We are the sole executors of an estate. Shares have been left to a number of charities in a specific legacy. The majority have agreed to sell them but a few have refused as they feel the time isn’t right.
As executors, do we have the power to go with the majority. If so, does anyone know what legislation this comes under as, the disagreeing charities have asked for this to be quoted.
Abbi
You do not say how many shares or charities are concerned, but is it not possible to calculate how many shares are due to the majority and sell those? I appreciate that this may not be an exact number, so you may need to round up and so include a fraction of the minority’s entitlement to be paid in cash now, admittedly against their preference, but is the amount involved likely to be worth arguing about?
On a practical point, what is proposed for the remaining shares due to the minority charities? The obvious answer would seem to be to transfer these to the charities concerned, which might again leave a few shares over - if so then a significant cost saving could be made if the “odd” shares are included in the initial sale.
This is, as always, subject to the precise terms of the will. If the value involved is significant and a sale of the holding [perhaps in a private company] is likely to be complicated, perhaps you should already be reviewing the will file with a view to advising your insurers of a possible claim?
The question assumes that the charities must all be treated the same. I would normally expect them to have a right to call for their “share” of the shares to be transferred to them (or their nominee), or sold on their behalf.
Unless the will, includes unusual provisions, I would be inclined to deal with the shares as individual “packages” for each charity.
Paul Saunders FCIB TEP
Independent Trust Consultant
Providing support and advice to fellow professionals