Transmission of shares with respect to Charitable Trusts
PROBLEM
There was a successful Businessman in the city of Chennai.
He brought various shares in his own name and in the name if his wife. In addition, there were lot of Real Estate Properties too.They had no children.
He died Intestate ( without leaving a will ). Over three decades back and the real estate properties were transferred in her name. She also obtained a Succession Certificate for the shares to be transferred in their name.
Transmission of shares have not even started and she took ill.
She wanted to have a trust in the name of her husband and herself and wanted to transfer substantial portions of the properties to the trust.
She made a will and named three executors to the will.
A trust was also formed, with her as a chairperson and the other three executors as trustees.
Soon thereafter, the Noble Lady died and the executors started the process of prorating the will.
The will was contested and the case prolonged infinitely and finally award came in favour of the executors.
Just before that we started resorting the shares. Meanwhile, one of the executors died.
SOLUTION
For starters, we approached the companies that did not require probate and shares whose value was less than the threshold limit of Rs. 2,00,000.
We established the fact that one of the executors was no more.
We opened a. Joint account in the name of the Executors as joint signatories. Here we had to overcome KYC Norms issue, since having KYC for ” Mr.ABC & Mr.XYZ, Executors to the estate of Is not easy.
Once it is opened, we filed all NECS forms so that substantial dividend started getting deposited into the account.
We also opened an identical DEMAT Account and we started dematerialising the shares.
These accounts have a life of only 6 months and within that period all receipts have to come in. There can be only one payment – Transfer to the trust at the time of closing the account.
We were able to time it out properly and completed the first leg of the project creditably.
