Cash shares or leave invested?

Discussion in 'Legal and financial issues' started by And247, Apr 15, 2015.

  1. And247

    And247 Registered User

    Aug 21, 2014
    17
    Northumberland
    Hi

    I am a CoP Deputy for the finances of my dad who is in care home following a significant stroke over a year ago.

    I am sorting out his various bank accounts that he seems to have collected and I'm now thinking about some shares he has in about 8 companies a total of about £8,000. I have registered my self with these companies and now get all communications, dividends etc. to my address.

    My question is really what shall I do with these shares? My instinct is to cash them in to amalgamate his money in to a much more managegable list of Current account, Savings account, Cash ISa. (rather than have smaller amounts in a number of places).

    However I'm also thinking about what would be best for him and my role as Deputy to look after his money. In which case does this lead me to retain the shares (which I guess their value can can increase or reduce) and then leave them as is to be sorted out by the executor of his will in the future (also me but with a solicitor who's charges are probably not insignificant...).


    My gut feel is to sell the shares, amalgamate his cash now, remove risks of share price reduction and potentialy reduce the solicitor executor costs for the shares by reducing the complexity of my dads finances. (but also potentialy loose out on any share price increase).


    Any guidence from anyone from the past?

    Many thanks!

    A
     
  2. nitram

    nitram Registered User

    Apr 6, 2011
    19,021
    Male
    North Manchester
    "My instinct is to cash them in to amalgamate his money in to a much more managegable list..."

    That would be my instinct as well, if he is over 65 and has not already invested in NS&I 65+ bonds I would put it in the 3Yr bond at 4%, cash can be withdrawn before term for a 90 day loss of interest.
     
  3. turbo

    turbo Registered User

    Aug 1, 2007
    3,851
    #3 turbo, Apr 15, 2015
    Last edited: Apr 15, 2015
    How are the shares held. If you have paper certificates the cost to sell is much higher. If they are paper certificates you could move them into a nominee account with a stockbroker (all the big banks etc). You are usually able to do this free of charge and then dealing costs to sell would be much lower. Remember to send share certificates by special delivery.
    Also you need to look a what type of companies your dad's shares are invested in and what the dividends are like. If your dad has made a reasonable profit on his shares and you are unwilling to take any risks with the money then it is better to sell. Another option might be a Stocks and Shares ISA tracking the FTSE 100 although it is better to put in a monthly amount rather than the whole lot in one go.
    .
     
  4. Soobee

    Soobee Registered User

    Aug 22, 2009
    2,734
    South
    cor, wish I'd known this! I sold them all one by one with paper certs. except Lloyds which we didn't have all the certificates for. The missing 8 shares were worth £13, it would have cost £55 to replace the certificate.
     
  5. sinkhole

    sinkhole Registered User

    Jan 28, 2015
    269
    As Turbo said, look at the past dividends. My mum has a shareholding worth approx. £1600 in one company, but just received a dividend payment of £60 which is a pretty good return if you compare it against savings accounts at the moment.

    I've just gone through the process of searching for a load of shares held by my aunt, who has dementia, and will be cashing some in and re-investing others depending on dividends, company performance and market sector.

    I'd say if you're not confident about making investment choices with stocks and shares it probably would be best to convert your dad's shares into an ISA or some other less risky product.
     
  6. turbo

    turbo Registered User

    Aug 1, 2007
    3,851
    It's so much easier holding them in a nominee account Soobee. It sounds from what I have read that quite a few go missing. We have had two certificates go missing over the last few years. Those 8 Lloyds shares would now be worth approx. £6.40
     

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