Stock markets, inheritance, i don't understand

Vlinty · 2025-04-05T09:55:38+00:00

My mother died in 2024 and father this March. Years before they had made me power of attorney (because my husband works in finance he is a lawyer, so could help me. I am clueless and they knew this.) After mum died, my DH took over, because my dad had dementia. He changed a lot of their funds over to higher risk , their financial advisor told me they had always wanted low risk. We sold the house and dh got me to invest with another fund manager. Take the money out of ns&I as well. So some money with new advisor, some with old advisor but all higher risk than my parents had it Now this morning he has told me that everything is down 25%.... obviously because the markets have plummeted following trump's tariffs. I am so distraught, I have 2 siblings who will want their share of the money. I'm really angry with dh and he now won't talk to mr because I'm panicking and he won't help me - just says I won't listen. When it is him who will not answer a straight question. Please help me calm down.

Negroany · 08/04/2025 02:34

It's calculated on the date of death for inheritance tax. But that doesn't mean that when you sell you get that price. You get the price the market is at on the date you sell. Noone is putting your money aside ready to pay to you when you get probate and can sell.

Houses are different, they are valued for inheritance tax, but if they sell for less you can get a rebate (and pay more if they sell for more, otherwise everyone would down value them). But stocks have a set trading price, houses do not.

ErrolTheDragon · 07/04/2025 22:49

EmeraldRoulette · 07/04/2025 22:29

Oh i thought the issue here was that the price would be calculated on the day of probate?

@Vlinty if I've understood it correctly, only cash what you have to and take the rest as investments that you cash in later on.

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https://www.gov.uk/guidance/valuing-stocks-and-shares-for-inheritance-tax

Valuing stocks and shares for Inheritance Tax

Find out how to value stocks and shares of someone who has died. How you value them depends on whether they are 'listed' or 'unlisted'.

https://www.gov.uk/guidance/valuing-stocks-and-shares-for-inheritance-tax

EmeraldRoulette · 07/04/2025 22:29

ErrolTheDragon · 07/04/2025 18:56

They may have to sell if there’s an inheritance tax bill unless they can pay that from other funds. And as I understand it, that bill is calculated based on prices at close of trading on the day of death. The same sort of problem can happen with property too of course.

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Oh i thought the issue here was that the price would be calculated on the day of probate?

@Vlinty if I've understood it correctly, only cash what you have to and take the rest as investments that you cash in later on.

LeopardPants · 07/04/2025 22:20

user746016 · 05/04/2025 14:29

We are in a similar position. We have about £400k waiting to be distributed. Asked the fund manager to cash it in three weeks ago. They failed to do so (said we needed to provide another copy of the executors signature for some reason). It’s now down massively.

We will probably try to transfer the stock so that it can just wait out. But that could take years.

Make sure the fund manager hasn’t messed up here - if they should have traded and didn’t, you might be able to get compensation out of them.

Original poster

Vlinty · 07/04/2025 22:15

I'm going to read all responses when I get home as I'm only on phone at moment and I hate using it.
I have borderline personality disorder (the 'quiet' kind) and i tend to think my first reaction to something is the truth.
So I can need help calming down, thanks to those who got it.

OP posts:

ErrolTheDragon · 07/04/2025 18:56

Doolallies · 07/04/2025 11:30

You haven’t lost anything unless you sell at a loss.

wait until it picks up again

They may have to sell if there’s an inheritance tax bill unless they can pay that from other funds. And as I understand it, that bill is calculated based on prices at close of trading on the day of death. The same sort of problem can happen with property too of course.

Negroany · 07/04/2025 18:35

Vlinty · 07/04/2025 10:52

Is this true?

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No

caringcarer · 07/04/2025 14:05

JHound · 07/04/2025 11:28

You can transfer share ownership. You don’t need to sell them to do that.

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But what if they don't want the shares in high risk shares? I still think.OP has overstepped unless she got agreement from siblings.

GasPanic · 07/04/2025 12:40

Despite all the hoo hah in the press I see the ftse 100 has only just reached a 1 year low.

JHound · 07/04/2025 12:12

rainbowunicorn · 07/04/2025 11:52

Did you not read any if the OPs updates where she clarified that her husband was asked to manage the portfolio by her parents and that it wasn't high risk it was low to medium.

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I did not read anywhere where she said they asked for him to move to a high risk strategy (which the financial advisors have clearly said they did not want) and OP has said she is dubious about his claim that it is in low/ medium risk investments.

rainbowunicorn · 07/04/2025 11:52

JHound · 07/04/2025 10:10

Did you not read OP?

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Did you not read any if the OPs updates where she clarified that her husband was asked to manage the portfolio by her parents and that it wasn't high risk it was low to medium.

