Share Dealing Discussion Area

Biggles

Why did the executor pass on the shares to him, when he obviously doesn't want them or know what to do with them?

Why did the executor not sell the shares, which is the normal way of dealing with it, and pass on the cash?

prudryden

LadyTottington wrote: »

Having spent the last hour reading the thread, I decided to be brave and register to ask for some much needed advice.

I am a trustee to a Will trust. Under the terms of the Will trust, I must provide a reasonable income for the life tenant during the remainder of her lifetime (she is 80yrs and not in good health) and capital growth for the reamaindermen (other family members).

Advice from an IFA recommends we consider a portfolio of unit trusts and oeics, using Selestia as a platform from which to select from the top fund managegment companies. Skandia UK is suggested. If we take this up, we pay a one off fee of £9,000 and then the annual management fee.

So my question is:

Would I be better placing the money into several bank accounts upto the max £50,000 for protection from FSCS and having the interest paid directly to the life tenant?

OR

Buying shares via a bank like Natwest, HSBC, Lloyds etc and all dividends paid directly to the life tenant?


OR

Buying shares via Selftrade that I have read about on this thread?

My research tells me that 5 years minimum is the best bet to keep money invested, but if the life tenant did pass away earlier than 5 years the remaindermen want the money asap. This is adding to my hesitation to invest without researching all other available options.

I have no experience of handling money in this way, a rainy day fund, in a good bank account I rarely dip into, is about the level of my experience. I would really appreciate some advice on which way to jump to make this money work for all concerned.

Many thanks
LadyTottington

As a Trustee of the will trust, you have a potential legal duty of care to all beneficiaries. Therefore, you should consider placing 50% of the portfolio in fixed income government or investment grade (BBB or better) corporate bonds as income for the life tenant. For the future beneficiaries, you should consider medium to low risk growth equities with good dividends (PERHAPS better to stay with FTSE 100). These dividends would also be paid out to the life tenant. You can do this through an Advisory account or a discretionary account. Be careful of the fees when using IFA's or fee based advice. Depending on size of portfolio, maximum management fees should be in the region of 1% to 1.50% in addition to a small handling charge per trade. Be also careful of sales charges on unit trusts, especially the 4%-5% ones.

prudryden

sabretoothtigger wrote: »

Someone that old doesnt need to own shares. Arent annuities best for old people

Yes, perhaps 50% could rightly be invested in an annuity, although the income would not be very great for the life tenant, but the remaining beneficiaries would have to be considered by the trustee as to the investment choices that are made.

cheerfulcat

Hello, LadyT,

LadyTottington wrote: »

I am a trustee to a Will trust. Under the terms of the Will trust, I must provide a reasonable income for the life tenant during the remainder of her lifetime (she is 80yrs and not in good health) and capital growth for the reamaindermen (other family members).

Advice from an IFA recommends we consider a portfolio of unit trusts and oeics, using Selestia as a platform from which to select from the top fund managegment companies. Skandia UK is suggested. If we take this up, we pay a one off fee of £9,000 and then the annual management fee.

So my question is:

Would I be better placing the money into several bank accounts upto the max £50,000 for protection from FSCS and having the interest paid directly to the life tenant?

OR

Buying shares via a bank like Natwest, HSBC, Lloyds etc and all dividends paid directly to the life tenant?


OR

Buying shares via Selftrade that I have read about on this thread?

As this is a legal obligation on your part, I would suggest that your best option is to take the advice of an IFA ( not necessarily the one you have engaged ).

As to the fee, it is impossible to say whether this is excessive without knowing the amount of capital involved.

KATTY

Biggles wrote: »

Why did the executor pass on the shares to him, when he obviously doesn't want them or know what to do with them?

Why did the executor not sell the shares, which is the normal way of dealing with it, and pass on the cash?

There was no will and a solicitior was appointed by his brother who acted for probate. The solicitor advised that because one of the 4 brothers wants the shares then they all have to have share and they cannot be sold? The solicitor advised that they all had to have a share account before he would distribute the money between them all. Two brother want share and the other 2 don't as they no idea what to do with them.The solicitor seems not to be working for them all but the one brother but they are all paying his fee.

Biggles

KATTY wrote: »

There was no will and a solicitior was appointed by his brother who acted for probate. The solicitor advised that because one of the 4 brothers wants the shares then they all have to have share and they cannot be sold? The solicitor advised that they all had to have a share account before he would distribute the money between them all. Two brother want share and the other 2 don't as they no idea what to do with them.The solicitor seems not to be working for them all but the one brother but they are all paying his fee.

I can't think that's he's correct, on more than one level. I thought shares were only passed on if where was agreement, otherwise they were cashed. And if they must be passed on, I can see no reason why the solicitor shouldn't be capable of passing on share certificates, which require no account.

Why is the brother using a solicitor at all, is it a very complex estate?

