Is it legal for an investment company to require a Medallion Signature Guarantee even if I am unable to get one, therefore holding my money "hostage?" I am the named beneficiary of my deceased father's IRA account. I know that Medallion Signature Guarantee requirements are common, but I also know that obtaining the Medallion Signature Guarantee is not easy. I am not able to get one, end of story, and want to know if this means that I simply can never have the money that my father left me. Do I have any legal recourse?
2 Answers from Attorneys
Without reviewing the document(s) which were utilized to originally establish this IRA account with this investment company, I don't see how any credible answer could be provided to this question.
Getting a medallion signature guarantee is not difficult, though most banks will only guarantee the signature of a customer. If you do not have a bank account, you will have to set up an account, which you would do by investigating which banks in your area will guarantee the signature of their customer; most banks would be interested in having a deposit of your father's IRA account proceeds, even if you withdraw the funds after the deposit.