LiquoriceAllsorts2 · 07/04/2025 11:43

JHound · 07/04/2025 11:41

I will base it on what OP has said, not whatever alternate scenario you would like to imagine.

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I based it on this:

My parents actively wanted my husband to do it, as they didn't think I could do it, nor my siblings sadly.

JHound · 07/04/2025 11:41

LiquoriceAllsorts2 · 07/04/2025 11:34

He was asked to look after it and we don’t know the details of what he was asked or not asked to do

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I will base it on what OP has said, not whatever alternate scenario you would like to imagine.

Brokeandold · 07/04/2025 11:37

“Money, money, money
it’s a rich man’s world….”
sorry you’ve lost your parents

endofthelinefinally · 07/04/2025 11:35

LiquoriceAllsorts2 · 07/04/2025 11:34

He was asked to look after it and we don’t know the details of what he was asked or not asked to do

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This.

LiquoriceAllsorts2 · 07/04/2025 11:34

JHound · 07/04/2025 11:29

But it was not their money - it was the parents investment and he changed the risk profile against their wishes.

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He was asked to look after it and we don’t know the details of what he was asked or not asked to do

Doolallies · 07/04/2025 11:30

You haven’t lost anything unless you sell at a loss.

wait until it picks up again

JHound · 07/04/2025 11:29

endofthelinefinally · 07/04/2025 10:59

Or maybe he was investing as it it was OP's and siblings' money.

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But it was not their money - it was the parents investment and he changed the risk profile against their wishes.

Everanewbie · 07/04/2025 11:28

Irrespective of DH's attitude to risk, a competent regulated financial adviser will have assessed the capacity for loss and timescale for investment and given that the intention was likely to distribute the assets to the beneficiaries within a reasonably short time scale, will have at least cautioned against excessive risk. Please locate the suitability reports you have been sent by these respective advisers and read them in detail. If they have not provided any commentary on assessing the risk then you may have some grounds for complaint and potential redress.

If this is the case, you must first complain to the advice firm. If you are not satisfied with the outcome, you may refer the complaint to the Financial Ombudsman Service free of charge.

I am sorry for this, but I have a bee in my bonnet about women being in the dark about finances, whether that be voluntary or not. We need to at least understand what is happening, and our views need to be taken into account. Even (maybe especially?) if our DHs have superior experience and industry knowledge.

JHound · 07/04/2025 11:28

caringcarer · 07/04/2025 11:11

But won't the siblings want their share? She can't hang on to it for years until the shares regain their value. She made a stupid decision to take investments out of safe areas like gilts and put into risky areas.

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You can transfer share ownership. You don’t need to sell them to do that.

caringcarer · 07/04/2025 11:16

GasPanic · 07/04/2025 11:14

I checked some of my this morning and the stock market is only down to where it was one year ago. I guess if you went for higher risk investments it could be a lot more than this, but standard trackers I doubt it would be much more.

The problem with this sort of stuff is it is a thankless task. Rellys would be all too happy to take the profits if investments go up, but then moan like hell if they go down.

And that's exactly why dh should have left them as parents invested them. Then siblings could not complain. Leave them unless discussing with siblings first and getting their agreement to put them in high risk pots.

GasPanic · 07/04/2025 11:14

I checked some of my this morning and the stock market is only down to where it was one year ago. I guess if you went for higher risk investments it could be a lot more than this, but standard trackers I doubt it would be much more.

The problem with this sort of stuff is it is a thankless task. Rellys would be all too happy to take the profits if investments go up, but then moan like hell if they go down.

LiquoriceAllsorts2 · 07/04/2025 11:12

caringcarer · 07/04/2025 11:11

But won't the siblings want their share? She can't hang on to it for years until the shares regain their value. She made a stupid decision to take investments out of safe areas like gilts and put into risky areas.

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People need to stop saying it was a stupid decision. Without the details we don’t know that.

The siblings will receive their share in the form of shares and can then decide what they do with them.

caringcarer · 07/04/2025 11:11

JHound · 07/04/2025 09:49

The loss only crystallises when they sell. I “lost” a lot on my super, pension and share portfolio when Covid hit. The value is back up now. No loss to report

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But won't the siblings want their share? She can't hang on to it for years until the shares regain their value. She made a stupid decision to take investments out of safe areas like gilts and put into risky areas.

LiquoriceAllsorts2 · 07/04/2025 11:11

JHound · 07/04/2025 10:10

Did you not read OP?

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Yes I did.
the opening post said higher risk not high risk.
the 5th post said it’s actually low/medium.

higher does not mean high, especially if the starting point was very low.