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  • FIRST POST
    • Tea-tart-and-rice
    • By Tea-tart-and-rice 11th Jun 17, 10:43 PM
    • 2Posts
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    Tea-tart-and-rice
    I have inherited some shares. Sell or keep?
    • #1
    • 11th Jun 17, 10:43 PM
    I have inherited some shares. Sell or keep? 11th Jun 17 at 10:43 PM
    Hi, ive inherited 520 lloyds shares. I think they are worth just under £7 each. The probate solicitor wants to know if i want to sell or have them transferred to me. I know very little about shares. Wondering what you would do? Does anyone have any knowledge of lloyds shares and whether they may be worth hanging onto?

    Thankyou.
Page 1
    • cloud_dog
    • By cloud_dog 11th Jun 17, 10:54 PM
    • 3,021 Posts
    • 1,613 Thanks
    cloud_dog
    • #2
    • 11th Jun 17, 10:54 PM
    • #2
    • 11th Jun 17, 10:54 PM
    Hi, ive inherited 520 lloyds shares. I think they are worth just under £7 each.
    Originally posted by Tea-tart-and-rice
    Unfortunately you've miss-priced the shares, they closed on Friday around the 70p mark.

    The probate solicitor wants to know if i want to sell or have them transferred to me. I know very little about shares. Wondering what you would do? Does anyone have any knowledge of lloyds shares and whether they may be worth hanging onto?
    Originally posted by Tea-tart-and-rice
    There are a large number of questions to ask to consider if you should hang on to them.
    1. Do you own shares
    2. Are you comfortable owning shares
    3. Do you own any other financial sector investments
    4. Are you desperate for the money
    5. etc, etc

    From a 'are they worth hanging on to....', again that's a difficult one but bearing in mind all the provisos above some people feel that now LLOY are out from under the Government blanket they should be able to a) try to grow the business as the BoD feel they need to, where they need to, and b) they pay a reasonable divi which could increase over time (depending on lots and lots of other variables).
    Personal Responsibility - Sad but True

    Sometimes.... I am like a dog with a bone
    • Tea-tart-and-rice
    • By Tea-tart-and-rice 11th Jun 17, 11:01 PM
    • 2 Posts
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    Tea-tart-and-rice
    • #3
    • 11th Jun 17, 11:01 PM
    • #3
    • 11th Jun 17, 11:01 PM
    Thank you for your reply. Ah, my sister and i were disagreeing about the value. She was adamant it was pounds not pence. Never mind.

    Ive never owned any shares, and not desperate for the funds - was curious in wondering if anyone else had this dilemmma what would they be inclined to do.
    • jimjames
    • By jimjames 11th Jun 17, 11:20 PM
    • 11,829 Posts
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    jimjames
    • #4
    • 11th Jun 17, 11:20 PM
    • #4
    • 11th Jun 17, 11:20 PM
    If you own no other shares then I'd get rid. You could always invest the proceeds in an index tracker in a S&S ISA but based on the total it won't get you too far
    Remember the saying: if it looks too good to be true it almost certainly is.
    • skid112
    • By skid112 12th Jun 17, 7:55 AM
    • 262 Posts
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    skid112
    • #5
    • 12th Jun 17, 7:55 AM
    • #5
    • 12th Jun 17, 7:55 AM
    Roughly £350 worth. Lloyds have been heavily written about as a stock that could increase dividends given the Govt. exit. Currently yielding around 3.64% (4.36 with the latest special dividend). In my mind one to hold onto
    • jamei305
    • By jamei305 12th Jun 17, 8:26 AM
    • 182 Posts
    • 230 Thanks
    jamei305
    • #6
    • 12th Jun 17, 8:26 AM
    • #6
    • 12th Jun 17, 8:26 AM
    Look at this way - if you hadn't had this inheritance, would you have gone and bought £350 of Lloyds shares? I suspect not, in which case there's not much point in you acquiring some now rather than £350 cash.
    • BeachNut
    • By BeachNut 12th Jun 17, 8:47 AM
    • 78 Posts
    • 19 Thanks
    BeachNut
    • #7
    • 12th Jun 17, 8:47 AM
    • #7
    • 12th Jun 17, 8:47 AM
    If you don't need the cash now I'd keep them.
    • AndyT678
    • By AndyT678 12th Jun 17, 9:10 AM
    • 671 Posts
    • 890 Thanks
    AndyT678
    • #8
    • 12th Jun 17, 9:10 AM
    • #8
    • 12th Jun 17, 9:10 AM
    These questions are always really simple to answer IMO. If your inheritance came as £350 cash rather than shares would you use the cash to buy 520 shares in Lloyds? If yes, keep the shares, if no, sell the shares.
    • gingercordial
    • By gingercordial 12th Jun 17, 1:53 PM
    • 895 Posts
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    gingercordial
    • #9
    • 12th Jun 17, 1:53 PM
    • #9
    • 12th Jun 17, 1:53 PM
    Have you been advised of what the fees would be to sell the shares? Depending on how much it is it might be an incentive to keep them if it is too high a percentage.

