What you need to know when Administering an Estate.
Common Problems with Estate Administration
Issue: Selling or Transferring shares after the ex-dividend or ex-entitlement date
Closing bank accounts before dividends are paid. Often a dividend statement will be received, however this is not reconciled with the bank account as being received.
What should you do in this scenario?
- Advise broker or share registry of new bank details
- Claim the funds from the share registry by advising new bank details [Form]
- Check Unclaimed Money [Link]
Receiving a small number of shares via a Dividend Re-investment Plan (DRP) after shares have been either sold or transferred to beneficiaries
- Use the same process to Sell or Transfer
- Switch off DRP participation
Issue: Companies may trade “ex-entitlement” to a company restructure, capital raising, or other entitlement.
- Companies often announce an entitlement to participate in a capital raising. This may require consideration from the shareholder (or Executor) to participate or not. Examples include Share Purchase Plans (SPP) or Rights issue. How can an Estate take up, or sell the entitlement? Where is the paperwork?
- This may see a share consolidation or share split - changing the number of shares held.
- A company may spin-off a subsidiary by way of entitlement (eg. Woolworths/Endeavour Group). This leads to new holdings which need to be administered, bank accounts and Tax File Numbers provided.
- An increasing number of takeovers occur via a Scheme of Arrangement (Court ordered takeover created by a shareholder vote). This leads to payment being made to shareholders for their shares, and often via cheques being mailed to the Registered Address.
'Estate Share Transactions Simplified'
Ord Minnett understands the complexity that can surround the sale or transfer of Deceased Estate shares. It is for this reason we provide a 'Estate Share Transactions - User Guide', designed as an aid to help simplify Estate Share Transactions.
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'Simplifying Deceased Estate Transactions'
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