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  • FIRST POST
    • jill36
    • By jill36 9th Jul 18, 12:32 PM
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    jill36
    Dividend on shares when someone dies
    • #1
    • 9th Jul 18, 12:32 PM
    Dividend on shares when someone dies 9th Jul 18 at 12:32 PM
    Hi hoping someone can help me
    Recently my mother died (expected) I have not informed her bank yet. (Only received death certs on Friday)

    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.

    What would happen to the dividends if the nominated account is frozen.

    Could I legally leave Mums account open while I am waiting probate documents.
    Last edited by jill36; 09-07-2018 at 1:10 PM. Reason: Additional info




Page 1
    • Keep pedalling
    • By Keep pedalling 9th Jul 18, 12:56 PM
    • 5,199 Posts
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    Keep pedalling
    • #2
    • 9th Jul 18, 12:56 PM
    • #2
    • 9th Jul 18, 12:56 PM
    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
    • By jill36 9th Jul 18, 1:07 PM
    • 888 Posts
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    jill36
    • #3
    • 9th Jul 18, 1:07 PM
    • #3
    • 9th Jul 18, 1:07 PM
    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.




    • Keep pedalling
    • By Keep pedalling 9th Jul 18, 1:29 PM
    • 5,199 Posts
    • 5,805 Thanks
    Keep pedalling
    • #4
    • 9th Jul 18, 1:29 PM
    • #4
    • 9th Jul 18, 1:29 PM
    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.
    Originally posted by jill36
    There should be no DDs leaving the account, you have a duty to inform the bank and get the account closed.
    • Dox
    • By Dox 9th Jul 18, 2:27 PM
    • 744 Posts
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    Dox
    • #5
    • 9th Jul 18, 2:27 PM
    • #5
    • 9th Jul 18, 2:27 PM
    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.
    Originally posted by jill36
    Just a thought...have you told the insurers?
    • Flugelhorn
    • By Flugelhorn 9th Jul 18, 3:34 PM
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    Flugelhorn
    • #6
    • 9th Jul 18, 3:34 PM
    • #6
    • 9th Jul 18, 3:34 PM
    Tell the insurers promptly.

    Re the gas and electric - tell the companies and they will only send a bill when you have probate
    • Larac
    • By Larac 9th Jul 18, 5:17 PM
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    Larac
    • #7
    • 9th Jul 18, 5:17 PM
    • #7
    • 9th Jul 18, 5:17 PM
    Personally I would get the account frozen as quick as possible. It is easy to lose track of DD that go out - we had forgotten about the CH fees following my Mum's death - it would have gone out but failed as there was insufficient funds. (My brother had thought similarly that only a few DD's were due out)
    • nom de plume
    • By nom de plume 10th Jul 18, 11:01 AM
    • 699 Posts
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    nom de plume
    • #8
    • 10th Jul 18, 11:01 AM
    • #8
    • 10th Jul 18, 11:01 AM

    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.
    Originally posted by jill36

    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.
    • LobsterMemory
    • By LobsterMemory 10th Jul 18, 1:42 PM
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    LobsterMemory
    • #9
    • 10th Jul 18, 1:42 PM
    • #9
    • 10th Jul 18, 1:42 PM
    I am quietly confident that any dividends from the shares paid after date of death would fall outside of the estate .
    Originally posted by nom de plume
    Not if they went ex-dividend before date of death

    Anyway, assuming OP takes the advice of blocking the bank account, it may still be possible to pay in dividends in the deceased's name into that account. Certainly, NatWest allows it.

    Otherwise, once the share registrars are informed, they will hold on to any due dividends which they will then release to the executors after they receive Grant of Probate
    • relaxtwotribes
    • By relaxtwotribes 10th Jul 18, 4:41 PM
    • 253 Posts
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    relaxtwotribes
    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%.
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