
Gifts to Individuals
Transferring stock as a gift is a taxable event for gift tax purposes if the value exceeds the annual exclusion. For 2026, the federal annual gift tax exclusion is $19,000 per recipient.7Internal Revenue Service. Gifts and Inheritances You can give shares up to that amount to any number of people in a year without filing a gift tax return. Married couples can split gifts, effectively doubling the exclusion to $38,000 per recipient. If a gift exceeds $19,000 to any one person, you must file IRS Form 709 for the year of the transfer.8Internal Revenue Service. Instructions for Form 709 The excess reduces your lifetime estate and gift tax exemption, which stands at $15,000,000 per person for 2026.9Internal Revenue Service. Estate Tax
The recipient of gifted stock takes your original cost basis (carryover basis), so when they eventually sell, their capital gain is calculated from what you paid, not what the shares were worth on the date of the gift.
Charitable Donations
Donating appreciated stock held more than a year to a qualifying public charity lets you deduct the full fair market value and avoid capital gains tax on the appreciation. The deduction for donated capital gain property is generally limited to 30% of adjusted gross income, with excess amounts carried forward for up to five years.10Internal Revenue Service. Publication 526 – Charitable Contributions
Inherited Securities
When a stock power moves shares from a decedent’s estate to an heir, the heir receives a stepped-up cost basis equal to the fair market value of the shares on the date of death.11Office of the Law Revision Counsel. 26 U.S. Code 1014 – Basis of Property Acquired From a Decedent If the decedent bought shares at $10 decades ago and they were worth $150 on the date of death, the heir’s basis is $150. Selling immediately at that price would produce zero taxable gain. The step-up is one of the most significant benefits in estate planning and is worth factoring into decisions about when to transfer securities.