Additional thought: If two brothers are so keen on receiving shares, and the others don't want them, there's absolutely no reason why those two can't receive them all and the other two receive the cash equivalent. Less trouble for all concerned and the same result financially.

sabretoothtigger

[CENTER][COLOR=Blue][B]Mon 14th September[/B][/COLOR][/CENTER]

[B]UK[/B]
[URL="http://www.investorresearch.mdgms.com/factsheet/factsheet.html?ID_COMPANY=49783"]ASTRAZENECA PLC[/URL] Interim 2009 Dividend payment date
[URL="http://www.investorresearch.mdgms.com/factsheet/factsheet.html?ID_COMPANY=133750"]GREENE KING PLC[/URL] Full year 2008 Dividend payment date - proposed

[CENTER][COLOR=Blue][B]Tue 15th September[/B][/COLOR][/CENTER]

[B]UK[/B]
[URL="http://www.investorresearch.mdgms.com/factsheet/factsheet.html?ID_COMPANY=125279"]MURRAY INCOME TRUST PLC[/URL] Full year 2009 Preliminary results
[URL="http://www.investorresearch.mdgms.com/factsheet/factsheet.html?ID_COMPANY=216451"]ASHMORE GROUP[/URL] Full year 2009 Preliminary results
[URL="http://www.investorresearch.mdgms.com/factsheet/factsheet.html?ID_COMPANY=434388"]DUNELM GROUP[/URL] Full year 2009 Preliminary results
[URL="http://www.investorresearch.mdgms.com/factsheet/factsheet.html?ID_COMPANY=137525"]DAVID S. SMITH (HOLDINGS) PLC[/URL] Full year 2008 Dividend payment date - proposed
[URL="http://www.investorresearch.mdgms.com/factsheet/factsheet.html?ID_COMPANY=451335"]MONDI PLC[/URL] Interim 2009 Dividend payment date

[B]Other[/B]
[URL="http://www.investorresearch.mdgms.com/factsheet/factsheet.html?ID_COMPANY=451335"]MONDI PLC[/URL] Interim 2009 Dividend payment date(ZA)
[URL="http://www.investorresearch.mdgms.com/factsheet/factsheet.html?ID_COMPANY=465603"]THOMSON REUTERS PLC[/URL] Q2 2009 Dividend payment date(CA)

[CENTER][COLOR=Blue][B]Wed 16th September[/B][/COLOR][/CENTER]

[B]UK[/B]
[URL="http://www.investorresearch.mdgms.com/factsheet/factsheet.html?ID_COMPANY=47827"]NEXT PLC[/URL] Interim 2009 Results
[URL="http://www.investorresearch.mdgms.com/factsheet/factsheet.html?ID_COMPANY=47809"]PREMIER FARNELL PLC[/URL] Interim 2009 Ex-dividend date
[URL="http://www.investorresearch.mdgms.com/factsheet/factsheet.html?ID_COMPANY=48181"]LOGICA PLC[/URL] Interim 2009 Ex-dividend date
[URL="http://www.investorresearch.mdgms.com/factsheet/factsheet.html?ID_COMPANY=136861"]RATHBONE BROS[/URL] Interim 2009 Ex-dividend date
[URL="http://www.investorresearch.mdgms.com/factsheet/factsheet.html?ID_COMPANY=422506"]RESTAURANT GROUP PLC[/URL] Interim 2009 Ex-dividend date
[URL="http://www.investorresearch.mdgms.com/factsheet/factsheet.html?ID_COMPANY=451514"]MONEYSUPERMARKET.COM[/URL] Special ex-dividend date
[URL="http://www.investorresearch.mdgms.com/factsheet/factsheet.html?ID_COMPANY=127014"]ST JAMES'S PLACE CAPITAL[/URL] Interim 2009 Dividend payment date
[URL="http://www.investorresearch.mdgms.com/factsheet/factsheet.html?ID_COMPANY=413253"]DRAX GROUP PLC[/URL] Interim 2009 Ex-dividend date
[URL="http://www.investorresearch.mdgms.com/factsheet/factsheet.html?ID_COMPANY=47089"]CADBURY PLC[/URL] Interim 2009 Ex-dividend date
[URL="http://www.investorresearch.mdgms.com/factsheet/factsheet.html?ID_COMPANY=408286"]HIKMA PHARMACEUTICALS PLC[/URL] Interim 2009 Ex-dividend date
[URL="http://www.investorresearch.mdgms.com/factsheet/factsheet.html?ID_COMPANY=403118"]KESA ELECTRICALS PLC[/URL] Full year 2009 Ex-dividend date - proposed
[URL="http://www.investorresearch.mdgms.com/factsheet/factsheet.html?ID_COMPANY=47076"]LAND SECURITIES GROUP PLC[/URL] Q1 2009 Ex-dividend date
[URL="http://www.investorresearch.mdgms.com/factsheet/factsheet.html?ID_COMPANY=451514"]MONEYSUPERMARKET.COM[/URL] Interim 2009 Ex-dividend date
[URL="http://www.investorresearch.mdgms.com/factsheet/factsheet.html?ID_COMPANY=110386"]ANTOFAGASTA PLC[/URL] Interim 2009 Ex-dividend date
[URL="http://www.investorresearch.mdgms.com/factsheet/factsheet.html?ID_COMPANY=138116"]TEMPLE BAR INV[/URL] Interim 2009 Ex-dividend date
[URL="http://www.investorresearch.mdgms.com/factsheet/factsheet.html?ID_COMPANY=132879"]DAVIS SERVICE GROUP PLC[/URL] Interim 2009 Ex-dividend date

