Liquidating inherited stocks receiving cash

You may also become liable for Capital Gains Tax if you later sell shares or a property you inherited ISA assets can be passed on to spouses or civil partners while retaining their tax-friendly status.

Inheriting an ISA from a spouse or civil partner means you are entitled to an additional allowance that will cover the value of your partner’s savings as well as your own.

You could retain the pot to supplement your own pension savings or use it like a savings account and draw income or lump sums when required.

If an inheritance leads you into a new world of investments it can be good to have an experienced guide by your side. Simply call us for advice on any aspect of inheritance or investment.

Stocks, shares in funds and ISAs are the most common.

You then need to decide what you will do with your new investments.

In fact, a liquidating trust can be a cost effective, simplified structure to wind down a solvent company and realize some value for stockholders.

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To many the words “liquidating trust” connote bankruptcy, but that need not always be the case.As a beneficiary you now either pay no tax if a pension holder dies before they turn 75.You will be charged interest at your usual income tax rate if they were 75 or over.The investments can be transferred directly without being sold.This is known as an in-specie (a Latin term meaning ‘in the actual form’.) transfer.

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