Most often, houses, apartments and other real estate are inherited. But it is not uncommon when a co-owner of a business holding a block of shares wants to transfer its share in the securities to the heir. Any inherited property must be reissued within the period prescribed by law, the same applies to the shares of the enterprise. How to evaluate shares for inheritance and what will be required for this - the next article will tell.
Ways to inherit
The Civil Code of the Russian Federation regulates the inheritance in two ways: by law and testament. In the first case, the property of the deceased (movable and immovable, tangible and intangible) is divided equally between close relatives. The second case is regulated by a special procedure in which the property of the testator is transferred to those persons whom he indicated in the will.
Rights and obligations also pass to the heir (for example, debt guarantee). Bank accounts and equity securities can also bequeath or inherit.
How to inherit shares
The process of entering into ownership after the death of the testator is identical when receiving securities:
- It is necessary to collect a package of documents confirming kinship with the deceased. If there are none, but there is an assumption that the deceased indicated in the will of you or your close friend, you should proceed to the second paragraph.
- It is necessary to find out whether a will exists, which was made by the testator. To do this, you will have to go to the nearest notary's office and ask to check for the presence of the last will of the deceased. If there is one, you need to contact the notary who keeps the will. When there is no inheritance paper, you should visit the district notary public who serves the place of residence of the deceased. You can find out about this on the Internet or at the same notary to whom the visit was made.
- The procedure for contacting a notary public and inheritance.
Thus, it will not be difficult to get the shares as an inheritance if a number of simple actions are carried out, most of which will be performed by a notary and an appraisal company.
Inheritance Procedure
Represents the actions of the heir in relation to property, which should be transferred to him by inheritance. In general, it looks like this:
- applying to a notary's office, confirmation of his right to inheritance (documents indicating kinship, or a will);
- payment of state fees for notary services;
- transfer of ownership, which takes 6 months from the date of opening of the estate (that is, the day after the death of the testator); and although the law of ownership flows from the moment of opening the inheritance, relatives and heirs can dispose of it only after the entry into ownership.
It is worth noting here that during the inheritance of securities, it is necessary to evaluate shares to enter into the inheritance.
What is it for?
Evaluation of shares for inheritance is necessary in order to obtain ownership of them, because for this the state duties are established by law, by paying which relatives enter into the inheritance. Accordingly, in order to determine the size of the state duty, it is necessary to assess the value of the block of shares.
According to current tariffs, for heirs of categories 1 and 2, the payment of the state duty is provided in the amount of 0.3% of the total value of the inherited property, but not more than 100 thousand rubles. For all other categories of persons who inherit securities, a duty of 0.6% of the total value of the property is provided, but not more than 1 million rubles. Therefore, after valuing Gazprom shares for inheritance, you will not have to pay more than the amount due.
Documents for inheritance
You will need the following:
- statement;
- documents confirming kinship or the ability to inherit property;
- death certificate of the testator (the original is needed - it is issued to the relative who organized the funeral);
- identity document;
- valuation of shares for a notary.
A package of documents is quite simple to collect. But keep in mind that an independent valuation of shares for a notary will take some time.
Assessment Procedure
It falls on the opening day of the inheritance, that is, it will be carried out based on the exchange rate and stocks current at that time.
For a stock valuation for a notary public, you can contact companies that specialize in setting the price of equity securities. This can be done both in a private commercial company and in a bank. The cost of the procedure starts from 2 thousand rubles, depending on which shares are inherited (of the 1st or 2nd and more issuers, this plays a significant role in determining the cost of the service).
To apply to an appraisal company, you will need the following documents:
- death certificate;
- identity document;
- extract from EPA (i.e. the number of shares held by the deceased).
Calculation methods
Equity securities are divided into the following types:
- Profitable - analysis of the presence or absence of demand for stocks.
- Cost - indicates the price for a package of securities.
- Comparative - evaluates similar shares of a similar company.
Valuation of shares for registration of the inheritance is quite formal, since it does not require a comprehensive analysis of the situation on the securities market.
