Beneficiary of Will/Assets in Shares

[solo2]

A late relative has very kindly left me a share of his Estate which is all currently tied up in Shares. Given the drop in the value of these shares recently can I request that my portion is not cashed in and sold yet but left for a period of time to hopefully gain a better value. I appreciate that this may take a while if it gains anything at all.

Before anyone says ask the Solicitor, I have but so far there has been no response to my email from him and I'm just curious if this can be done. Failing that I may by some shares with the proceeds I'm given and see if I can get a better financial return from the money in the long term.

[Blib]

I'm in the same position. My solicitor informed me that any sale of shares can be delayed.

HTH.

[anonymous-user]

• You can accept shares instead of cash but it's unusual. Mainly because it's much easier to administer an estate in cash - especially if there's IHT to be paid.
• Clearly when you receive cash you have the opportunity to buy identical shares if you wish, so it often doesn't make much difference.
• For probate/IHT purposes shares (and other assets) are valued at the date of death, so it's entirely possible for share prices to slump from those valuations.
• Executors can delay sale for a while but all the usual "timing the market" warnings apply.

Example,

• Stock market share price £10 at date of death.
• 40% IHT payable = £4
• Share price has fallen to £7 by the time executors sell it (or by the time the share is transferred to you)
• The £4 IHT liability doesn't change - that £4 tax must be paid by the executors
• You only get £3 net from a share that had been worth £10!
• When the executors fill in their Income/CGT tax return they will have a £3 "allowable loss" but can't transfer that loss to anyone else. It's wasted (unless they have made gains elsewhere to offset.)
• Your own base value for CGT will be at the low £7

[davek_964]

My mum had some BT shares - not a huge amount, but some. I wanted them sold, so I could distribute the proceeds between my brothers and I - but the share company told me that wasn't possible - they transferred them into my name, and it was then up to me when I sold them (I was the executor).

[anonymous-user]

davek_964 said:

My mum had some BT shares....

I expect you were dealing with the Registrar, who simply keeps a list of shareholders for the company and can process the mechanics of transfers. They don't get involved in selling shares.

To sell shares you need to deal via a "broker" or "platform" whether you're an executor or individual shareholder. BT shares are definitely sellable either way.

[Jon39]

There might be a difference when the balance of the estate is left to several beneficiaries.

I was the sole beneficiary and the executor did allow me to make the decisions about assets.
Specific equities were sold to pay IHT, then all remaining assets were transferred, without being sold first.

I think there might be an applicable IHT rule, when values fall suddenly after the date of death.
See what you can find out. It might possibly reduce the IHT.