Pull out or not?

SeeJayJensen

Hi! My grandfather has some investment in a private hospital. It's been about 3 years now or more and he hasn't received a correct dividend (?) some 1 or 2 years ago. He'd like to pull out because they aren't giving him what he was told to receive but the freebies that come with it will also be lost (like the checkups and whatnots) if he pulls out. Should he wait for at least wait for the 5th year to pull out? Also, if something happens to him *knock on wood* who is it transferrable: to my grandmother or to his children? And if it's his children, is it going to the eldest?
Looking forward to hearing from you!

Linton

 More info needed. What is the investment? It could be shares perhaps in a private company or a loan, perhaps some sort of bond or something else entirely. Do you have any details of the company or hospital. A name or a link to a website would help.

kuratowski

When your grandfather dies, the assets should be distributed as laid out in his will.

If he hasn't written a will, then the rules of intestacy would apply: https://www.gov.uk/inherits-someone-dies-without-will

steampowered

It would be advisable for your grandfather to withdraw the investment if that is possible. 

Having a significant chunk of money with a single organisation is very high risk. If the organisation goes under, the investment could become worthless.

The modern way of investing is to split your investment across many different companies. That way, if one or two companies go under, that doesn't ruin your entire investment portfolio. The easiest way of doing this is to invest in a standard investment fund which splits its money across many different assets.

Unfortunately it may not be possible to just pull out. You need to understand exactly what he has invested in.

Keep_pedalling

SeeJayJensen said:

Hi! My grandfather has some investment in a private hospital. It's been about 3 years now or more and he hasn't received a correct dividend (?) some 1 or 2 years ago. He'd like to pull out because they aren't giving him what he was told to receive but the freebies that come with it will also be lost (like the checkups and whatnots) if he pulls out. Should he wait for at least wait for the 5th year to pull out? Also, if something happens to him *knock on wood* who is it transferrable: to my grandmother or to his children? And if it's his children, is it going to the eldest?
Looking forward to hearing from you!

The age of your children is not relevant when it comes to inheritance, primogeniture was abolished in 1925. The exception to this is hereditary titles. If your GF does not have a will he should make one.

As for the bond, I think he will find it difficult to withdraw, and if dividends are not being paid then he may find repayment of the capital on maturity may not be met in full.

dunstonh

I have a bad feeling about this.

These types of investments are non-standard and extremely high risk and have a very high failure rate.  Some are just outright scams.     We have very little to go on based on what you have said but my first reaction would be to be on guard and look into it more to see if it is a genuine case or one of the dodgy ones.

barnstar2077

I hope he has not invested in some kind of scam.  Not paying the correct dividend three years in a row is not a good sign.

SeeJayJensen

Linton said:

 More info needed. What is the investment? It could be shares perhaps in a private company or a loan, perhaps some sort of bond or something else entirely. Do you have any details of the company or hospital. A name or a link to a website would help.

Sorry i dont know the name of the hospital. I think it's shares. he's always invited to shareholders parties every Christmas time.

SeeJayJensen

kuratowski said:

When your grandfather dies, the assets should be distributed as laid out in his will.

If he hasn't written a will, then the rules of intestacy would apply: 

what if it's a verbal will that he's announced to all his children? does that count?

SeeJayJensen

Keep_pedalling said:

SeeJayJensen said:

Hi! My grandfather has some investment in a private hospital. It's been about 3 years now or more and he hasn't received a correct dividend (?) some 1 or 2 years ago. He'd like to pull out because they aren't giving him what he was told to receive but the freebies that come with it will also be lost (like the checkups and whatnots) if he pulls out. Should he wait for at least wait for the 5th year to pull out? Also, if something happens to him *knock on wood* who is it transferrable: to my grandmother or to his children? And if it's his children, is it going to the eldest?
Looking forward to hearing from you!

The age of your children is not relevant when it comes to inheritance, primogeniture was abolished in 1925. The exception to this is hereditary titles. If your GF does not have a will he should make one.

As for the bond, I think he will find it difficult to withdraw, and if dividends are not being paid then he may find repayment of the capital on maturity may not be met in full.

so it's better to just wait for the correct dividend to paid to him?
about the will, my mom (my grandfather's 2nd) and I are telling him (and my grandmother) to create wills and just update it every few or so years. so far, we've only arrived at verbal will - and it's only the properties and not the money.

SeeJayJensen

@barnstar2077 @dunstonh I don't think that it's a scam? because he's witness how the hospital was built (he invested in the hospital before it even opened). also, he's received the necessary perks listed in the contract and more. <-- is this their way of making up that they haven't paid him the correct dividend?