    I have a handful of shares left over from a previous employer's bonus scheme - I left the company and most got sold automatically to pay the tax bill, so these were the few remaining. I wasn't given a choice as to whether or not to keep them, they were just handed over to me. I could of course now ask a broker to sell them if I wanted to.

    At the moment they're worth about £1,000 and no, if someone asked me right now if I'd buy those shares again with £1,000 from my savings I wouldn't choose to, but there are fees for selling them which put me off and I don't need access to the money at the moment. I'm therefore happy to keep receiving the dividend twice a year and bide my time to see if they ever get taken over; a couple of years ago there was a bid for the company at a very good price which would have taken them off my hands for no fee, but that fell through. I expect there'll be another bid one day.

    If I had been given a choice at the time I probably would have taken the money but probably would have spent it on something pointless as that was long before I really took control of my finances... As it stands at today's price they are worth 2.2x the value on the day the rest were disposed of, so not a bad choice to have forced on me.

    I do think everyone else's advice is sound of course!
    • steampowered
    • By steampowered 12th Jun 17, 2:20 PM
    • 1,390 Posts
    • 1,376 Thanks
    steampowered
    It doesn't seem worth the effort of holding onto £350 worth of shares.

    I would sell them and combine the money with the rest of my assets in my Stocks & Shares ISA.
    • tea=tart=and=rice
    • By tea=tart=and=rice 12th Jun 17, 4:24 PM
    • 6 Posts
    • 6 Thanks
    tea=tart=and=rice
    Thank you everyone for the constructive advice.

    More important than the dilemma of keep/sell is the fact that it has uncovered the solicitor's incorrect valuation - his letter to my sister advised that they were worth £6.98 each and each holding was worth in excess of £3,900!!!!

    Only discussing it together ahd my asking the question on here has it now become apparent that his valiation is way out!

    I asked him to clarify via email and he agrees 'we' are right!

    Havent got much confidence in him now regardless of share value...

    On the matter in question i think i may hang onto them - for a rainy day.
    • badger09
    • By badger09 12th Jun 17, 4:28 PM
    • 4,976 Posts
    • 4,175 Thanks
    badger09
    Thank you everyone for the constructive advice.

    More important than the dilemma of keep/sell is the fact that it has uncovered the solicitor's incorrect valuation - his letter to my sister advised that they were worth £6.98 each and each holding was worth in excess of £3,900!!!!

    Only discussing it together ahd my asking the question on here has it now become apparent that his valiation is way out!

    I asked him to clarify via email and he agrees 'we' are right!

    Havent got much confidence in him now regardless of share value...

    On the matter in question i think i may hang onto them - for a rainy day.
    Originally posted by tea=tart=and=rice
    If that solicitor is/was responsible for obtaining Probate I would be very concerned. Are you or your sister Executors, or beneficiaries, of the estate in question?
    • AnotherJoe
    • By AnotherJoe 12th Jun 17, 5:20 PM
    • 6,525 Posts
    • 6,943 Thanks
    AnotherJoe

    On the matter in question i think i may hang onto them - for a rainy day.
    Originally posted by tea=tart=and=rice
    Don't you mean a day with 5 minutes of mild drizzle?
    • bowlhead99
    • By bowlhead99 12th Jun 17, 6:30 PM
    • 6,408 Posts
    • 11,339 Thanks
    bowlhead99

    On the matter in question i think i may hang onto them - for a rainy day.
    Originally posted by tea=tart=and=rice
    You are far better holding cash for a rainy day.

    Say the shares are worth £350 today. In ten year's time they will be worth some random number between £0 and, say, £700. Meanwhile you'll hopefully have received a few dividend cheques here and there along the way, perhaps a fiver each twice a year, which you have the hassle of having to go and pay into your bank when you get around to it. Instead of just putting the money in a 100% safe bank account (the best current accounts and regular savers pay about 5%) and having actual real money that functions very well as a rainy day fund or savings boost.

    Then when you decide you want the money and the solicitor is long gone, you'll come back on here again to find out what the rough correct value is and get recommendations of the best way to sell them, endure questions and comments about whether now is a good time to sell or not, etc etc.