[CENTER][COLOR=Blue][B]Thu 17th September[/B][/COLOR][/CENTER]

[B]UK[/B]
[URL="http://www.investorresearch.mdgms.com/factsheet/factsheet.html?ID_COMPANY=48105"]KINGFISHER PLC[/URL] Interim 2009 Results
[URL="http://www.investorresearch.mdgms.com/factsheet/factsheet.html?ID_COMPANY=48676"]CARNIVAL PLC[/URL] Q3 2009 Results
[URL="http://www.investorresearch.mdgms.com/factsheet/factsheet.html?ID_COMPANY=133400"]KIER GROUP[/URL] Full year 2009 Preliminary results
[URL="http://www.investorresearch.mdgms.com/factsheet/factsheet.html?ID_COMPANY=137102"]ROBERT WISEMAN[/URL] Full year 2008 Dividend payment date - proposed
[URL="http://www.investorresearch.mdgms.com/factsheet/factsheet.html?ID_COMPANY=47343"]SPIRENT PLC[/URL] Interim 2009 Dividend payment date

[B]US[/B]
[URL="http://www.investorresearch.mdgms.com/factsheet/factsheet.html?ID_COMPANY=48676"]CARNIVAL PLC[/URL] Q3 2009 Results

[CENTER][COLOR=Blue][B]Fri 18th September[/B][/COLOR][/CENTER]

[B]UK[/B]
[URL="http://www.investorresearch.mdgms.com/factsheet/factsheet.html?ID_COMPANY=441054"]BLUEBAY ASSET MANAGEMENT[/URL] Full year 2009 Preliminary results
[URL="http://www.investorresearch.mdgms.com/factsheet/factsheet.html?ID_COMPANY=47460"]PEARSON PLC[/URL] Interim 2009 Dividend payment date
[URL="http://www.investorresearch.mdgms.com/factsheet/factsheet.html?ID_COMPANY=52924"]INFORMA GROUP[/URL] Interim 2009 Dividend payment date
[URL="http://www.investorresearch.mdgms.com/factsheet/factsheet.html?ID_COMPANY=215589"]MORGAN SINDALL[/URL] Interim 2009 Dividend payment date

[B]Other[/B]
[URL="http://www.investorresearch.mdgms.com/factsheet/factsheet.html?ID_COMPANY=466633"]FRESNILLO PLC[/URL] Interim 2009 Dividend payment date(MX)

[CENTER][COLOR=Blue][B]Mon 21st September[/B][/COLOR][/CENTER]

[B]UK[/B]
[URL="http://www.investorresearch.mdgms.com/factsheet/factsheet.html?ID_COMPANY=131202"]ALLIANCE TRUST PLC[/URL] Interim 2009 Results

BillytheFish_2

kostigovs wrote: »

My daughter is planning to sell her BT shares. How does she go about transferring the holding to me and does she have to pay for such a service?

Why is she transferring the shares to you rather than just selling the shares herself? You may have to pay her broker and your broker for the transfer, even if they're one and the same, and there will also be capital gains tax to pay if you're over allowances for this year if she transfers to you and then you sell the shares.

LadyTottington

cheerfulcat wrote: »

Hello, LadyT,



As this is a legal obligation on your part, I would suggest that your best option is to take the advice of an IFA ( not necessarily the one you have engaged ).

As to the fee, it is impossible to say whether this is excessive without knowing the amount of capital involved.

The capital involved is just over £200,00... the rest of the captial having been already invested in a property for the life tennent. With this amount of capital, does the fee now seem excessive?

Thank you for the responses... much appreciated.

prudryden

£9,000 up-front fee? AND an annual management fee?

I would say that the big firms would probably charge 1 1/4% to 1 1/2% annual fee only. E.G. Barclay's Wealth Management, Merrill Lynch, Goldman Sachs, etc.

£9,000 is 4 1/2% - sounds like funds to me with most of the 4 1/2% going to the broker as commission. He then is going to charge you an annual fee probably around 1% for sending you statements and monitoring the portfolio. If he is going to charge you an annual fee, then the purchase of the funds should be at net asset value with no commission (no load funds).