Selling shares - paper certificate

[Mr E]

Hello all.

A request for a quick bit of domain knowledge if I may. I know nothing about this area.

I’m sorting out my father’s estate. I wish to sell some shares he held.
Some are electronic and I believe I need to use the broker he held them with (at least from their FAQ’s).

One of the holdings is old, and paper. I have the certificates.
The broker he used wants 1.9% commission. This seems like a lot for a bit of admin and writing the estate a cheque.

Is this commission a normal amount? If I have the paper certificate, can I use another broker?

[ferret50]

Assume that you do not have a share dealing account anywhere?

I had the same problem, my late father left a block of paper shares...I knew about them only because there was a regular divi payment into his bank account. On a visit to him in the care home I mentioned them and he had no idea what I was asking about....dementia is a horrible thing....

I eventually found the paper certificates and the place that I was trading with took them off me and added them to my CREST account, do not remember there being a fee. I eventually sold 'em, £5k was an unexpected bonus!

I currently have dealing accounts with Trading 212 and Interactive Investor, I doubt the former would take paper, but I would expect II to be helpful.

[Panamax]

Take care of those share certificates. If they go astray you'll be into a world of pain and expense getting the shares back again.

The internet turns up these people who offer a simple share sale service without the need to set up a shareholding account. I have no idea of their reputation or standing,
https://www.sellmysharecertificates.com/?gad_sourc...

[Mr E]

I have no accounts anywhere, but happy to see one up.
Don’t mind paying for work to be done, this just seemed excessive.

Panamax said:

.

The internet turns up these people who offer a simple share sale service without the need to set up a shareholding account. I have no idea of their reputation or standing,

I found similar. Given the difference in cost, spidey senses tingling hence the request for a bit of domain advice.

[Panamax]

Mr E said:

Given the difference in cost,

The real question isn't the percentage, it's what's the actual cost in ££ and how much effort is it worth into reducing that figure. For instance, if there's a significant amount of ££ involved I wouldn't entrust old share certificates to the post. At the very least I'd want a courier and insured to full value. I might even deliver them in person.

[Mr Pointy]

Hargreaves Lansdown will take paper certificates if you open a Fund & Share account:

https://www.hl.co.uk/help/transfers/transferring-t...

However, you will have problems if the name on the shares is not he same as the acount you set up - you'll ned to get the shares transferred to someone (the estate executor maybe?). I'd suggest that the first point of contact are the share registrars for each company you have shares for - both as paper & in a CREST account. As an example here area few relevant registrar pages dealing with bereavment services:

https://www.shareview.co.uk/4/Info/Portfolio/defau...
https://www.computershare.com/uk/individuals/share...
https://bereavement.linkgroup.eu/

Just to reinforce the comments about taking great care with the certificates if you do have to post them - send them by RM Special Delivery (at least) & check the insured cost exceeds the value of the shares. If they are lost the cost of replacing them can exceed the value of the shares as you basically have to indemnify the Registrars against the shares turning up again.

[Jon39]

Mr E said:

Hello all.

A request for a quick bit of domain knowledge if I may. I know nothing about this area.

I’m sorting out my father’s estate. I wish to sell some shares he held.
Some are electronic and I believe I need to use the broker he held them with (at least from their FAQ’s).

One of the holdings is old, and paper. I have the certificates.
The broker he used wants 1.9% commission. This seems like a lot for a bit of admin and writing the estate a cheque.

Is this commission a normal amount? If I have the paper certificate, can I use another broker?

Another stock broker where you could make some enquiries is,
https://www.jarvisim.co.uk/#!/
I have bought shares through them. They have been very business like and do deal with paper certificates.

For your certificated holdings, you are free to choose who sells them for you.

If you wish you could transfer the holdings to youself, or to someone else.
If a gift, then no fees involved. For transfers, download a Share Transfer Form (from a registrars website), then simply send the completed form and share certificate to the relevant registrar of the company concerned.

Edited by Jon39 on Thursday 19th September 21:39

[Mr E]

My thanks to all for the info.

I’m lightly concerned about tax implications if I transfer them to the executor (me) before selling (and realising gain).

Edited by Mr E on Thursday 19th September 22:13

[Mr Pointy]

Mr E said:

My thanks to all for the info.

I’m lightly concerned about tax implications if I transfer them to the executor (me) before selling (and realising gain).

You may well find you can't sell shares you don't own - your name isn't on them, nor on the CREST account.

[alscar]

Mr Pointy said:

Mr E said:

My thanks to all for the info.

I’m lightly concerned about tax implications if I transfer them to the executor (me) before selling (and realising gain).

You may well find you can't sell shares you don't own - your name isn't on them, nor on the CREST account.

Except as Executor you are “ simply “ selling the shares as part of sorting out his estate.
The value of said shares forms part of the estate valuation and irrespective of whether IHT is due there may be an additional element of CGT due post your Fathers passing.
That said the 1.9% commission sounds pretty high.

[Mr E]

alscar said:

Except as Executor you are “ simply “ selling the shares as part of sorting out his estate.
The value of said shares forms part of the estate valuation and irrespective of whether IHT is due there may be an additional element of CGT due post your Fathers passing.
That said the 1.9% commission sounds pretty high.

Exactly this I think.

[Mr Overheads]

Just a thought...will the company the paper certificate is for buy the shares back?

[iansp]

I do not know the name of the company where you have physical share certificates but try the registrar for the company as they may offer a share dealing service for executors.
Example below is Equiniti who are one of the biggest registrars
https://www.shareview.co.uk/4/Info/Portfolio/defau...
https://www.shareview.co.uk/4/Info/Portfolio/defau...