Want to know how to transfer shares to a relative? From the point of view of the law, securities are movable property. Like real estate, money, car or anything, you can sell them or buy them, donate, leave in inheritance and even transfer to trust management. The question is how to do it.
Stocks are a good tool for accumulating a personal “retirement fund.” Unlike funds held, for example, in the FIU, they will be inherited by immediate family members.
Inheritance on shares can be obtained by will or by law. In the first case, the property will be received by a person registered in the will. In the second – the closest relative.
The question is what to do when a shareholder dies? After the death of the shareholder, the heir becomes a shareholder himself. This is not automatic:
- The heir turns to the notary;
- The notary receives an extract from the register on the shareholder’s account, specifying the name and the last place of residence;
- The notary requests data on the market value of the shares (provide them only if the securities are traded on the stock exchange);
- The registrar blocks the deceased’s personal account.
- The heir issues a document confirming the right to inherit shares;
- the registrar opens a new personal account and transfers the shares in the heir’s name.
- If the heir is less than 14 years old, his interests are represented by the official guardian (parent). If there are no heirs at all, the shares go to the state.
On the other hand, if there are many heirs, the shares can be divided between the heirs by shares. Shares of new owners can dispose, including, to sell – to other heirs or, if they refuse, to third parties.
How do I know if the deceased has shares and how to transfer shares to a relative? It’s simple: act through a notary. He will send inquiries to registrars, banks, to the tax office. In the tax to learn about shares and bank deposits is the easiest: here “accumulate” information about income.
Making an inheritance requires a lot of time and cost (at least for the services of a lawyer), and it is much easier to transfer shares within the framework of the contract of sale or gift. Making a sale transaction is possible if the shares are not listed on the exchange and are in your hands. If you trade on the stock exchange, you will not be able to make such a deal.
With the gift agreement, everything is a little easier. But the costs can still be. In this case, the person receiving the property must pay tax (13%).
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Trust may be required if you are unable to handle securities, but for some reason you cannot or do not want to sell them. Often the shares are run by the next of kin. On the basis of the contract, they can work with the broker on behalf of the owner, as well as sell and buy shares directly.
It is better to take care of the transfer of shares to future heirs in advance. At a minimum, notify your relatives that you have shares. In this case, the process of reissuing will be easier and faster.
I hope! Now you know what to do when a shareholder dies.