Dealing with foreign assets can be complex, especially when it comes to overseas share dealing. A question we're frequently asked is: Does a UK Will cover foreign assets? With more UK companies being acquired by US entities, understanding how to deal with overseas shares is increasingly important. Our latest blog explores the challenges of foreign assets, focusing on how to navigate overseas share dealing effectively and ensure foreign assets are properly managed.
To put this into perspective, there were 73 acquisitions of UK companies by foreign entities for a total value of £91 billion in 2024, up 55% from 2023. Whilst not all of these acquisitions involved companies with shareholders, each had the potential to create millions of foreign shareholders in the UK. With so many affected by overseas share dealing, understanding how to deal with overseas shares and the broader implications of dealing with foreign assets is essential.
At Title Research, we frequently encounter cases where individuals have died without realising they owned US stock, highlighting the importance of dealing with foreign assets during estate administration. Executors and Solicitors are often unaware of the complexities involved in overseas share dealing and may not know how to deal with overseas shares effectively. Title Research are experts in repatriating assets, and we use our extensive experience and global network of local professionals to deal with overseas assets quickly and seamlessly. In this blog post, we’re sharing our expertise of dealing with US assets and how you can avoid the pitfalls.
The same language does not mean the same service.
Dealing with the same company and speaking the same language doesn’t necessarily mean you’ll receive the same service. Administering assets in the UK is completely different from dealing with foreign assets such as US shares. Even though many US Share Registrars have UK counterparts, the process of overseas share dealing can be complex and time-consuming. Executors and Solicitors often find that knowing how to deal with overseas shares is crucial, especially when foreign assets fall under an estate.
UK
In the UK, Share Registrars will typically provide the date of death and present-day share balances. Additionally, they will accept a court-sealed Grant of Probate at any time. They can also reissue any uncashed cheques to the estate or a Solicitor.
US
However, most US Share Registrars will not release any information without a Grant, which can cause complications if you’re dealing with a large UK estate and gathering evidence to prepare the IHT400 paperwork.
Additionally, in order for US Share Registrars to accept a Grant, it must be sealed and dated within the last 60 days.
Furthermore, due to the U.S. Securities and Exchange Commission’s (SEC) reporting rules, cheques can only be reissued to the original payee. If you have cheques on an estate for a US asset that are made payable to the deceased and held in US dollars, it’s unlikely that a bank will cash the cheques.
Dividends received on US assets are subject to a 30% Foreign Withholding Tax. There are steps you can take to reduce this tax down to 15%, but generally, you have to take into account that dividends owed to the estate will be worth 30% less than expected. However, under the US–UK tax treaty, this rate is reduced to 15% for UK residents who complete a W-8BEN form, certifying their non-US status.
Fractional shares are common with US shareholdings and will continue to accrue during the estate administration. It can be a complicated process to work out what shares were held in the estate at the date of death and what shares have since been accrued.
Instructing an asset repatriation specialist
If you’re dealing with an overseas asset, we highly recommend instructing an asset repatriation specialist who understands the pitfalls and paperwork required to navigate the red tape of the country. We commonly receive instructions from Solicitors who are dealing with estates where UK stock became foreign stock after death. Title Research can assist Solicitors in liaising with US Share Registrars; verifying and valuing US stock; transferring or selling US stock; and dealing with tax issues to mitigate costs to the estate and exclude the estate from paying US Inheritance Tax.
Here are a few examples of ways in which we’ve stepped in to administer US shares and accelerate the estate administration process.
Case study: Dealing with Mrs Davies' US shares
We were approached to help deal with shares held by the late Mrs Valerie Davies in the US company Marsh & McLennan Plc. As part of the requirements, the client was asked to provide proof of the asset.
Many months later, after the initial enquiry, the client advised Title Research that they had been in touch with the Share Registrar in the USA on multiple occasions, and found it impossible to obtain a recent statement as proof of the asset.
The client was unimpressed with the service they had received in the UA, commenting that they had easily been able to obtain statements from UK Share Registrars regarding the UK assets.
Title Research agreed to obtain a statement on behalf of the estate, and upon investigations, discovered that the asset was actually registered to the Deceased's former work address, from 24 years previously.
Using this information, Title Research was able to liaise with the Share Registrar and obtain proof of the asset.
Case study: Mr Hill's shares in Dr Pepper Snapple Group Inc.
Title Research was instructed to transfer over 5000 shares in Dr Pepper Snapple Group Inc. for Mr Richard Hill, who had died some considerable time before in 2003.
Upon review of the file, a senior member of the overseas assets team pointed out to the client that Dr Pepper Snapple Group Inc. did not exist in 2003, and the only way these shares would have existed is if the Deceased actually had shares in Cadbury as of his date of death.
The client confirmed that this was the case, following which Title Research investigated further and identified that as a result of the former Cadbury shareholding, Mr Hill would also have shares in Mondelez Inc. and The Kraft Heinz Company. Furthermore, if he had over 5,000 shares in Dr Pepper, the share balances in the additional holdings could likely increase his US estate to over $800,000.
If you’d like to find out more about our asset repatriation services, call our Client Services Team on 0345 87 27 600, email info@titleresearch.com, or fill in the form below.
Topics: Repatriating assets, Overseas Assets, Grant Reseal, US Shareholdings
