Executor - Sale of Shares on the Stock Market

0765peter

I am Executor of my late father’s Will & Estate. I received the Grant of Probate last week.

The Shares which are all ISA wrapped he had dropped 14.64% in the last week following Trumps Tariffs so I think it is not the right time to get these sold and I should wait to see if the market picks up taking my duty seriously to get the best return for all beneficiaries.

My problem is that one of the Beneficiaries is due 36% and would like the money as soon as possible and is not prepared to wait as I suggest.

My question is can I ask the 5 different share companies to sell her 36% when she wants which will allow them to be paid off and the remaining 64% remain in the market and hopefully they pick up and can be sold at a later time to benefit the other beneficiaries.

My father would not personally want us to sell at a loss as he made good investments over the years but the last week has incurred a substantial loss that I would like to think will improve in time as I am aware that we have 3 years in the Probate rules before they have to be sold.

Please can I ask you only answer if you know the rules and that part of the shares can be sold or if they all need to be sold at the same time which as mentioned above are all ISA wrapped.

Thank you.

tls123

Now you have a grant of probate you can do a partial sale. Assets in an isa can be held for 3 years 1day from date of death then they lose isa status see government website for isa riules on death of a holder. You would just need to make it clear to the isa provider the amount you are selling in order to pay on of the beneficiaries do all the other beneficiaries understand risk with the investment in terms of values fluctuating and not guaranteed if the others know you are releasing some early to a beneficiary are they happy to wait for theirs? I might have misunderstood your wording if they are 5 different companies are you saying it’s in 1 isa as a wrapper in which case you just instruct the isa provider. 

doodling

Hi,

Does the ISA make up the main portion of the estate assets?  Where are you with liquidating the rest of the assets and paying the debts?

If liquidating the ISA is the last thing you need to do then it isn't reasonable to delay unless all the beneficiaries agree.

I would be very wary of part liquidating the ISA for just one beneficiary.  If the value of the amount that remains invested increases again then I can see the impatient beneficiary claiming that the distribution was unfair.

Whilst I accept that markets are quite volatile at the moment, if you're slick with the process then the beneficiaries who want to stay invested shouldn't be out of the market for too long.  Have you looked at how long the beneficiaries would be out of the market for?

Your job is to get the assets to the beneficiaries, not to run their investments for them.  What would you be telling the beneficiaries if the value of the ISA dropped over the next few years and your delay cost them all money?

(And yes, if this was a house sale I might be saying something slightly different, but it isn't a house sale).

Keep_pedalling

You risk further falls with the volatility created by mad king trump and it sounds like we are talking individual shares rather than funds so very high risk. Yes you have a duty to try to achieve the best for the beneficiaries but you also have a duty not to take high risks with estate assets. I would liquidate and distribute the cash ASAP then they call all make their own choices and reinvest in the market if they so chose. 

Linton

Agree with selling shares now.  Assuming they will command a better price in the near future is a risk and it is not appropriate to take risks with beneficiaries' assets.

boingy

I also agree with selling the shares now and distributing the proceeds as per the will. It's not for the executor to speculate. 

probate_slave

Just to add, an IHT35 claim for loss relief on overpayment of IHT once you have sold the shares (assuming they are qualifying) will maximise the value of the estate.

Jowwie

Are you sure there are no debts lurking for the estate or anyone who might contest the will? If you google you will find guidance that you should wait some months after probate before distributing anything, regardless of when you actually sell these shares.

SimonWebs

Fair enough sell the shares now and secure the proceeds.

I would not be in a rush to pay the person who want their money now.

What happens when a debt turns up in three months.

I think response will be I spent that I do not have the money to repay you.

Best to wait, that is my 5 pence worth. 

Hoenir

0765peter said:

I should wait to see if the market picks up taking my duty seriously to get the best return for all beneficiaries.

Your legal duty is to wind up the Estate. Failure to do so in a timely manner could result in you being personally responsible for further losses should the arise. 

madbadrob

I dont think you would be wise to keep the shares in the ISA.  The fact that the share market is volatile means the price could go even lower.  This could lead to the beneficiaries saying but they were worth xxx and now they are worth xxx so you owe us xxxx.  By settling now you are getting the best price for your beneficiaries and if they then want to risk their shares in the market they can do so.

All that said what does the will actually say in relation to the shares

Rob