Stocks and Shares questions

HNITP_2024

Hello all, 

I hope you are all keeping well. I was wondering if I could get some help regarding stocks and shares form for IHT. Apologies in advance if they're obvious questions, I just want to try and avoid any errors. 

1. Market price per unit : I am getting a little confused with the value of shares - could someone please confirm these are correct - I have uploaded the screenshots. 
Shell : £19.71 per share
National Grid : £9.49 per share
Centrica : £1.49 per share


2. Dividend or interest due to date of death : How do I get this value? Going through my fathers stuff I can see a lot of cheques from these companies which were never cashed. If I was to call each company would they be able to tell me?

Thank you in advance. 

Keep_pedalling

First off you are correct to use the closing price of the day of death, but you should not be rounding down to the nearest penny. you round the totals down to the nearest pound. 

None of the shares were ex-div on that date so any dividends paid during the administration period do form part of his estate for IHT purposes and are classed as estate income.

You will need to add all those unclaimed divided cheques to IHT411, and get them paid to the estate from the share registry company. 

HNITP_2024

Keep_pedalling said:

First off you are correct to use the closing price of the day of death, but you should not be rounding down to the nearest penny. you round the totals down to the nearest pound. 

None of the shares were ex-div on that date so any dividends paid during the administration period do form part of his estate for IHT purposes and are classed as estate income.

You will need to add all those unclaimed divided cheques to IHT411, and get them paid to the estate from the share registry company. 

Thank you for getting back to me - so very helpful.

There is also some other shares which were worth £0.55 (55p) on the date of death. Would this be rounded down to £0 or rounded up to £1 each. 

So if I round all of them down to the nearest pound it would be as follows: 
Shell : £19 per share
National Grid : £9 per share
Centrica : £1 per share


Some of the cheques found are old -18 months plus, and I can't be sure that I have found each cheque - everything is so unorganised. Would the individual companies be able to see what was never cashed and send a cheque for everything that is owed up until now? My sibling and I (both executors) have a joint executor bank account in place for any bits to be paid into and to be declared.

Thanks again for your time, and sorry for silly questions. 

Keep_pedalling

HNITP_2024 said:

Keep_pedalling said:

First off you are correct to use the closing price of the day of death, but you should not be rounding down to the nearest penny. you round the totals down to the nearest pound. 

None of the shares were ex-div on that date so any dividends paid during the administration period do form part of his estate for IHT purposes and are classed as estate income.

You will need to add all those unclaimed divided cheques to IHT411, and get them paid to the estate from the share registry company. 

Thank you for getting back to me - so very helpful.

There is also some other shares which were worth £0.55 (55p) on the date of death. Would this be rounded down to £0 or rounded up to £1 each. 

So if I round all of them down to the nearest pound it would be as follows: 
Shell : £19 per share
National Grid : £9 per share
Centrica : £1 per share


Some of the cheques found are old -18 months plus, and I can't be sure that I have found each cheque - everything is so unorganised. Would the individual companies be able to see what was never cashed and send a cheque for everything that is owed up until now? My sibling and I (both executors) have a joint executor bank account in place for any bits to be paid into and to be declared.

Thanks again for your time, and sorry for silly questions. 

Sorry, I did not make my self very clear there, you only round down the total share ownership. For example 100 x Acme Ltd @ 155.5p per share = £155.50 would be declared at £155. 

As for the cheques, the share registry should have a record of all the unclaimed dividends, in theory going back decades. You will need to contact them to either transfer or sell the shares.

Jowwie

There could also be a charge for reissuing each of the dividend cheques. One of the estates I dealt with had years of uncashed small dividends. The charges were into the hundreds.

JGB1955

Jowwie said:

There could also be a charge for reissuing each of the dividend cheques. One of the estates I dealt with had years of uncashed small dividends. The charges were into the hundreds.

I had a similar issue with a € cheque that my late father had received for a Shell dividend.  Goodness knows why he opted for whichever of the B/A shares would have been simple. It was something less than £15.  The registrars started issuing me with warning notices about it, and how they were going to charge me for it.  Eventually, 3 years after his death, they agreed to my suggestion that the dividend should go to charity. Phew