Deceased Estates Securities Administration Service

Transcription

1 Deceased Estates Securities Administration Service

2 Administering an estate When someone passes away, the role of the person responsible for administering the estate can be complex and time-consuming, adding to the stress of an already difficult time. Executors often have little or no experience of estate administration, yet face a series of unfamiliar legal requirements before they can distribute the assets of the estate in accordance with the Will. If there is no Will, the task is that much harder. Link Market Services Limited (Link) is the share registry for several hundred unlisted and ASX listed entities (issuers), and the deceased may have one or more holdings in any of them. The deceased may have holdings in their own name or in joint names and the Will may have specific requirements for the distribution of these securities. Link has prepared this information brochure to help you understand the requirements of administering and distributing securities to beneficiaries. Link also offers a Deceased Estates Securities Administration Service, for which a fee is payable, to help you or your agent administer the securities held by the deceased. Alternatively you may choose to work with your advisers (Lawyers, Public Trustee, financial advisers) or you may handle the administration yourself. How do you get started? To understand what will be required from you it is important that you understand the overall sequence of events involved in deceased securities administration. The diagram in this brochure illustrates this. What forms do you need? Note: Separate forms are required for each issuer and each class of security. For Individual holdings Depending on a number of factors (whether there is a Will, whether Probate is required, how the securities are to be divided) you may need one or more of the following forms: Transmission Form for transmission of securities from the deceased holder to the Executor. Standard Transfer Form for transferring securities from the deceased to the beneficiary. Small Estates Statement and Indemnity Form a statement given by the Executor requesting the issuer to transmit or transfer the securities without requiring a grant of Probate or Letters of Administration. Section 1071B Statement a statement given by the Executor/ Administrator which is required where the securities are registered in a different state or territory to that where Probate or Letters of Administration have been granted. For Joint holdings Request to Register Surviving Holder(s) Form for the transmission of securities held jointly with the deceased to the surviving holder(s). How can Link help? Deceased Estates Securities Administration Service This service takes away much of the hard work of estates administration for a modest fee. For Joint holdings between $25 and $50. For Individual holdings between $60 and $280. See schedule of fees (next page).

3 Link will need some information from you, along with the legal documentation required for compliance with state and federal law. Once information is received, Link will: Provide a statement of the complete portfolio of all securities held by the deceased (for which Link is the registrar). This includes the number of securities in each holding and their value at the date of death. Complete all necessary documentation. Provide a dedicated hotline to give you direct access to one of Link s Deceased Estates specialists. Assign a dedicated case manager to provide a personal point of contact and answer your queries. Benefits of the service Simple we provide you with details of all holdings and complete the forms for you to sign and return. Straightforward there is no risk of forms being rejected due to errors. Reassuring you get peace of mind and instant access to specialist assistance if needed. Personal you get a named person as your dedicated case manager. Moderate known cost many advisers charge more for similar services. In addition, the fixed fee includes complete statements of all holdings and their value at date of death. How do I take up the service? Simply return to Link: 1. A completed questionnaire. This will provide the information Link needs to complete the necessary documents for you. Please take the time to answer all questions carefully in either the INDIVIDUAL HOLDINGS questionnaire or the JOINT HOLDINGS questionnaire. If the deceased person held individual and joint holdings, you should complete both questionnaires; 2. Documents. copies of the documents required by law before Link can transfer or sell the securities (refer to the bottom of the diagram for more details); and 3. Payment. A cheque, postal order or credit card details to cover the cost of the service. Charges are set out in the Schedule of Fees below. Schedule of Fees Joint Holdings Individual Holdings Portfolio value Up to 3 holdings Less than $50,000 $50,000 $100,000 More than $100,000 One holding 4 to 6 holdings More than one holding $25 $50 7 or more holdings $60 $115 $170 $115 $170 $225 $170 $225 $280 All fees quoted in this brochure are inclusive of Goods and Services Tax. What other options are there? If you do not wish to take up Link s Deceased Estates Securities Administration Service, you may: Utilise the services of a Lawyer, Public Trustee or other Adviser, who may charge fees for providing their services; OR Undertake the collection of details of all holdings and completion of the transfers to the various beneficiaries yourself. Note: Holding searches, replacement statements and other research services attract normal registry fees.

4 Securities Administration Investor passes away What is? Individual holding Death obtained Securities in Individual or Joint holding? Joint holding Death A legal document confirming the cause of death, issued by the Registrar of Births, Deaths and Marriages in each state. This is not the same as a Medical as to Cause of Death which is not acceptable as a supporting document when transferring securities from a deceased estate. less than Probate not needed Letters of Administration not needed Statutory Declaration needed No Will available Letters of Administration needed Executor/Administrator carries out wishes of deceased copies of: Death Will Small Estates Indemnity Form Will available more than Probate needed YOU WILL NEED Grant of Probate Section 1071B statement Is there a Will? less than Death Statutory Declaration more than Letters of Administration Securities are transmitted to surviving holder(s) Death Request to Register Surviving Holder Important note: This diagram covers the vast majority of situations which someone administering an estate may be faced with, but there may be specific combinations of circumstances which it does not cover. If you are unsure about how to proceed, please call Link on Will A legal document setting out the wishes of the deceased for the distribution of their assets. Threshold The maximum value of a holding above which Probate is required. For most securities the is $15,000, but you will need to check with Link as it varies for some issuers. Grant of Probate An official court document stating that the Will is legally valid and the named Executor of the Will has the authority to administer the estate. Letters of Administration An official court document issued where there is no Will, appointing an Administrator to administer the estate of the deceased, similar to an Executor. Statutory Declaration A written statement declared to be true and made before a prescribed witness such as a Justice of the Peace. Where the diagram shows that there is no Will or Letters of Administration, a Statutory Declaration by the Next of Kin is needed. Next of Kin Usually the surviving spouse, if no spouse, then the children of the deceased. If no children, then the parents of the deceased. Note that under State law there are specific rules for identifying Next of Kin. Copy A copy of a document which has been certified to be a true copy of the original by an authorised person such as a Justice of the Peace.

5 If you have any queries that are not answered in this brochure, or you have any problems completing the questionnaire, please contact Link on Contact Details Link Market Services Limited ABN Level 12, 680 George Street Sydney NSW 2000 All correspondence to: Locked Bag A14 Sydney South, NSW, 1235 Telephone: Fax: (02)

6 Privacy Policy: The information you provide in the returned questionnaire and supporting documentation will be treated in the strictest confidence and used only in accordance with Link s Privacy Policy. If you would like a copy of our Privacy Policy you can us at estates@linkmarketservices.com.au. You will also find it on Link s website at or you may call us on