Inheritance Without Will

[rishabwadera]

If a shareholder dies without a will are the shares automatically passed to his children?

[EDDIE51]

They will form part of the estate and if there is no will the law of intestacy will apply. Where are you as the law is different in Scotland than in England and Wales.

[EDDIE51]

Details here
http://www.companylawclub.co.uk/what-happens-if-a-shareholder-dies

[Buenchico]

As Eddie says, it's the whole of the deceased person's estate which is relevant.

If they were survived by a spouse or civil partner everything goes to the spouse unless the value of the estate exceeds a quarter of a million pounds. (Then, if there are children of the deceased person, they also get a share).

If there's no surviving spouse or civil partner the children get everything.

https://www.kingstonsmith.co.uk/wp-content/uploads/2016/06/Intestacy-Rules-flowchart-if-you-live-in-england-1.pdf

Note that with large estates (of over £325,000, or £650,000 if the deceased person had earlier received the whole of the estate of a spouse or civil partner who died before him/her) there's Inheritance Tax to be paid. In practice that might mean that some of the shares would need to be sold.

[Barmaid]

It actually depends on the type of shares and whether there is a shareholder agreement.

[EDDIE51]

I was thinking the shares got cashed in and the money added to the estate, but I may well be wrong.

[ToraToraTora]

intestacy rules apply here is the flow chart. eddie no assets are liquidated as a matter of course, inheritors may choose to sell assets in order to pay IHT for example.
http://www.mindatrest.co.uk/images/lawofIntestacy.png

[nrilegalservices]

No. The shares become a part of the estate. They may have to be sold in order to settle the debts of the estate. If they are still a part of the estate when it comes time to distribute them, they can be transferred to the children.

[Barmaid]

If they are shares in a public company I absolutely agree that they will form part of the estate.

However if they are private company shares it might be quite different. We need more info.

[maggiebee]

I live in Scotland and I inherited my father's stocks and shares in two major companies. My father's solicitor dealt with the change of name etc but it appears to have been fairly straightforward. I still have these.

[Peter Pedant]

thanks Barmaid

I was wondering about a private company and whether there could be a condition about the shares on death being er recycled amongst the others