Mother-in-law's shares

[gordon2007]

The time has come to cash in my motherinlaws shares. She's had them since the early 90's. She is a self funded retiree and pushing 90 in a few months.

She suffers from alzheimers so doesn't even know she has them but due to medical bills adding up the funds will be required. Already have full power of attorney, so that part of it is OK.

Can I just transfer them to my etrade account? Also, what kind of taxes will she or I be hit with? It's roughly $150K of shares.

 

[jono1887]

The time has come to cash in my motherinlaws shares. She's had them since the early 90's. She is a self funded retiree and pushing 90 in a few months.

She suffers from alzheimers so doesn't even know she has them but due to medical bills adding up the funds will be required. Already have full power of attorney, so that part of it is OK.

Can I just transfer them to my etrade account? Also, what kind of taxes will she or I be hit with? It's roughly $150K of shares.

depending on when they were bought... but if they are old enough, you wont get his with CGT so it should be tax free. I think the date is July 1983, but check ATO

 

[gordon2007]

Was 1992.

 

[Knobby22]

Have you got power of attorney?

 

[gordon2007]

Already have full power of attorney, so that part of it is OK.

Have you got power of attorney?

Yes.

She's had them since the early 90's.

depending on when they were bought...

I appreciate these questions toward answering my questions...

 

[Knobby22]

Sorry.

You have to control the money seperately from your own. You do not want to be accused of anything. If your mother in law had a broker you should sell the shares into her account and pay bills from that account.

It is very dangerous to mix her shares with yours.

If not, I would use a discount broker and have them send a cheque which would go into one of her accounts which you can control.

Keep it at arms length.

 

[Julia]

Sorry.

You have to control the money seperately from your own. You do not want to be accused of anything. If your mother in law had a broker you should sell the shares into her account and pay bills from that account.

It is very dangerous to mix her shares with yours.

If not, I would use a discount broker and have them send a cheque which would go into one of her accounts which you can control.

Keep it at arms length.

I completely endorse what Knobby has said. Don't, under any circumstances, do what you originally suggested, i.e. transfer the shares into your name.

You should see a solicitor and arrange for a trust account in your MIL's name.
Or perhaps simply continue with your MIL's current account on which you just sign on her behalf, having presented the POA documentation to whomever needs to see this.
Initially you could discuss the situation with her bank and go from there.



The potential ramifications of putting the shares into your name are considerable. Don't risk it.

It's a sad situation.

 

[gordon2007]

Once the shares are sold I'd definitely be puting into her account. So basically we (partner and I) just open a simple discount broker under mum's name and then transfer funds into her bank account?

Thanks for the help.

 

[Julia]

That should be fine, Gordon. I'd still be making a quick phone call to a solicitor to check.

Also keep a journal type record of everything you do including what advice you have received, from whom, with the date.

When you are acting as Attorney for an impaired person, you just can't be too careful.

 

[jono1887]

Was 1992.

Generally, capital gains and capital losses from pre-CGT assets (that is, assets you acquired before 20 September 1985) are exempt. However, CGT event K6 can result in capital gains if certain CGT events happen to pre-CGT shares in a company or to pre-CGT interests in a trust. See Taxation Ruling TR 2004/18 - Income tax: capital gains: application of CGT event K6 (about pre-CGT shares and pre-CGT trust interests) in section 104-230 of the Income Tax Assessment Act 1997

http://www.ato.gov.au/individuals/content.asp?doc=/content/36568.htm&page=2&H2

 

[gordon2007]

Generally, capital gains and capital losses from pre-CGT assets (that is, assets you acquired before 20 September 1985) are exempt. However, CGT event K6 can result in capital gains if certain CGT events happen to pre-CGT shares in a company or to pre-CGT interests in a trust. See Taxation Ruling TR 2004/18 - Income tax: capital gains: application of CGT event K6 (about pre-CGT shares and pre-CGT trust interests) in section 104-230 of the Income Tax Assessment Act 1997

http://www.ato.gov.au/individuals/content.asp?doc=/content/36568.htm&page=2&H2

whoa...far too many pure blondes to even remotely comprehend. Will reread tomorrow. Cheers

 

[nunthewiser]

The time has come to cash in my motherinlaws shares. She's had them since the early 90's. She is a self funded retiree and pushing 90 in a few months.

She suffers from alzheimers so doesn't even know she has them but due to medical bills adding up the funds will be required. Already have full power of attorney, so that part of it is OK.

Can I just transfer them to my etrade account? Also, what kind of taxes will she or I be hit with? It's roughly $150K of shares.

to save any complications ......just deny all knowledge of her altogether and buy a nice boat

im sure she will thankyou for a nice putt up the river on sundays

 

[gordon2007]

Just trying to do some maths tonight on this. Just wondering if anyone can give a quick answer as to what will be the percentage of tax owed for capitol gains. Seem to be having a hard time finding this.

Have meetings with accountants later but just trying to get this answer tonight.

regards,