Estate Administration
Guide to Dealing with the Security Holding of a Deceased Investor
Link has prepared this guide to help you undertake the sometimes complicated and daunting task of administering Estate Securities (such as shares).
Please find answers to the most commonly asked questions below.
What is probate?
It is usually the executor's job to obtain a grant of probate from the court when the value of an estate exceeds AUD$15,000.00 (see section 14 for further information on estate valuation). Probate is a court order saying that the will is valid and that the executor has the right to administer the estate. The whole process of administering an estate commonly takes at least a year.
What does intestate mean?
If the deceased has not left a will, one of the beneficiaries must apply for Letters of Administration. The estate is then administered under the law relating to intestacy (i.e. dying without a will or dying intestate).
Do I need professional assistance? (eg. Trustees or Solicitors)
Not necessarily, however, executors often enlist the help of a solicitor to administer the estate. Sometimes – e.g. when an estate is intestate – an experienced professional can provide valuable assistance.
What documentation do I need to send to the share registry?
Single Ownership – Where Probate/Letters of Administration Have Been Granted
- A certified copy of Probate/Letters of Administration; and
- A completed Transmission Application form (for the transmission of assets into the name/s of the executor/s).
OR
- A completed Standard Transfer form (for transfer directly into the names of the beneficiary/ies.)
Notes for Domestic Holders
If Probate/Letters of Administration is:
- not granted in the state or territory in which the securities are registered, a section 1071(b) statement must be submitted to the share registry in accordance with section 1071(b) of the Australian Corporations Law.
- granted in South Australia, a Certificate of Disclosure to the Supreme Court of South Australia, issued in compliance with section 121a of the Administration and Probate Act 1919, should also be submitted.
Notes for Overseas Holders
If the Probate/Letters of Administration is:
- not granted or resealed in Australia, executor/s must complete and submit a declaration. Reseal may be required at the discretion of the company.
- resealed in Australia but not in the state or territory in which the securities are registered, a section 1071(b) statement must be completed in accordance with section 1071(b) of the Australian Corporations Law.
Single Ownership – Where No Probate/Letters of Administration Are Required
- A small estates indemnity form; and
- A certified copy of the Will and Death Certificate; and
- A completed Transmission Application form (for the transmission of assets into the name/s of the executor/s).
OR
- A small estates indemnity form; and
- A certified copy of the Will and Death Certificate; and
- A completed Standard Transfer form (for transfer directly into the names of the beneficiary/ies.)
Notes
If the holding value exceeds AUD $15,000.00, Probate/Letters of Administration cannot be waived. For more information, please refer to General Information overleaf.
Single Ownership – No Will (Intestate)
- A small estates indemnity form; and
- A certified copy of the full Death Certificate; and
- A Statutory Declaration of Indemnity Next of Kin form; and
- A completed Transmission Application form (for the transmission of assets into the name/s of the executor/s).
OR
- A small estates indemnity form; and
- A certified copy of the full Death Certificate; and
- A Statutory Declaration of Indemnity Next of Kin form; and
- A completed Standard Transfer form (for transfer directly into the names of the beneficiary/ies).
Notes
If the holding value exceeds AUD $15,000.00, Probate/Letters of Administration cannot be waived.
Joint Ownership
- A written request for transmission signed by the surviving joint holder/s; and
- A certified copy of the full Death Certificate.
Should I send original documents?
No, do not send the original documents. All Estate documents provided should be certified copies only. A certified copy is a photocopy that has been certified as a true and correct copy of the original, signed by a person authorised to witness a statutory declaration (such as a Justice of the Peace).
Who can complete the relevant forms?
The necessary forms must be completed and duly signed by an authorised signatory of the Estate.
Where can I find the relevant forms?
Forms can be downloaded from this website. Alternatively, you can obtain the necessary forms by calling 1300 303 991 or writing to us at GPO Box 1736P, Melbourne, Vic 3001.
Please note – different classes of securities will require a separate Transmission/Transfer form for each class. The division of the holding between multiple beneficiaries will also require a separate form for each beneficiary.