The final examination document indicates the methods used during the analysis of the package of documents, articles and provisions of legal documents that affect the price and demand, exchange rates, political and financial situation, as well as other factors that may affect the fact of the assessment. After that, the heir receives a document confirming the valuation of shares for the inheritance, and he can contact the notary with him to pay the state fee and enter into legal ownership.
Factors Affecting Stock Price
As mentioned earlier, the document on the evaluation of shares for inheritance indicates a lot of nuances that affect the price of a package of securities.
Specialists should take into account all the assets of the existing enterprise, find out the profit that the organization has received over the past three years and, taking into account the development and expansion of the business, calculate possible future income. All of these factors must be considered when evaluating the value of shares for an estate.
It is worth considering the purpose of the examination, if this happens to enter into the inheritance, then this will not affect the price of shares significantly. However, when liquidating a company, valuation of securities will show a much lower cost than when selling or merging companies.
Specialists analyze the demand and supply of the market segment, under which the enterprise falls. This is necessary to find out the cost of a package of securities, if it goes into free sale. It should be borne in mind that the real value of the shares may differ significantly from that indicated in the nominal valuation after the death of the shareholder of the company.
All economic, political, environmental and social factors in one way or another affect the value of stocks. Therefore, the evaluation takes into account all the capabilities of the presented company, its material and technical equipment, financial and accounting documentation, documents of title and many other means of organization.
Expertise Nuances
When evaluating shares for inheritance, certain difficulties may arise:
- complicates the examination if the company whose shares were owned by the deceased has problems with accounting;
- The evaluation procedure provides for the analysis of the activities of the company over the past three years; when the company is younger, the assessment is made for the entire period of existence, which slightly complicates the whole process;
- after valuation of shares for inheritance and obtaining the right of ownership for them, it is better to sell securities, since no one knows how long the joint-stock company will last and whether it will bring any profit;
- the sale of large blocks of shares (up to 10%) will occur at a reduced price (15-20% percent of the value on the exchange), which cannot be said about small securities (up to 3%), which are bought at the exchange value.
The timing
It is worth remembering that the law limits the possibility of inheritance for up to 6 months. Otherwise, the heirs of the following categories will be able to take ownership of the property of the testator, and even a will will not prevent them from doing so.
Notary Share Valuation Report
It is compiled after the relevant examination. It is a document that is stitched and numbered, ranging from 20 to 80 pages. The document is supported by the seal of the organization and the signature of the expert who conducted the assessment.
It is worth noting that the valuation of shares in the market segment is strictly regulated by law. For a notary public, the valuation of shares is not a certificate or an act; for him, this is a full report describing all current methods and factors affecting the value of a package of securities. The notary will not accept a certificate of the par value of shares.
Federal Law No. 134 and the Federal Standard for Valuation regulate the examination of securities. Valuation should be carried out for the entire block of shares using three comparative methods. And at the end of the report should be agreed on the results obtained from all means of assessment.
A stock is a security that determines the share of capital in a joint stock company. The valuation of shares makes an examination of the cost of capital, which falls on the shareholder of one security or a whole package.
I can issue shares both open joint stock companies and closed ones. Valuation of shares in a closed joint-stock company is a little more complicated, since the costs of their sale and the sale period are higher than those of stocks. This is due to the fact that it is impossible to trade shares of closed companies in the open market.
Shares give rights to their owners. They are divided into ordinary and privileged. The market price of shares is the value of the rights of their owner to carry out certain activities (voting at a stock meeting, the right to dividends and a share in the liquidation of an organization). This approach significantly affects the determination of the value of shares.
To enter into the inheritance, the notary asks for a stock valuation. This is due to the fact that entering into ownership of certain property, the heir must pay a state fee, which varies depending on the degree of relationship and the total value of the property.
The price of shares is determined by a special appraisal company or bank at the date of opening of the inheritance. By submitting a report to the notary office and paying the state fee, the heir enters into the right of ownership of the testator.