Inheriting securities

Because the records are decisive for book-entry securities. Succession means a change of owner arising from a legal event other than a contract — in the case of inheritance, the deceased’s death, with succession evidenced by a final inheritance decision — and the legal successor must apply to the depository to register it. Until then, the securities remain in the deceased’s account and the heir cannot dispose of them, even though the heir acquired them upon the deceased’s death.

As an individual, generally not. Since 1. 2. 2022, holders of CDCP accounts for individuals and for legal entities other than members or participants have been required to submit instructions to register a transfer, succession, movement between accounts or suspension of the right to dispose of securities exclusively through an authorised participant or depository member. The only exception is for state authorities acting on behalf of the Slovak Republic. The procedure therefore goes through a designated member, which we arrange.

Maintenance of a deceased holder's account has been free since 1. 1. 2012. If an invoice has nevertheless arrived, the depository does not know about the death. A copy of the death certificate — not a death notice — is sufficient and does not need official certification. The depository will then stop charging for account maintenance and stop recovering unpaid charges. If an external company has already taken over the matter, proof should still be delivered; the depository does not invoice the fees charged by that company.

Often they are not. The depository may not provide investment advice or value securities — that is a matter for a securities dealer or an expert. However, it publishes a list of cancelled issues of companies dissolved without a legal successor, and an account statement shows what is recorded in the account. The first step is therefore always to establish the position, rather than immediately paying for transfers.

Only an account with no securities recorded in it can be closed, and closure of a holder's account is free. An unclassified account — an account opened with the depository by 30. 9. 2015 — does not even require a closure request: it terminates automatically as soon as no book-entry securities remain recorded in it (§ 173v(3) of Act No. 566/2001 Z. z.).

Movement under § 173v(4) of Act No. 566/2001 Z. z. is free of charge when securities are moved from an unclassified account to an account held by the same holder with a member, upon a request submitted to the member. The CDCP fee schedule does not apply a fee to this movement. Registering the succession of ownership from the deceased to the heir is a different transaction, however, and has its own fee regime. Before filing, we separate the individual steps and itemise the fees charged by both CDCP and the member.

Yes, and combining the two is practical. We represent heirs in inheritance proceedings and can check what the deceased held in the depository's records before the proceedings conclude — so that securities are not discovered only after the decision becomes final, requiring additional inheritance proceedings.