Inheriting shares

Skibunny40

Could some of you knowledgable people please settle a debate in our house about wills and inheritance?!

Are shares / managed funds automatically transferred as shares /managed funds to the person that inherits, or do they have to be cashed in (if there's only one beneficiary). Does there have to be something in the will specifying this either way?

TonyMMM

A matter of preference really,

The ownership of shares can be transferred over - the executor, once probate has been granted sends the share certificate with a transfer form to the share registrar and a new share certificate will be issued in the name of the beneficiary.

Alternatively, the will could specify that any shares are to be sold and the proceeds given to the beneficiary.

Both ways are equally valid.....

System

And if there are two beneficiaries and one is content to take it in shares but the other wants cash, then either half the shares can be sold, or the inheritancies adjusted by agreement so that for example one takes all shares and the other all cash. One beneficiary is free to buy out the other in order to take specific items - shares, house, etc.
But a lot of heartbreak can be caused by insensitive or domineering executors who insist on selling things instead of offering them to beneficiaries first. It can all be specified in the will if the any specific items matter to an individual.

Skibunny40

Thanks for the quick replies. So there's no difference between how individual shares and managed funds are treated in terms of inheriting?