Legal heir
Regulation & taxA person entitled to inherit under a will or, in its absence, under succession law.
In plain terms
The nominee receives; the legal heir owns. Confusing the two is how carefully planned money ends up in court.
1492 terms
Glossary
Every term is defined twice: once the way a filing would put it, and once the way somebody would explain it to you across a table. The second one is usually the one that sticks.
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Inherited portfolio
Risk & psychologySecurities received after the death of the holder and transmitted to a nominee or legal heir.
In plain terms
Take three to six months — there is rarely urgency and decisions made during grief are poor. The cost basis generally carries over, so a decades-old holding can carry a very large embedded gain.
Transmission
Market basicsThe process of transferring securities to legal heirs or a nominee after the holder’s death.
In plain terms
Simple with a nomination. Without one, and for a large holding, it can require a court.