Stocks Transfer After Death - Help!

luke222010

Hi all, hoping someone can help us.

My Mother is executor to my Grandfathers will. His finances were sorted back in July but my Mother received a couple of forms from Aviva and Santander this week regarding some shares my Grandfather had. The total value of the Santander shares is just over £2000, the total for the Aviva shares is around £900.

She's been given a computer share form to fill out to transfer ownership of the shares for Aviva but some of the questions she's been asked to fill out on there are less than helpful. Santander sent no such form so we are somewhat confused why Aviva did.

My Mother doesn't wish to transfer ownership of the shares, she just wants to sell them back to each company and receive the cash sum for each.

She has started filling out the computer share form from Aviva, but section 9 has confused us, and I'm wondering if anyone can enlighten us please:

"9) Form of certification required where transfer is exempt from ad valorem Stamp Duty as below threshold. If consideration is paid in
connection with the transfer of between 1p and £1000, then Certificate 1 on the reverse of the form (section 9) must be completed to certify that the transaction does not form part of a larger transaction or series of transactions that would incur a Stamp Duty liability. Failure to complete Certificate 1 (section 9) in these circumstances will cause the transfer to be rejected.
Form of certification where transfer is otherwise exempt from Stamp Duty or no chargeable consideration is given for the transfer.
Where the transfer is otherwise exempt from duty or there is no chargeable consideration, then Certificate 2 on the reverse of the form (section 9) must be completed. Failure to do so will cause the transfer to be rejected.
If the transfer is liable to Stamp Duty, the completed Stock Transfer form must be submitted to the Stamp Office."

The amount of shares the computer share form relates to is just over £900 with Aviva, but because there are also shares with Santander for just over £2000, does this technically mean that it "forms a series of transactions" and therefore mean that my Mother must submit the completed stock transfer form to the stamp duty office before sending it back to computer share?

The form in question can be found here-https://www-uk.computershare.com/Content/download.asp?docId={0A040860-549B-4C8B-8255-4ECBC9B590DC}&cc=UK&lang=en&bhjs=1&fla=1&theme=cpu

Any info anyone can provide would be much appreciated.
Thanks,
L.

Vortigern

The key words are:

Consideration Nil: If the consideration money paid for the transfer is Nil there will be no Stamp Duty payable. Please write ‘Nil’ in section 1. Section 9 does not need to be completed or signed.

Which means that if the shares are gifted (not sold) to their new owner, there is no stamp duty to pay.

You will need to transfer shares ownership from grandfather to your mother, before the shares can be sold.

Aviva seem to be doing the right thing. You need a similar form for the Santander shares.

xylophone

You will need to transfer shares ownership from grandfather to your mother, before the shares can be sold.

Could the mother not sell as executor to her father's estate?

luke222010

Vortigern wrote: »

The key words are:

Which means that if the shares are gifted (not sold) to their new owner, there is no stamp duty to pay.

You will need to transfer shares ownership from grandfather to your mother, before the shares can be sold.

Aviva seem to be doing the right thing. You need a similar form for the Santander shares.

Thanks for the quick reply. Your comments prompted me to google "consideration money", I probably should have done this before posting. Thank you for replying.

colsten

Never mind stamp duty. What about CGT and IHT?

Vortigern

colsten wrote: »

Never mind stamp duty. What about CGT and IHT?

Firstly, when the OP wrote: "My Mother is executor to my Grandfathers will. His finances were sorted back in July" I assume that taxes will have been accounted for in order to obtain probate and the executrix is now distributing the assets as directed in the will.

Secondly, there appears to be no CGT liability on death, unless the deceased had made chargable, but undeclared, gains during his lifetime. See HMRC Helpsheet 282 (PDF)

Thirdly, the gain on shares worth £2900 is unlikely to make much impression on a CGT allowance of £11,000 unless other gains were made elsewhere.

Fourthly, do you work for HMRC on commission?

Vortigern

Vortigern wrote: »

You need a similar form for the Santander shares.

Santander's process looks complicated and expensive.

Post 3 in this earlier thread suggests their fees can be avoided.

OP should visit the Deaths Funerals & Probate board for further advice.

I'm beginning to think that board should be a little more prominent; perhaps in the Essential Money grouping so I don't have to search for it. I don't often go there, but there are some knowledgable people who do.

Vortigern

xylophone wrote: »

Could the mother not sell as executor to her father's estate?

Yes, she can, although it's sometimes hard to find the process.

Link to Equiniti Shareview and click on the plus signs next to "Register ...using Grant of Representation" and "Sell shares from an estate"

luke222010

colsten wrote: »

Never mind stamp duty. What about CGT and IHT?

Solicitor has already dealt with 95% of the estate back in July/August. These shares forms have only just come through, so they are the last bits of the estate to tie up. No CGT or IHT is due.

luke222010

Vortigern wrote: »

Yes, she can, although it's sometimes hard to find the process.

Link to Equiniti Shareview and click on the plus signs next to "Register ...using Grant of Representation" and "Sell shares from an estate"

I've taken this from the site you helpfully linked to (thank you!).

Managing an Estate of a deceased shareholder is a two stage process; Notification and Registration.Notification of Death
On instruction, notification of a shareholder's death can be applied to a shareholding. This will enable us to place a temporary restriction on the register.Registration of Death
Formal registration of the shareholder's death is then required to enable the appointed legal representative(s) to sell or transfer the shares as appropriate. The death can be registered by either using the Small Estates service or by providing the Grant of Representation.If the appointed legal representative is now deceased, please let us know and we will provide you with details of the Registration process.

I am slightly confused though. Not sure why we would look to go through Equiniti... The shares are with Santander. Can you elaborate please?

Are Equiniti a broker of some sort, i.e. an intermediary who can facilitate the sale of the shares/transfer ownership etc?
Is there a benefit of going through Equiniti rather than direct through Santander?

Thanks again for your reply.

Linton

luke222010 wrote: »

Not sure why we would look to go through Equiniti... The shares are with Santander. Can you elaborate please?

Are Equiniti a broker of some sort, i.e. an intermediary who can facilitate the sale of the shares/transfer ownership etc?
Is there a benefit of going through Equiniti rather than direct through Santander?

Thanks again for your reply.

Equiniti are the Registrar for many large companies. Their role is to manage the shareholder lists, so they can transfer ownership without selling/buying.