Old share certificates - deceased person
Discussion
A friend of mine is trying to sort out his parents estate as they have recently passed away.
His parents had many share certificates. However, he doesn't know which ones are valid, which one have been superseded by new share classes/types over the years etc. Many of the issuing companies won't speak to him as he hasn't been granted probate, and he cant get probate until he declares the value of the estate, and he can't do this until he knows the value of the shares. (I think this is the situation, might be some inaccuracies here).
Anyway, does anyone know how he can find out which shares certificates are 'valid'?
His parents had many share certificates. However, he doesn't know which ones are valid, which one have been superseded by new share classes/types over the years etc. Many of the issuing companies won't speak to him as he hasn't been granted probate, and he cant get probate until he declares the value of the estate, and he can't do this until he knows the value of the shares. (I think this is the situation, might be some inaccuracies here).
Anyway, does anyone know how he can find out which shares certificates are 'valid'?
He needs to start by working through the shares and getting a guesstimate of overall value.
He should be able to guesstimate the folks wealth by looking at their last year's income tax return. For instance, if there's £30k of dividend income you can guesstimate shares worth £1m. If they didn't need to fill in tax returns (Total income under about £42k) then look at their bank statements and pick up the dividend income from there.
The share prices of all stock exchange listed companies are available online so it's an easy task to get the ball-park. He may eventually need to get the exact share price at date of death, but that comes later.
If he knows the value of the folks house (assuming they owned one) and whether they made any large gifts in the past 7 years he can immediately see how much headroom may remain under the IHT threshold.
He should be able to guesstimate the folks wealth by looking at their last year's income tax return. For instance, if there's £30k of dividend income you can guesstimate shares worth £1m. If they didn't need to fill in tax returns (Total income under about £42k) then look at their bank statements and pick up the dividend income from there.
The share prices of all stock exchange listed companies are available online so it's an easy task to get the ball-park. He may eventually need to get the exact share price at date of death, but that comes later.
If he knows the value of the folks house (assuming they owned one) and whether they made any large gifts in the past 7 years he can immediately see how much headroom may remain under the IHT threshold.
I think it was established in a previous thread on this subject that registrars won't play ball without a grant of probate. There's some information on this link and there may be more elsewhere,
http://www.pistonheads.com/gassing/topic.asp?t=147...
http://www.pistonheads.com/gassing/topic.asp?t=147...
jfbrin said:
Let's be clear here. You are not the "owner" of the shares in your own right until you register an original copy of the grant of probate with the Registrar and have the shares reregistered in your own name as beneficiary. The shares are registered in the your name as Executor of your mother's estate pending grant of probate. Once you have the grant of probate, you are then in a position to instruct the Registrar to do whatever has to be done in order to carry out your mother's instructions as per her will.
You could sell the shares via a third party stock broker if you send in an original share cert in your late mother's name or ideally an amended certificate with your details as executor noted. Plus you will need a signed crest transfer form and an original grant of probate. The cheque for the proceeds would be payable to the Executor of your mother's estate. Then the Exor pays those monies to the beneficiary i.e. you pay yourself from your executor's account.
Selling certificated holdings from outside crest (electronic paperless system) is a pain and does require additional paperwork which takes time to process thus making the process more expensive.
This is my understanding of the process but double check first with whatever broker you intend to use but I think it would be easier to deal directly with the Registrar.
You could sell the shares via a third party stock broker if you send in an original share cert in your late mother's name or ideally an amended certificate with your details as executor noted. Plus you will need a signed crest transfer form and an original grant of probate. The cheque for the proceeds would be payable to the Executor of your mother's estate. Then the Exor pays those monies to the beneficiary i.e. you pay yourself from your executor's account.
Selling certificated holdings from outside crest (electronic paperless system) is a pain and does require additional paperwork which takes time to process thus making the process more expensive.
This is my understanding of the process but double check first with whatever broker you intend to use but I think it would be easier to deal directly with the Registrar.
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