Selling shares in an Estate

British shareholders can end up owning foreign assets such as shares more easily than you might think. A shareholder might have worked for a foreign multinational, or lived for a while in a foreign country and acquired assets while there. Or they may have held on to shares subject to corporate actions, like stock splits, spinoffs, delisting’s from the London Stock Exchange, and so on, which could lead their shareholding to transform from a UK-listed stock to one listed solely in a foreign country, like the USA, Australia, Hong Kong, for example.

The processes and culture of many foreign share registrars or transfer agents can differ widely from those in the United Kingdom. Transfer agents in the USA might continue to send information about the shareholding to an address they have on file, which could be years out of date. We know it’s not uncommon for an elderly shareholder with failing health to go through multiple changes of address in the closing years of their life, so that by the time the estate representatives are involved, critical information about shares is being sent to a property that was sold years ago.

There may also be old paper share certificates, which may not show the correct, current position. this can lead to uncertainty, when a shareholder dies, about what exactly they did own. Surprisingly few countries around the world have moved to a completely paperless or ‘scripless’ share mechanism. Most countries have some form of share certificate system still in use.

Everything about dealing with foreign share registrars and transfer agents can be alien and frustrating. Starting from the language used (such as ‘decedent’ for the Deceased in the USA, and references to procedures largely unknown to Executors based in the UK, such as the Medallion Guarantee stamp and escheatment of assets), to the variable quantity and quality of information made available to “third parties”, due to the strict personal security and privacy restrictions to which registrars or agents are subject in their country of operation: the process can be draining to Executors unused to such involved processes. They may find it hard to understand why they have been denied meaningful information about the nature of the assets, and what to do about them.

Finders International can help. To get a bespoke quote tailored to your requirements, please contact us using the form at the bottom of this page.

Many shareholdings that were once listed on the London Stock Exchange are now listed in the USA, or merged with, or were acquired by, US Corporations, e.g. Keurig Dr Pepper, Inc, Kraft Heinz Company, Mondelez International and CRH plc, to name just a few.

Selling US Shares, whether during probate or in other circumstances, can involve various complexities. Understanding and navigating these complexities is crucial to ensure a smooth and legally compliant process.