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can executor transfer a stock prior to probate?

can executor transfer a stock prior to the issue of the grant in UK?

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Hello, my husband is a director of a limited company in the UK. He has 50% of the company (1 share). The other director has died and the probate will take a long time. The company needs a bridging loan. The lenders want my husband to have 100% (2 shares) of the company in order to get the loan. My question is can the executor transfer the shares with J30 form until the loan is repaid and then get the shares back with J30 form again? The shares are ordinary and the company articles are standard. 

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By Cloudcounter
28th Jan 2019 19:49

You need a legal forum, not one for accountants.

FWIW, I doubt it

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By Accountant A
28th Jan 2019 20:13

Will your husband inherit the shares under the deceased's will? If not, pretending that he owns the shares in order to obtain funding could be misconstrued.

The advice from Cloudcounter sounds very sensible.

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Hallerud at Easter
By DJKL
28th Jan 2019 21:18

Other question is why should executor pass to your husband, is your husband connected with deceased, are there market value issues re tax, and what would be position of executor if he/she agreed to transaction and your husband refused to return shares; how is executor protected?

Notwithstanding executor will first need legal capacity to intromit with the shares to act and will likely need to consider wishes of the beneficiaries under the will re so acting.

I think there are legal and tax issues that could be lurking within such an arrangement and if I were the executor I would be taking advice before doing anything with the shares.

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By Tax Dragon
29th Jan 2019 06:29

The wrong person is asking the wrong question in the wrong forum.

Don't worry, others have done that before.

But I'd go back to the lender. Or rather, I'd suggest that your husband went back - or tried another. I see little.logic in the requirement you relay - unless you have that wrong too.

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By bernard michael
29th Jan 2019 10:18

Is your husband the executor ?

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RLI
By lionofludesch
29th Jan 2019 10:53

No idea why the OP didn't think that "Who inherits the shares?" was an important bit of information.

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