Communicating with Beneficiaries About Sales of Deceased Estate Shares

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Communicating with Beneficiaries About Sales of Deceased Estate Shares

Disclaimer: The content provided in this blog is for informational purposes only and does not constitute financial advice.

When dealing with the sale of shares from a deceased estate, communication with beneficiaries is crucial. In Australia, the process of selling shares from a deceased estate can be complex, and making sure all parties involved understand the process is key to ensuring a smooth transaction. Here we explain how to effectively communicate with beneficiaries about the online sale of deceased estate shares, what steps are involved, and how to maintain transparency throughout the process.

Understanding the Sale of Deceased Estate Shares

When a shareholder passes away, their shares form part of their estate, which is distributed according to their will or legal provisions if there is no will. The executor of the estate typically oversees this process, which often involves selling shares to distribute the proceeds among the beneficiaries.

In Australia, the process to sell deceased estate shares involves verifying legal documentation, such as probate or letters of administration, and engaging a share sale service like Sell My Shares, which specialises in online transactions. By selling shares online, executors can ensure a timely and efficient sale, but communication with beneficiaries remains critical throughout the process.

Key Steps for Communicating with Beneficiaries

  1. Initial Notification
    As soon as the decision to sell the deceased’s shares has been made, the executor should inform the beneficiaries. This initial communication sets the foundation for a transparent process. In this notification, the executor should outline:
    • The reason for the sale.
    • The approximate value of the shares.
    • The timeline for the sale.
    • The platform or service to be used for the sale (e.g., Sell My Shares).
  2. Clarify the Legal Process
    Many beneficiaries may not be familiar with the legal steps required to sell shares from a deceased estate. Explaining the need for documents like probate and the executor’s role in managing the estate’s assets will help alleviate concerns and prevent misunderstandings. Additionally, provide clear information about how the proceeds from the sale will be distributed. Some beneficiaries may mistakenly believe they will receive the actual shares, while in most cases, the shares are sold and the funds are divided among beneficiaries.
  3. Involve Beneficiaries in Decision-Making
    While the executor has the legal authority to manage the estate, keeping beneficiaries informed and involved, where appropriate, is essential for maintaining trust. If possible, ask beneficiaries for their input on aspects of the sale, such as:
    • Whether to sell immediately or wait for market conditions to improve.
    • The preferred method of sale (though online share sales are often the most efficient).
      Even though the executor has the final say, giving beneficiaries a voice can help them feel included and respected during the process.
  4. Provide Regular Updates
    Once the sale process is underway, beneficiaries should receive regular updates. Whether you’re waiting for documents to be approved, confirming the shares have been listed for sale, or when the sale has been completed, timely updates will keep everyone informed.

    When selling shares online through services like Sell My Shares, the process is generally quick, but it’s still important to communicate every step to avoid surprises. Make sure beneficiaries understand when they can expect their share of the proceeds, especially if market fluctuations could impact the final amount.

Benefits of Using an Online Share Sale Service

Selling shares online has become the preferred method for managing deceased estates due to its convenience and efficiency. Online platforms such as Sell My Shares simplify the process, allowing executors to manage the sale without the need for lengthy paperwork or face-to-face meetings.

Why Choose Online Share Sales?

  1. Speed
    Online sales can often be completed in a matter of days once the necessary documents are submitted, ensuring beneficiaries receive their entitlements sooner rather than later.
  2. Transparency
    Using an online platform offers a digital paper trail, making it easy for executors to provide beneficiaries with detailed reports about the sale process, including the sale price, fees, and net proceeds.
  3. Cost-Effective
    Traditional share sales often involve brokers and hefty fees. Online services streamline the process and reduce costs, benefiting the estate and, ultimately, the beneficiaries.
  4. Convenience
    The ability to manage the sale from anywhere in Australia makes online platforms ideal for executors who may not be in the same location as the estate. It also allows for quicker communication with beneficiaries.

Addressing Concerns from Beneficiaries

It’s not uncommon for beneficiaries to have concerns or questions about the sale of shares, particularly if they have a personal or emotional attachment to the deceased’s assets. Addressing these concerns early on can prevent disputes and maintain harmony among all parties.

Common Concerns and How to Address Them:

  • Why are the shares being sold instead of distributed?
    Explain that liquidating the shares often makes it easier to distribute the proceeds equally among all beneficiaries. Furthermore, managing shares as a group would require unanimous agreement on every future decision regarding the shares, which can be complicated.
  • How will the sale price be determined?
    Beneficiaries may worry about selling the shares for less than their perceived value. Highlight that the shares will be sold at the market price, which is the best indicator of their current value.
  • When will I receive my portion of the proceeds?
    Executors should clarify that once the sale is completed, and after any necessary fees are deducted, the remaining funds will be distributed. Provide an estimated timeline for this process to help set expectations.

Conclusion

Selling shares from a deceased estate can be a sensitive and complex process, but with clear communication, it can be handled smoothly. Using an online share sale service like Sell My Shares ensures a fast, transparent, and cost-effective process. Executors should prioritise transparency, keep beneficiaries informed at each stage, and address concerns with empathy to avoid any misunderstandings.

By following these steps, you can navigate the sale of deceased estate shares with confidence, ensuring that all parties involved feel respected and well-informed.