Mr Eastwood
Registered User
- Messages
- 27
If I was the Executor, I'd want to get the agreement of the beneficiaries to such an arrangement. If they disagree and the shares cannot be immediately sold, then they need to be split 50:50. Shares can go down in value as well as up. The Executor does not want to be open a claim by a beneficiary for loss of value. The beneficiaries might want independent advice before taking on or releasing more than half the shares. And yes, the company will split or transfer the shares as the Executor requests. I was dealing with an Estate recently where there were about 10 publicly quoted shareholdings, all certificated and one of the seven beneficiaries wanted to take shares. A pain in the butt, so I said I was selling them all and he could buy what he wanted later with his share of the proceeds after taxOf course I absolutely agree that the executor must distribute the estate as per the will, and indeed the cash value as well as the share value could change also.
Purely for the purpose of educating myself as a future executer, (as I presently have no idea) can I ask the following hypothetical but simpler question.
A widower whose entire estate at the time of death consists of, cash of €90,000 and company shares of €10,000 wishes to divide his estate 50/50 among his 2 children. Will the executer be allowed to give one sibling €50,000 and the other all the shares + €40,000. Also, will the company transfer all the shared to one sibling, or will they be bound to split them 50/50
Just to be clear, and this is a general point not specific to your situation, the executor does not need the agreement of any or all beneficiaries to proceed with the distribution of the estate. Nice to have and avoids future resentments or conflicts but the key responsibilities of the executor are to gather and protect the value in the real and personal assets of the estate, pay outstanding creditors, including the tax-man and pay the beneficiaries as per the wishes expressed in the will. Relationships or the counselling thereof don't figure.whatever system will be used to distribute the estate would be discussed and agreed with all beneficiaries.
After googling “power of appropriation”. I understand that now, useful information. Thanks GordonIsn’t the “power of appropriation” normal enough in the context of administering an estate?
Fine of specific people have been bequeathed specific assets, but where an estate is crudely split 50:50, my understanding is that what normally takes place is that the executor(s) can use their commonsense.
Thanks Peanuts20 The widower in question got a leaflet outlining in good detail the share redemption programme. It states strangely, that income tax at marginal rate is payable on redeemed shares, not CGT. If the shares are inherited there will be no income or CGT payable by the beneficiaries as will be well below the thresholdKerry Co-op were doing a share redemption programme before Christmas. It has ended but it could be worth reaching out to the Co-Op to see if they're doing it again at some stage in the future
Yes, this is a problem with Kerry Co-op shares. The share redemption was a deemed distribution so taxed at marginal rate.It states strangely, that income tax at marginal rate is payable on redeemed shares, not CGT.
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