Sale & Transfer Services Resealing Grant of Probate Case Scenarios

• Case scenario 1 - U.S.A. deceased with English assets
• Case scenario 2 - English deceased with U.S. assets
• Case scenario 3 - English deceased with Australian assets
• Case scenario 4 - English deceased with Malaysian assets

Case scenario 1 - U.S.A. deceased with English assets

In this case the deceased was a US citizen with English shareholdings. His Executor had been trying for two years to get help in selling the shares in various companies when he asked us for help.

We were able to arrange for the appointment of an English Executor to oversee the estate, for the English Grant of Probate to be issued, and for the Grant to be registered with the Registrars of each Company.

The sale of shares in one company was effected easily and the monies transferred to the U.S. beneficiary; the beneficiary wanted the shares in another company converted into ADRs (as he could then track the value of the shares easily and could arrange for the subsequent sale when he wanted to do so at some later date). We arranged and supervised the conversion of the shares into ADRs. As to another company, it had a stock split and demerger with the result that some new shares that were issued to the estate were now quoted in South Africa on the Johannesburg Stock Exchange.

The client thought the shares worthless and was about to simply abandon them, when we were able to obtain a valuation for the same, and subsequently sell them at a price which covered all of the costs of the whole process.

Case scenario 2 - English deceased with U.S. assets

The deceased had shares in a publicly quoted company in the USA. The procedures in the USA vary widely from state to state and are not consistent. In addition there are considerable delays in obtaining replies from share registrars, and frequently wrong information is given. Also Medallion Guarantees are needed and documents are required to be certified by English courts within particular time periods. It is an exercise in delay and frustration and frequently tests the patience of the calmest of persons.

In addition, if the USA assets are worth more than US$60,000 then Form 706-NA has to be filed with the USA IRS within 9 months of the date of death even though in most cases the requirement to even file the form, let alone the time period, is not known to the deceased's estate until long after the English estate has been nearly completely settled. Fines can be imposed for delay in filing the Form. The US IRS will take (by their own admission) between 6 - 18 months to issue the needed Federal Transfer Certificate before any assets in the USA can be sold or transferred.

In addition, Form W8-BEN confirming that the Executors are non-resident for US tax purposes will usually have to be filed with the company concerned. This has to be renewed every 3 years.

The result was that after a period of nearly 2 years we were able to have the US assets transferred into the names of the Executors and then subsequently the shares were sold and the proceeds accounted for to the estate.

Case scenario 3 - English deceased with Australian assets

In this case the deceased owned shares in companies which were registered in different States in Australia. We were able to confirm the shareholdings, and then instruct a local lawyer to Reseal the English Grant of Probate, register the Resealed Grant with the various companies (so saving separate Resealing in each State which would have been extremely expensive) and subsequently we were able to have the shares sold and the proceeds accounted for the estate. The whole process took about 5 months.

Case scenario 4 - English deceased with Malaysian assets

The deceased owned shares in several Malaysian companies. First it was necessary to ascertain ownership of the shares, which in the absence of a statement from Bursa Malaysia or the original share certificates proved difficult. We nevertheless were able to instruct local solicitors to apply for a Reseal of the English Grant and obtain the Reseal based upon undertakings to the Court to provide confirmation of shareholdings once the Grant had been Resealed and the information obtained. We were successful in this approach, registered the resealed Grant and eventually were able to arrange for the shares to be sold and the proceeds accounted for to the estate.