DEALING WITH OVERSEAS SHARES

RAISE YOUR hand if you’ve ever had to deal with the transfer of ownership of shares traded on the American or Canadian stock exchanges. Keep your hand raised if you found it as straightforward as dealing with shares traded in London. In the unlikely event that anyone still has a hand aloft, please put it down. The fact is, dealing with overseas transfer agents and tax authorities can be very time-consuming and extremely frustrating – if you don’t know your way around the system.
Different jurisdictions have their own requirements, some more onerous than others, and the US and Canada seem to cause the uninitiated the biggest problems. Take the US: there’s quite a bit of paperwork to do. Allowing for the vagaries of the system, and assuming there’s no US tax point to address (see below), the stock should easily be transferred in eight weeks, 12 at the outside.
Assuming the US portfolio is correctly and completely identified (see ECA December 2007), you will need the shareholder’s death certificate and a court sealed copy of the grant dated no later than the transfer agent’s requirements – if the grant is older than 60 days, some transfer agents will regard it as out of date and reject your bundle. To be safe, it makes sense to have it exemplified. You’ll also need the share certificates, unless you’re dealing with a dematerialised holding, in which case you’ll need a stock power. The reverse will need to be completed and have the ‘barcoded medallion guarantee’ affixed. Once you have your notarised affidavits (i) of domicile and (ii) that the entire US estate did not exceed US$60,000 at the date of death, you’re nearly there. Obtain and complete form W-8BEN and, if the US estate was over US$60,000 at the date of death, form IRS 706NA (a statement of assets comprised in the US estate, relevant value at date of death and tax payable to the IRS). This can cause the unwary difficulties because, assuming IHT has been correctly paid in this country (and the grant is evidence), and your deceased is eligible to be brought within the terms of the dual taxation treaty between the US and these shores, the 706NA can be treated as a nil return - although it still requires completion.
And that’s more or less it - if you need help, with the US, Canada or any other jurisdiction, please get in touch. We’ll gladly assist.

Adrian Tindall, case consultant at Title Research, specialises in overseas asset repatriation.

You can contact Adrian on 020 7549 0982 or at adrian.tindall@titleresearch.com. Title Research, 24 Britton Street, London, EC1M 5UA or DX 53347 CLERKENWELL. T: 020 7549 0900 F: 020 7549 0949 www.titleresearch.com