What Happens to Shares When Someone Dies?

Shares do not disappear when their owner dies. They become part of the deceased person's estate and must be dealt with by the legally authorised personal representative.

The holding may initially remain in the deceased name

The registry or CHESS record can remain unchanged until the executor or administrator supplies the required documents. Dividends may continue to be declared, although payments can be held if bank or address details are no longer valid.

The executor identifies and values the asset

The estate inventory should record each company, quantity, sponsorship type, registry, value at the relevant date and any unpaid dividends. Historical statements and tax records are helpful.

Transmission comes before some transactions

A registry or broker may require a transmission process recognising the executor or administrator before the shares can be sold or transferred. The process and thresholds vary.

The shares can be sold or transferred

Depending on the will and estate administration, the shares may be sold for cash, transferred to a beneficiary, divided among beneficiaries or dealt with under a specific gift.

Can they be donated?

Potentially, where the will authorises it or the executor otherwise has proper legal authority. Estate donations should be supported by legal and tax advice and careful records.

Ready to take the next step?

Found a small estate holding that may be suitable for charity? We can explain the donation mechanics once the estate's authority has been confirmed.

General Information Disclaimer

This article contains general information only and does not constitute financial, legal or tax advice. Requirements vary between holdings, brokers, registries and personal circumstances. Consider obtaining advice from an appropriately qualified professional.