Small shareholdings within estates can be tricky and time-consuming to resolve. Whilst larger holdings may be readily sold for the benefit of the estate, the value in small shareholdings can be far outweighed by the costs involved in lodging legal paperwork with the registrars and subsequent stockbroking commission.
Many estates will still hold physical share certificates which are now extremely difficult and expensive to sell. Even if such an asset is transferred to an executor, they are now in possession of a holding which would cost more to sell than it is worth. What is technically an asset is often in fact a liability, however the holding still has to be disposed of. The question is how best to do this for your client?
Solving problems and creating charitable outcomes
ShareGift can solve the problem of small shareholdings within estates, at zero cost. ShareGift (a registered charity, no. 1052686) specialises in accepting donations of shares and cash entitlements, regardless of value. Founded in 1996, ShareGift has now given over £42million to more than 3,300 UK registered charities.
ShareGift routinely assists solicitors and executors with share donations from estates, over 500 in the last year alone, with many more donating their shares directly to ShareGift via the share registrars or nominee companies. ShareGift can accept share certificates as well as shares and other securities held in corporate sponsored nominees and stockbroking accounts. These shares are transferred to ShareGift, amalgamated with other donated assets and sold when practicable. This creates a pool of funds which is then donated to other charities in the UK.
Streamlining paperwork and eliminating fees
Not only will ShareGift assist with preparing transfer paperwork, they also have a special arrangement with all the major registrars in the UK, whereby they can transfer shares even where the shares have been lost, providing the value of the shares does not exceed £100, removing the requirement for expensive and time-consuming replacement certificates. Where the value does exceed £100, ShareGift will prepare a request for the replacement certificate via a letter of indemnity and (as the value of the shares will outweigh the charges) cover the cost of the indemnity, meaning it remains a nil-cost exercise.
All types of shares and securities accepted
Providing a shareholding can be readily transferred, ShareGift will accept it. This includes unlisted stock and shares in administration and liquidation. ShareGift also accepts shares listed overseas, although in such cases it does require that the legal paperwork regarding the death and probate is lodged with the registrars overseas in the first instance.
Whilst these donations are made to the charity ShareGift, the executors can also have a say in how those funds are ultimately distributed charitably. ShareGift can give to any UK charity, subject to due diligence, and are giving to new charities almost every month. They ask all donors for charity suggestions, regardless of the value of the shares donated, and it is this information, together with the suggestions of corporate partners and independent research, which drives their charitable distributions.
Leaving a legacy of shares to ShareGift
Some estates also include ShareGift as part of their philanthropic legacy when donating larger shareholdings or portfolios of shares. As a registered charity, any shares transferred to ShareGift are of course exempt from UK Inheritance Tax and Capital Gains Tax. There are a number of reasons why this may be an attractive option:
- ShareGift can accept donations of any size regardless of value, meaning they can be the recipient of all shares within a portfolio, large and small
- ShareGift are experts in dealing with complicated investment instruments, both in the UK and overseas, and can assist with the transfer of the same
- ShareGift works closely with all of the UKs leading registrars, as well as many of the major nominee and stockbroking companies, which can ease the transfer process
- ShareGift benefits from free stockbroking and custodial services thank to the support of their partners
- ShareGift can act upon multiple charity suggestions and make appropriate donations, reducing costs to the estate in the process
- ShareGift does not fundraise and will only contact you in respect of the donation you or your client wishes to make
Such suggestions from an estate are typically made via a letter of wishes.
Corporate social responsibility (CSR)
Demonstrating good CSR is increasingly important to firms of all sizes. ShareGift is not only a practical way of showing tangible commitment CSR, it can save you and your clients time and money.
Further information and assistance
For more information about ShareGift visit their website www.sharegift.org or email help@sharegift.org
This article was submitted to be published by ShareGift. The views expressed in this article are those of the submitter and not those of Today’s Wills and Probate.
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