How Estatesearch’s Share Services Support Legal Teams During Estate Administration
Estatesearch provides HMRC compliant probate valuation, at date of death, of UK and International listed share holdings using the lower of the ‘quarter up’ method or mid-market prices.
With over 30 years’ experience, Sian leads a specialist team of four that works with solicitors across the UK to deliver efficient, cost-effective share valuations, as well as comprehensive sale and transfer services.
HMRC Compliant Share Valuation at Date of Death
Q: Why would a legal firm use share services?
SF: It really comes down to familiarity and frequency. My colleagues and I value shares day in, day out. While solicitors can contact the London Stock Exchange to obtain share prices, this can be both expensive and time-consuming, and it’s only part of the picture.
For HMRC compliance, there are two accepted methods for share valuation: the Quarter-Up calculation or the Mid-Market calculation. We perform these calculations daily, so the process is quick and accurate for us. However, for legal teams that only need to value shares occasionally, it naturally takes longer and leaves more room for error.
While it’s possible to source prices online, platforms such as Google typically provide only a single price. This makes it impossible to apply either of the HMRC-approved valuation methods required to accurately determine the value of shares at the date of death.
End-to-End Probate Share Services for Legal Professionals
Q: What does Estatesearch offer?
SF: We provide end-to-end support, a one stop shop if you like, including share valuation, sale and transfer. Valuations are ordered through our free, secure online portal. However, because the original share certificates and the original Grant of Probate are required for sale or transfer along with wet signatures, we work directly with solicitors to complete these stages of the process.
“Acquisitions and mergers can leave solicitors feeling as though they’re searching for a book in a library without knowing its title.”
Tracing Historic Shareholdings After Mergers and Acquisitions
Q: Do company acquisitions over time increase the challenge of share valuations?
SF: Absolutely. Acquisitions and mergers can leave solicitors feeling as though they’re searching for a book in a library without knowing its title. We use a combination of specialist technology and more than 30 years of accumulated data to track down shareholdings accurately.
For example, someone who purchased British Gas shares in the 1980s may now hold shares in Centrica, National Grid and Shell. Similarly, shares in GlaxoSmithKline have evolved into holdings in GSK and Haleon. While these are well-known examples, there are many lesser-known mergers that can complicate valuations. Our systems allow us to trace these changes efficiently and provide accurate valuations.
Managing Dividend Identification During Estate Administration
Q: What other challenges do Solicitors face?
SF: One of the complaints we hear most often from Solicitors relates to outstanding dividends being paid into bank accounts with no recognisable reference. Identifying such payments can be very time consuming.
Following a recent collaboration with Equiniti they have added a box to their Dividend Mandate forms where Solicitors can provide their own ‘payment identifier reference for any payments’ which will then be sent to the designated bank account. This will hopefully make a huge difference to Solicitors all over the country.
Replacing Lost Share Certificates During Probate
Q: What about lost share certificates?
SF: Because original certificates are required for sale and transfer, it’s essential to have the correct documentation. If share certificates are missing, we can arrange for replacements to be issued.
Following a recent collaboration with Equiniti they have added a box to their Dividend Mandate forms where Solicitors can provide their own ‘payment identifier reference for any payments’ which will then be sent to the designated bank account. This will hopefully make a huge difference to Solicitors all over the country.
“I recently worked with a legal firm where the deceased passed away in 1993, and we were able to help reclaim several thousand pounds in outstanding dividends on behalf of the estate.”
Reclaiming Outstanding Dividends for Estate Beneficiaries
Q: What about dividends?
SF: Dividends cease upon death, but there can be a significant delay between the date of death and the completion of estate administration, sometimes several years. During this period, dividends may still be due, and we help legal teams reclaim them for the benefit of the estate’s beneficiaries.
I recently worked with a legal firm where the deceased passed away in 1993, and we were able to help reclaim several thousand pounds in outstanding dividends on behalf of the estate.
Reviewing Share Certificates to Reduce Risk
Q: How do solicitors know which certificates are valid?
SF: We often say, “Send us the shoebox.” We’re happy to review all certificates provided and determine which are valid and which are no longer applicable.
Reducing Administrative Burden and Risk for Legal Teams
Q: Why choose Estatesearch for share services?
SF: When shareholdings are identified within an estate, it is vital to calculate their value at the date of death for inheritance tax purposes. While legal teams are fully capable of managing share valuation, sale and transfer, the process is often time-consuming.
Many solicitors therefore find our service invaluable. Our share services are accurate, HMRC-compliant, efficient, and cost-effective, helping to reduce both administrative burden and risk for the estate.
To find out more about Estatesearch’s share services please see: https://www.estatesearch.co.uk/service/share-valuations/
