inheritance Tax on shares - Simple Question

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Will try to keep this as simple as possible

i am the executor of a will for a relative whom has passed away and left myself and three other people a £300k house, £200k money and it turns out they had £2.15m shares in a company on the london stock exchange. total  value of £2.65 million

Im told by a solicitor that the first £650,000 is tax free due to the fact the relatives partner who also passed away 10 years prior didnt use any of her allowance.

Is there a best practice when it comes to inheritance tax on shares?. is it best to sell them and split the money 4 ways or split the shares

TIA

 

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By FactChecker
10th Feb 2024 18:13

Well, for once the response is not "find an accountant" ... "but find a solicitor, or at least a professional executor"!

There's a lot to 'unpack' from your limited info (and no doubt a lot of other facts will emerge as the estate is administered) - for (random) starters:
* "the relatives partner who also passed away 10 years prior" - it'll be important to ascertain their marital status / actual date of her death / whether her will (or intestate) resulted in any disbursements / etc
* "a £300k house, £200k money and it turns out they had £2.15m shares in a company on the london stock exchange" - but no mention of any liabilities?

And so to: "Is there a best practice when it comes to inheritance tax on shares?"
That's easy - No (not in the sense your suggesting).

But before you try to decide whether "to sell them and split the money 4 ways or split the shares" ... are you aware of the timing factors (and the presumably obvious fact that quoted shares don't have a fixed value)?

As I said, these are not accounting questions (some bits are tax-related and some may need an IFA's input, but a lot is about complying with the rules to achieve grant of probate) ... so find out who is/are the Executor(s) stated in the Will - and talk to them.

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Replying to FactChecker:
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By jonnyskea
10th Feb 2024 18:19

this is all new to me, so i guess i wasn't sure which one i needed

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By FactChecker
10th Feb 2024 18:31

Just noticed that you said you're the Executor (hopefully not the only one).

If you are the only one then it sounds like you need professional guidance - which takes you back full circle to my earlier post. This is NOT a size of Estate on which a beginner should practice DiY'ing ... and your co-beneficiaries (who may well be your best friends right now) can turn litigious if someone later whispers in their ear that you (as an unqualified person) got something wrong!

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By jonnyskea
10th Feb 2024 18:46

Yeah I'm the only one, definitely don't want to take this on myself, so will seek professional help, appreciate your advice

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By Cylhia66
10th Feb 2024 20:34

Simple question - Implies... super easy to answer. How cheeky!

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By Postingcomments
11th Feb 2024 15:15

When clients declare their question is simple, I hear it as code for, "I'm not paying for this."

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By Cylhia66
11th Feb 2024 15:24

The sheer arrogance of it!

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By Justin Bryant
11th Feb 2024 11:45

By transferring them the shares you'll save them 0.5% SDRT if they would want to have the shares anyway (like with a house and SDLT).

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