A private limited company has 100 shares split 20 to wife 20 to husband and 60 to their son. The wife died on 8th January 2017 and in her will leaves her shares to the son upon her death, do the shares become his as from the date of death? This question arises as a dividend was paid later that year (covering the company year end to 31 March 2017) and the rest of the family siblings are trying to claim that the wifes dividend should go into the funds available in the estate for distribution as per her will. This issue has arisen as the now retired accountant forgot to do a share transfer to the son. Ther new accountant has picked up on this and recently complted the transfer as per the request in the will.
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From the moment of death the shares come under the control of the administrator or Exec. The Exec receives any dividends due and passes them to the beneficiaries when the administration is finalised. Where, as in this case, the dividend is paid after death, but relates to a period before death, the dividend is apportioned. (Unless the will states otherwise)
I am afraid I disagree.
This is a specific bequest and as such is held on a bare trust from the date of death. The total income is paid in full to the beneficiary.
The important date for IHT is the date the dividend went ex div.