How to Transfer Shares from a Deceased Estate
When a person passes away, shares held solely in their name will generally form part of their deceased estate. If you have been appointed as the executor or administrator, you are responsible for identifying and administering these assets in accordance with the Will or, where there is no valid Will, under the Succession Act 2023 (SA).
Transferring or selling shares held by the deceased can involve several steps and formalities, particularly when dealing with share registries or brokers.
Step 1: Notify the Share Registry or Broker
First, locate the deceased’s shareholding records or any relevant statements issued by share registries or brokers. If you are unsure whether the deceased held shares, consider:
- Checking with their accountant or financial planner, and
- Searching the deceased’s records at their residence.
Once identified, contact the share registry or broker to notify them of the death. You should also ask them to confirm the requirements for transferring or selling the shares.
Step 2: Receive Confirmation & Requirements
After being notified, the share registry or broker will usually:
- Confirm whether the deceased held shares;
- Provide a detailed list of the shareholdings; and
- Set out their specific requirements for processing a transfer or sale of the shareholding.
The documents required will depend on the registry, broker, value of the shareholding and circumstances of the estate. They may include:
- Certified identification of the executor or administrator;
- Certified copy of the Grant of Probate or Letters of Administration;
- A certified copy of the Death Certificate;
- A certified copy of the Will, where relevant; and
- Completed transmission, transfer, indemnity or other deceased-estate forms required by the registry or broker.
Each share registry and broker has their own policies. Be sure to follow their instructions carefully.
Depending on the value of the shareholding and the registry’s requirements, a Grant of Probate or Letters of Administration may not always be required. Some registries have separate procedures for smaller shareholdings.
Disclosure of Shares in a South Australian Estate
Where a Grant of Probate or Letters of Administration is sought in South Australia, shares forming part of the deceased estate should be properly disclosed as estate assets.
If shares are identified after a Grant has been issued, further disclosure to the Supreme Court of South Australia may be required before the shares are transferred or sold. A share registry may also require evidence that the asset has been disclosed as part of the estate.
Step 3: Identify the Beneficiaries
The executor or administrator is responsible for ensuring the estate is administered correctly.
- If the deceased left a valid Will, shares must be dealt with according to the Will.
- If there is no Will, you must follow the rules of intestacy under the Succession Act 2023 (SA).
Depending on the terms of the Will and the circumstances of the estate, the shares may be transferred to a beneficiary or sold and the proceeds distributed. The executor or administrator should consider the terms of the Will, the estate’s liabilities, and the interests of the beneficiaries when determining how the shares are to be dealt with.
Jointly Owned Shares
Where shares are registered jointly, the surviving holder will generally be recognised as entitled to the deceased holder’s interest in the shares. The share registry or broker will usually require evidence of the death and its relevant surviving-holder documentation before updating the registration.
Step 4: Complete & Submit the Forms
The forms required will depend on the share registry or broker, the type of shareholding, and what is to happen to the shares. These may include:
- A transmission application;
- A standard transfer form;
- A small-estate indemnity or similar form, where applicable; and
- Other deceased-estate or identification forms required by the registry or broker.
If the shares are to be transferred to a beneficiary, the registry or broker may also require information and identification from the person receiving the shares.
If the shares are to be sold, the executor or administrator may need to engage a broker or use the deceased’s existing broker or trading platform. The share registry itself may not provide a share-sale service.
Commonly Required Supporting Documents
Depending on the circumstances, supporting documents may include:
- Certified copy of the executor’s or administrator’s photo identification;
- Certified copy of the Death Certificate;
- Certified copy of the Grant of Probate or Letters of Administration;
- Certified copy of the Will (if applicable); and
- Any additional documents as requested by the share registry or broker.
Tax Considerations
There may also be tax consequences when dealing with shares in a deceased estate. The tax treatment can differ depending on whether the shares are transferred to a beneficiary or sold by the estate. Executors and administrators should consider obtaining appropriate tax advice before selling or transferring significant shareholdings.
Contact Us
For more information about transferring shares from a deceased estate, contact Bambrick Legal today. We offer a free, no-obligation 30-min consultation for all legal enquiries.
- Fill in our enquiry form here
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Read more about our Probate and Estate Administration services here.
Related Blog – Capital Gains Tax (CGT) & Deceased Estates
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