    The advice to not sell now to avoid fees for selling is a dead herring, because if they are your rainy day fund you will still be selling them - which will incur fees to do so - at some point down the line. And you don't know if the value of the shares then will be any better than it is now (it might be half the value it is today). You'd have to keep the certificates or login details safe until that point; and you might be in more of a hurry to sell them than you are now so you would use the quickest way rather than the most economical way, etc.

    As others have suggested, if you didn't already own the shares, you wouldn't spend £350 on buying them. Lloyds are one company out of a couple of thousand companies listed in the UK and out of many tens of thousands of companies listed on stock markets around the world. They focus on one specific area (banking) out of the hundreds of different industries a company could be involved in.

    They might sound big because they are worth £50 billion, but that's less than a thousandth of the value of all shares around the world and demand for its shares is very heavily dependent on how UK-focused banking business such as Lloyds will fare in the UK economic environment before, during and after the expected Brexit. You can't begin to project exactly what will happen to their financial strength or share price, other than you will maybe make a bit of money or maybe lose your shirt.

    The "money saving expert" thing to do when you get an inheritance is to look at the value of what you have and then decide how to spend, save or invest it wisely. It's ludicrous that you would decide that the best thing to do with your inheritance is to buy 520 shares in a UK-focused banking business.

    Someone supremely lazy might just say, sod it, I can't be bothered doing anything about the fact I have these shares, I will just kick the can down the road until I have lost the share details and then have to go to the hassle of re-proving that I own them, and maybe if they're worth more money than they are today I will cash them in and if they're not worth very much I'll just throw them in the bin to avoid paying stockbroker fees to sell them.

    That latter approach is probably the easiest thing to do, but generally the silliest.
    Last edited by bowlhead99; 12-06-2017 at 6:33 PM.
    • elephantrosie
    • By elephantrosie 12th Jun 17, 7:00 PM
    • 316 Posts
    • 76 Thanks
    elephantrosie
    if that is hsbc shares, i will be keeping them
    Getting bored of my 9 to 5 job.
    • Doinfine
    • By Doinfine 12th Jun 17, 8:20 PM
    • 9 Posts
    • 9 Thanks
    Doinfine
    If you don't need the money then keep them.
    • Audaxer
    • By Audaxer 12th Jun 17, 8:56 PM
    • 206 Posts
    • 55 Thanks
    Audaxer
    On the matter in question i think i may hang onto them - for a rainy day.
    Originally posted by tea=tart=and=rice
    If someone came on to this forum and said they had £350 to invest but didn't know how or where to invest it, no-one would advise them to invest in shares of an individual company. They would probably suggest a much less risky option like a multi asset fund of shares and bonds.

    So it would probably be better to either sell the shares and keep the cash for a rainy day, or better still read through some of this forum and learn a bit about investing - you may then want ask more questions and consider opening a S&S ISA and use this as an opportunity to start investing for the future. Just something to consider as an alternative to keeping the shares or the cash.
    • jimjames
    • By jimjames 12th Jun 17, 10:00 PM
    • 11,829 Posts
    • 10,194 Thanks
    jimjames
    if that is hsbc shares, i will be keeping them
    Originally posted by elephantrosie
    The OP says Lloyds shares not HSBC
    Remember the saying: if it looks too good to be true it almost certainly is.
    • badger09
    • By badger09 13th Jun 17, 10:17 AM
    • 4,976 Posts
    • 4,175 Thanks
    badger09
    The OP says Lloyds shares not HSBC
    Originally posted by jimjames
    But some posters would rather post irrelevant comments than read the opening post in a short thread
    • tea=tart=and=rice
    • By tea=tart=and=rice 13th Jun 17, 12:41 PM
    • 6 Posts
    • 6 Thanks
    tea=tart=and=rice
    Thankyou. A few times an s&s isa hasbeen mentioned to me. I think i will definitely look into this.

    Ive also re-read all helpful replies and have decided just to sell them. Had they been worth what i originally was told by the solicitor who, by the way, tells me now when i asked hi. Why he got it wrong, says he 'misread the info from a website" (shakes head in despair) this from a man charging me £180 per hour for that privilege!

    Probate was granted couple months ago thankfully and so e funds have been receuved. This seems one of the finalities. Was my father's choice not mine. I would never have used this firm anyway as they acted for my ex-husband some years ago. Losing both parents within six weeks of each last summer i didnt at the time have the emotional strength to see if we were able to appoint a different firm. The firm were appointed executors.

    Will be glad when its all sorted. Thanks all for your help. I just needed to ask to try see wood for the trees.
    Last edited by tea=tart=and=rice; 13-06-2017 at 12:48 PM.
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