What’s the difference between Issuer Sponsored and Broker Sponsored (CHESS) holdings?
Issuer sponsored holdings are those holdings not sponsored by a broker and were probably purchased directly from the issuer during its Initial Public Offering (IPO).
How do I know if the estate has Issuer Sponsored or Broker Sponsored (CHESS) holdings?
If the Holding Statement has a 10 digit number preceded by the letter 'I', then your shares are issuer sponsored. This number is referred to as a Securityholder Reference Number (SRN).
If your Holding Statement has a 10 digit number preceded by the letter ‘X’, then your shares are broker – or CHESS – sponsored. This number is referred to as a Holder Identifications Number (HIN).
About Broker (CHESS) Sponsored holdings
The sponsoring broker – i.e. the broker through whom the holdings were purchased or managed – must authorise any transaction on the holding. Please contact the broker regarding their requirements for dealing with CHESS holdings.
How can I sell these securities?
Securities sold on the stock market must be sold via a broker.
No Probate/Letters of Administration – holding exceeds AUD $15,000.00
Where there is no Probate/Letters of Administration and the value of the holding exceeds AUD15,000.00, a Transfer Indemnity Bond is required (as opposed to a Small Estates Indemnity form). These bonds are made available by:
Australian Probate Bonds Underwriting Agency
Attn: Andrew Lee
PO Box 5508
Stafford Heights QLD 4053
Phone: 07 3350 4225
Fax: 07 3350 4226
Any queries regarding the cost of obtaining a Transfer Indemnity Bond, based on the value of the holding, should be directed to the Bond Issuer.
Joint Ownership – previously quoted instructions
When a holding is transmitted into the name(s) of the beneficiary or beneficiaries, a new holding is created with a new SRN or HIN.
Instructions previously provided (by the deceased and/or the other holders), such as Tax File Number (TFN) or TFN exemption, dividend and/or reinvestment plan details, annual report elections, etc. are NOT automatically carried over to the new holding. Therefore, when lodging the request for transmission into the name(s) of the beneficiary or beneficiaries, new instructions will have to be submitted.
Valuation of an estate and tax considerations
Valuation of an Estate Holding
The market value (where securities are listed) of the securities themselves.
The value of dividends or distributions announced before the date of death but not actually paid until after the date of death should be considered when preparing the tax return as at the date of death.
Dividend or distribution cheques paid out by the company or trust that had not been presented by the deceased. Please note that dividends or distributions that have been paid by companies or trusts that have not been presented by the Deceased may have been forwarded to ‘Unclaimed Monies’ after a certain period of time (this period of time is dependent on the state within which the company or trust is incorporated).
Check whether there have been any dividends or distributions paid since the date of death, or whether there have been any dividends that have been announced on the estate holding but that have yet to be paid.
Tax and distribution considerations
It is the executors/administrators task to lodge a tax return for the estate as at the date of death. Any dividends or distributions paid on the holding in the relevant financial year are taxable income. Also, if the holding is disposed of to cover the costs of the administration of the estate the capital gain or loss on the holding must be included on the tax return for the estate. The executor of the estate is also responsible for completing a tax return every year that the estate receives income.
Capital Gains Tax (CGT) is not applicable when a security holding is transferred to a legal representative or beneficiary* of an estate, however, if the beneficiary or legal representative of the estate decides to sell or transfer the holding then this is a CGT event and therefore, CGT is applicable.
For further information on taxation responsibilities speak to a tax specialist or contact the 
Australian Tax Office.
*There are some exceptions to this rule.
Holding Administration Checklist
Have you:
- Included all relevant Estate documentation (e.g. Probate, Death Certificate, etc.)?
- Included all relevant forms (e.g. Transmission, 1017(b) statement, etc.)?
- Ensured that all documentation is certified as a true and correct copies?
- Ensured that each form has been duly signed by the authorised signatory of the Estate?
- Ensured that the Securityholder Reference Number (SRN) is quoted on each form?
- Included a separate Transmission/Transfer form for each class of security?
- Included a separate Transfer form each beneficiary