Shares and probate

JJDragonLivigno

I am helping my mother with my fathers estate which is awaiting probate.

He had shares in a company for which he worked – partly given as a bonus each year and partly bought.  We have yet to receive a statement of account to show us when these were bought but I am pretty certain they have a net loss compared to when he received/bought them.  They were all declared on his annual tax form.  Mum needs to sell them.

Am I right in thinking that once she receives probate she should sell them without putting them in her name as there would be no capital gains to pay on their sale?  Whereas if she puts them in her name and then sells them she would pay capital gains?  

[Deleted User]

If she inherits the shares, they will in her name.  She would be liable to capital gains on the increase in value from probate date to the date of disposal. She also has an annual exemption of 12300 to apply.

JJDragonLivigno

So whether they are put in her name or not she would just pay the capital gains on the difference in value (positive) from the date dad passed away to the date of sale?
Thanks so much for the quick reply

[Deleted User]

You are correct on the gain point - is it likely that they will gain 12300 on that period?

But of ‘chicken and egg’ here. Your mum can’t sell them unless they are in her name. They will be in her name if she inherits them.

JGB1955

or... the shares can be put into the name of 'executors of the late Mr XX' and sold at that point, without ever being transferred into your mother's name.  Whichever is easiest for all parties concerned.

Depending on the value of the shares you may be able to dispose of them pre-probate via the 'small estates' route.  The fees may be less than selling conventionally.  See Manage an Estate (shareview.co.uk) for an example.

Jeremy535897

Is the company a quoted company? If not, there may be requirements to fulfil concerning their disposal.

JJDragonLivigno

The shares were left to mum so we just have to wait for probate to be granted and then we can sell. 
Thanks for all your help!!
keep safe and well

Jeremy535897

If they are unquoted shares, the company's articles of association (or other documentation) may restrict sales.

JJDragonLivigno

Hi all,
I have come across another question relating t these shares.  They are shares mostly given to my father as part of his annual bonus as an option instead of a cash figure.  Would there be any capital gains selling them?  It is an American company and he did not have voting rights of  more than 25% in the company.  He retired in 2003 and did not take up any more options after that.  They are not worth more than £50,000.00.  Would mum, in this instance pay any capital gains?
Thanks once again for all your help!