5 Comments Wills, probate, letters of administration, powers of attorney
The will does not specify what is to be done with the shares. The beneficiaries are concerned mostly with minimising capital gains tax. Initially they instructed me not to have the solicitor sell them on our behalf (I am one of the beneficiaries). I was under the impression that in order for me to sell them, I would first have to have them transferred into our names. One of the beneficiaries subsequently told me they did not want that either. On seeking clarification as to our options the solicitor repeated her offer to sell the shares and keep them in the estate. My question is, can I do that myself?
Thanks, I have looked into it further and discovered I can indeed sell the shares as executor and have the broker make the cheque out to the estate which I can then bank into the estate account..AlI need is a copy of the probate document, or the will and death certificate. Just in case anyone has the same question, you can sell the shares without having them transferred to the beneficiaries' names, and you do not need a solicitor to do it.
The choice seems to be transfer the shares directly into the names of the beneficiaries on a pro rata basis and then it is the decision of each beneficiary if they are kept or sold.
If the shares are kept and transferred to each beneficiary, then it is my understanding that any capital gains or losses are preserved and continue to accrue to the beneficiary to whom the shares are transferred.
If the shares are to be sold by agreement or otherwise with the beneficiaries, then the proceeds of the sale becomes part of the estate and capital gains or losses are triggered. As such the estate may incur a capital gain or loss, and may result in CGT to be paid or recovered from the ATO.
It will depend on the amounts of gain or loss and the amount of income etc that the deceased was receiving and if the deceased was filing a tax return.
I recommend that you get some advice from an accountant. This is a financial matter and not a legal issue. I would suggest.
Either way, get some financial advice before making a decision.