Families dealing with the probate process after a loved one’s death are facing significant delays when it comes to liquidating shares in British companies that have been acquired by American firms. The UK’s largest probate research firm, Finders International, reports that these delays can extend up to a year, creating a frustrating and prolonged experience for families trying to wind up estate administration. Ives & Co, leading solicitors serving Nottingham and Kent, can assist with wills and probate.
The issue primarily arises when dealing with shares from former UK public limited companies (plcs) that have been bought by US corporations over the last two decades. These companies include well-known names like Cadbury Schweppes, Pfizer, CRH, and Ferguson Plc. The complexity of transferring shares in these firms, which now fall under the jurisdiction of US transfer agents, adds a considerable amount of time to the process.
One of the main causes of the delay is the requirement for a Medallion Signature Guarantee Stamp, a standard practice in the US and Canada for authenticating securities transactions. This stamp is required to prove that the individual managing the estate has the legal authority to transfer shares on behalf of the deceased. Unlike in the UK, where no such guarantee is required, securing this stamp involves navigating stringent compliance requirements and providing extensive documentation, which can add weeks, if not months, to the probate timeline.
Over the past five years, a sample of 748 cases reviewed by Finders International highlighted the extent of the issue. Families who already face the emotional toll of losing a loved one now have to contend with unnecessary administrative delays caused by differences in financial regulations between the UK and the US. These delays can create financial hardship for families, especially if they are relying on liquidating assets to cover expenses.
While the probate process is already known to be time-consuming, the added burden of dealing with foreign financial institutions only complicates matters further. It’s essential for those involved in estate planning to be aware of these potential hurdles, particularly if they hold shares in companies that may be subject to US regulations. This awareness could allow families to seek professional guidance early, potentially reducing the impact of these delays.
