Legal Question in Wills and Trusts in Florida

dividends and interest

Stock certificates are held in joint name. Dividends are declared on record date. One owner of the stock certificate dies between record date and payable date. Does the stock dividend belong to the estate or to the other owner on the stock certificate? In this case, the estate and other owner are not the same people. If the stock certificates are held in single name does the dividend belong to the estate?


Asked on 6/09/04, 8:54 pm

1 Answer from Attorneys
Walter LeVine Walter D. LeVine, Esq.

Re: dividends and interest

Dividends follow the ownership on date they are paid. Since the shares were owned by the surviving joint owner on the payment date, they belong to the survivor. By way of example, assume you sold the stock after the dividend was declared but before payment. Part of the purchase price to the new owner would be the declared dividend, who will receive it when paid. Since the shares were owned by the decedent at date of death, the value is part of a potential taxable estate (including the declared dividend), even though the shares pass outside the Will.

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Answered on 6/10/04, 10:21 am


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