Selling Certified Share Certifcate after Probate

masonic

chris_k said:

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. 

The typical low cost dealing rates of £5-£12.50 per trade are on electronic trades of shares already transferred into a nominee account in the beneficial interest of the person instructing the broker. HL used to charge about half the rate of Equiniti, but this was by no means cost effective compared to electronic dealing. Placing deals using paper share certificates is a niche, expensive, activity, which is dying out, as you have found. Frankly, I don't think there is any chance of HL bringing it back, their website now routes customers to deposit certs into an account in their name and deal electronically. This is the route most discount brokers would be positioned to help with.

chris_k

I agree masonic. I note that the EU have stated share certificates will be gone by 2025. I don't know if the UK will follow. It is definitley time to move paper share certificates into electronic form.