Yes! You can use AI to fill out Stock Power Form For transferring shares, changing names, or adding a beneficiary

A very common and critical error is getting a standard notary public seal in Section E instead of the required Medallion Signature Guarantee. People mistake them, but a notary only verifies identity, while a Medallion Guarantee also insures the transaction against fraud and confirms the signer's legal authority. Submitting a form with a notary seal will result in immediate rejection and significant processing delays. To avoid this, you must visit an eligible bank, broker, or credit union and specifically request a Medallion Signature Guarantee for the transfer of securities.

The form explicitly states that any alterations, corrections, or use of white-out will render it invalid. This is a strict legal requirement to prevent fraudulent modifications. People often make this mistake thinking a small, neat correction is acceptable, but any visible change voids the entire document. If an error is made, you must start over with a new, clean form. Using an AI-powered form filling tool like Instafill.ai can prevent this by allowing you to review and edit all information digitally before printing the final, error-free copy.

In Section A, filers often write their name from memory instead of copying the exact legal registration from an official document. The 'Current Registration' must precisely match the name(s) and ownership title as it appears on account statements or tax forms. Any deviation, such as a missing middle initial, using a nickname, or incorrect trust name, will cause a mismatch and result in the transfer request being rejected. Always have a recent account statement on hand to copy the registration verbatim.

The signature in Section G (Substitute Form W-9) must belong to the new owner whose Tax ID (SSN or EIN) is listed in Section F. A frequent mistake is having the original owner sign this section, or if it's a new joint account, having the wrong person sign. This mismatch will cause the form to be rejected or lead to backup tax withholding issues for the new account. To prevent this, ensure the person whose tax number is being used for the new account is the one who signs and dates Section G.

In Section B, a common error is checking the 'Transfer ALL shares' box while also entering a specific number of shares in boxes 5, 6, or 7. This creates ambiguity and forces the processing agent to reject the form for being unclear. This usually happens when the filer is uncertain about the exact number of shares and tries to cover all bases. To avoid this, decide definitively whether you are transferring all shares or a specific portion; if transferring all, leave the specific share boxes completely blank.

When transferring shares held as physical certificates (indicated in Section B, box 7), the original paper certificates must be mailed with the Stock Power form. People often forget this crucial step or send photocopies, assuming the form itself is sufficient. Without the original certificates, the transfer cannot be processed, leading to delays until the physical documents are received or a lost certificate process is initiated, which involves extra fees and paperwork.

When transferring stock to several different people or entities, filers often try to list all new owners on one form. The instructions require a completed page one, plus a separate, unique copy of page two for each new account being created. Failing to do this will result in only the first listed transfer being processed, or the entire request being rejected. You must photocopy the blank page two and fill it out completely for each recipient, indicating the specific number of shares for each.

Even when a correct Medallion Signature Guarantee is obtained, the guarantor at the financial institution may mistakenly date or add notes to the stamp area. The form explicitly warns the guarantor that the stamp 'must NOT be dated or annotated,' as this invalidates the guarantee. This error requires the filer to go back to the institution and have the form re-stamped on a new, clean document. When obtaining the stamp, it's wise to point out this specific instruction to the representative to prevent the error.

When 'Inheritance' is selected in Section C, the 'Date of Death' and 'Fair Market Value Per Share' are required fields for tax purposes. Filers often leave these blank, not realizing their importance for establishing the new owner's cost basis, which affects future capital gains taxes. Leaving this information out can result in an incorrect or 'unknown' cost basis being recorded, creating tax complications for the heir. The estate's representative should determine this value and include it on the form.

Due to the requirement for an original Medallion Signature Guarantee stamp, this form cannot be submitted electronically. People accustomed to digital workflows may try to fax, email, or mail a photocopy of the completed form. The processing agent will reject any submission that is not the original document with the original 'wet' signatures and stamp. If the form is a non-fillable PDF, a tool like Instafill.ai can convert it to a fillable version for clean data entry before you print the original for signing and mailing.