Dividend on shares when someone dies

You should be more concerned at payments going out of the account, do not delay informing the bank.

Any dividends payments will be sorted by the share registry when you either transfer the shares to the beneficiaries or sell them.

Not being a fan of holding individual shares I would do the latter.

jill36 wrote: »

There is money in her account approx £6000. Only £60 worth of DD is leaving her account a month. Standing charge gas and electricity and home insurance. Council tax was stopped in May when she went into a care home and left her property empty.

There should be no DDs leaving the account, you have a duty to inform the bank and get the account closed.

Tell the insurers promptly.

Re the gas and electric - tell the companies and they will only send a bill when you have probate

jill36 wrote: »

She has quite a large share portfolio ( I am the beneficiary) and I am worried about the dividends she would have received if the bank account is closed.

I am quietly confident that any dividends from the shares paid after date of death would fall outside of the estate and go direct to you assuming the shares are left specifically to you.



I say quietly confident as I am comparing it with income from a rental property that had been specifically bequethed and upon which I received appropriate professional advice.

I would expect that the registrars of the companies will freeze any future dividends and pay them to the executors once probate has been shown to them. Please note that Capita seeks to charge a fee for issuing cheques to executors. IIRC that charge is £60 or £80 per dividend, depending upon the amount of the dividend (why the charge is larger for a larger amount cheque is beyond me!). Outrageous; they haven't issued the dividends in the first place, so to seek such a large fee just for issuing a cheque that is rightfully due to the executors is a nonsense. If you come across this problem, then simply write to the company secretary of each company explaining that Capita is not distributing the dividend. You should find that the company secretary then bends the ear of Capita and your dividend will miraculously arrive.

On a separate note your mother will have had her own dividend tax allowance of £2,000 for this tax year. This will form part of her tax return for the period from 6th April until date of death. The executors will have no dividend tax allowance for the period from the date of death until 5th April 2019, so all dividends (eventually) received in that period will bear a dividend tax of 7.5%.