Selling Certified Share Certifcate after Probate

chris_k

HI, I am struggling to find a broker who will sell UK shares in paper form with me as the Executor. We have been Granted Probate. Due to the drop in the stock market we want to sell them as Executor in the deceased name so we can claim back some of the Inheritance Tax paid based on the valuation at date of death and the reduced value.Equiniti, the registrar want to charge an uncapped 1.9% fee. I am looking for a broker who will deal. I have tried ii, HL AJ Bell and some others without luck.

JGB1955

Try X-O.co.uk - Execution Only Share Dealing    You can transfer your paper shares into a nominee account, using a CREST form.

chris_k

Thank you for the reply JGB. I tried another company owned by Jarvis Investment Management Ltd, who own X-O, and they said they couldn't deal for an Executor.

masonic

You will need to transfer the share certificate into your name using a stock transfer form before you can transfer into a nominee account in your name. There is normally not a charge for the transfer of ownership on the share certificate.

chris_k

Thank you masonic for your reply. I have looked at that but my understanding is I can't then claim the inheritance tax back on the reduction in value on the date of sale compared to the date of death.

masonic

chris_k said:

Thank you masonic for your reply. I have looked at that but my understanding is I can't then claim the inheritance tax back on the reduction in value on the date of sale compared to the date of death.

If that is the case then you may have to take the hit with the 1.9% fee, if this works out the lower of the two sums.

chris_k

Reaper said:

If you want the simplest (though not cheapest) way to sell then have a look at www.sellmysharecertificates.com
It's operated by Jarvis

Thank you Reaper. I spoke to Jarvis and they won’t deal for an Executor

chris_k

masonic said:

chris_k said:

Thank you masonic for your reply. I have looked at that but my understanding is I can't then claim the inheritance tax back on the reduction in value on the date of sale compared to the date of death.

If that is the case then you may have to take the hit with the 1.9% fee, if this works out the lower of the two sums.

Thank you Masonic. That is our fall back position but it is going to cost a lot compared to normal dealing charges. The inheritance tax we will get back will though be worth more so I can’t find a broker this is what I will need to do. I have also sent a message to Hargreaves Lansdown when they were interviewed stating brokers would deal for the Executor when a shareholder passed away. I am amazed how much Equiniti, the Registrar, charge for their services associated with the death of the shareholder. 

masonic

chris_k said:

masonic said:

chris_k said:

Thank you masonic for your reply. I have looked at that but my understanding is I can't then claim the inheritance tax back on the reduction in value on the date of sale compared to the date of death.

If that is the case then you may have to take the hit with the 1.9% fee, if this works out the lower of the two sums.

Thank you Masonic. That is our fall back position but it is going to cost a lot compared to normal dealing charges. The inheritance tax we will get back will though be worth more so I can’t find a broker this is what I will need to do. I have also sent a message to Hargreaves Lansdown when they were interviewed stating brokers would deal for the Executor when a shareholder passed away. I am amazed how much Equiniti, the Registrar, charge for their services associated with the death of the shareholder. 

Is the deceased a HL customer? If so then you might have a chance, although "would deal with the Executor" would normally be taken to mean regarding investments the broker already holds for the shareholder.

Your problem is you are trying to transfer shares into an account in your name, when someone else is named as the owner of the shares. Complicating the issue is (a) the estate is subject to IHT and (b) the shares have recently fallen in value. This is quite an uncommon scenario.

kipsterno1

I recently went through the same process with Equiniti after my father passed away. Like you I checked all other option but they all required a name change which took them outside the estate and cost an arm and leg. In the end we just used Equiniti but read the form carefully. If you do the notificated (send them the grant of probate) at the same time as you cashin the certificates there is a charge of £50 IIRC. If you notify them you have probate and wait for them to acknowledge they have updated the records then that extra fee does not apply. It will delay the sale for a week or so.

chris_k

masonic said:

chris_k said:

masonic said:

chris_k said:

Thank you masonic for your reply. I have looked at that but my understanding is I can't then claim the inheritance tax back on the reduction in value on the date of sale compared to the date of death.

If that is the case then you may have to take the hit with the 1.9% fee, if this works out the lower of the two sums.

Thank you Masonic. That is our fall back position but it is going to cost a lot compared to normal dealing charges. The inheritance tax we will get back will though be worth more so I can’t find a broker this is what I will need to do. I have also sent a message to Hargreaves Lansdown when they were interviewed stating brokers would deal for the Executor when a shareholder passed away. I am amazed how much Equiniti, the Registrar, charge for their services associated with the death of the shareholder. 

Is the deceased a HL customer? If so then you might have a chance, although "would deal with the Executor" would normally be taken to mean regarding investments the broker already holds for the shareholder.

Your problem is you are trying to transfer shares into an account in your name, when someone else is named as the owner of the shares. Complicating the issue is (a) the estate is subject to IHT and (b) the shares have recently fallen in value. This is quite an uncommon scenario.

The deceased is not an HL customer. I am not trying to transfer shares into an account in my name, only sell them as an Executor. I can’t see the difference of selling shares in paper form compared to selling as an Executor when they are in a nominee account. I noted in lockdown HL would not trade certified shares. There are articles which HL have been interviewed who say a sale of certified shares is possible but I have just had a message back from them that they suspended the service during Covid and are unsure if the service will be re-instated.