The Two Routes for Estate Shares

One point saves most executors a wasted fortnight: a share registry does not sell shares, so a sale never begins with a registry form. Computershare says exactly that on its own Australian checklist and refers sellers to a broker instead.

Two routes lead out of a deceased holding, with one optional step in between:

• Transfer to a beneficiary. A Standard Transfer form moves the holding into the beneficiary’s own name, intact and unsold
• Sell through a broker. The estate receives cash, the beneficiaries receive money rather than stock, and the proceeds fall into the estate
• Transmit first, then decide. A Transmission Application registers the holding in the executors’ names with an estate designation, which parks it while you work out the rest

Joint holdings sit outside all of this. They pass to the surviving holder rather than into the estate, so a certified death certificate and a surviving-holder form finish it.

Which route fits depends on the will, the beneficiaries and the numbers.

Transferring the Shares to a Beneficiary

Three beneficiaries who each take a slice of twelve holdings need thirty-six transfer forms between them, not twelve. That arithmetic is what makes a diversified portfolio slow.

MUFG Corporate Markets spells the rule out in its individual holding checklist: separate transfer forms are required for each beneficiary and each share company. Beneficiaries who agree to hold jointly need one form, though still one per company.

You do not have to transmit the holding into your own name first. MUFG states that expressly, so a Standard Transfer form moves shares straight to the beneficiary named in the will.

The mechanics are unforgiving in three specific ways:

• Forms must be originals with original ink signatures, because Computershare rejects a copy, fax or email
• The original share certificate must accompany the form where the holding is certificated
• Supporting documents must be originally certified copies, not photocopies of a certified copy

The beneficiary receives the stock and the tax history attached to it. Give them the deceased’s acquisition date, cost base and date of death value, which they will need when they sell.

Selling the Shares from the Estate

Selling looks simpler than transferring, and in paperwork terms it is. There is no per-beneficiary form set and no certificate to chase for every company, because the registry forms do not come into it.

A sale goes through a broker, not the registry. Computershare’s Australian checklist puts it plainly: transmission or transfer of securities is not required prior to sale. MUFG says the same about a transfer to a beneficiary, so the transmission step is optional rather than compulsory.

How the sale runs depends on how the shares were held. The ASX fact sheet on CHESS and issuer sponsored holdings explains that a sponsoring broker controls a CHESS holding, so one broker handles the portfolio. An issuer sponsored holding carries a separate SRN per company, and the broker must convert it to CHESS to settle the trade, currently on a two-business-day cycle.

Timing is the part executors underestimate. The market keeps moving while the estate stays open, and holding rather than selling is still a decision you may have to explain later.

More: Can You Sell a Deceased Estate Property Before Probate Is Granted in NSW?

Transfer or Sell? The Decision That Actually Matters

Two executors with identical portfolios can hand beneficiaries very different net outcomes, and the difference is not the forms. It is where the gain lands.

The Australian Taxation Office states that the legal personal representative disregards a capital gain or loss where an asset owned by the deceased passes to a beneficiary. Where the representative sells instead, CGT applies on that disposal under the normal rules.

The ATO’s own worked example is this decision in miniature. Maria left 2,000 shares and a block of land, her executor sold the shares to pay debts and transferred the land, and only the share gain went into the estate’s return.

Several things beyond tax properly influence the call:

• Whether the will gifts the shares specifically or leaves them in the residue
• Whether debts and legacies need cash the estate does not otherwise have
• Whether beneficiaries want stock at all, and whether the parcel divides evenly
• Franking credits on dividends the estate receives after the date of death
• Market exposure for as long as the holding stays in the estate

Subject to the will, the call is yours. Consult the beneficiaries and record your reasons in writing before you act.

When You Do Not Need a Grant of Probate

Probate is not always required to deal with shares. The Supreme Court of NSW states there is no statutory requirement to obtain probate in every case, and suggests approaching asset holders to see whether they will transfer assets on the death certificate, the will and a declaration of entitlement or an indemnity.

Both major share registries publish a threshold that does exactly that:

• Computershare (Australia): AUD$50,000. Below it, a death certificate, the will and a completed Small Estate Indemnity form replace an Australian grant of probate
• MUFG Corporate Markets, formerly Link Market Services: $15,000. Its Small Estate Statement and Indemnity applies where the value is under the threshold, tested on the market value at the date of death or the current market value, whichever is greater

MUFG also notes that some issuers may elect a higher threshold. These figures are set by the registries, not by legislation, so they can change. Confirm the current figure with the registry holding that parcel before you rely on it.

More: Do All Wills Have to Go Through Probate in Australia?

What the Share Registry Will Ask For

Order more certified copies of the grant than you think you need, because Computershare wants separate forms for each security holding and asks you not to send original legal documents at all. It requires originally certified copies of probate, the death certificate and the will.

Certification must come from someone authorised to witness a statutory declaration, such as a justice of the peace, a chartered accountant or a police officer. MUFG also warns that a Medical Certificate as to the Cause of Death will not be accepted.

Two extra documents catch executors out:

• A Section 1071B Statement, where the grant was made in an Australian state other than the one the securities are registered in
• A Section 121A Registrar’s Certificate of Disclosure from the Supreme Court of South Australia, where the grant is South Australian

Whether you write to the registry or the broker first depends on the holding. An SRN points to the company’s registry; a HIN to the sponsoring broker.

Capital Gains Tax on Inherited Shares

Inherited shares arrive carrying the deceased’s tax history, which executors often discover too late. According to the ATO, the beneficiary’s cost base is generally the deceased’s cost base for shares acquired on or after 20 September 1985, and the date of death market value for shares acquired before it. A date of death valuation is therefore an early job.

One change ahead matters here. The ATO states that the Government announced capital gains tax reforms on 12 May 2026 in the 2026-27 Federal Budget, that these measures are now law, and that from 1 July 2027 the 50% CGT discount for individuals, trusts and partnerships is replaced by cost base indexation and a 30% minimum tax rate on capital gains. The ATO also states the reforms will only apply to gains that accrue after 1 July 2027.

This is estate law, not tax advice. Put the numbers to a registered tax agent before committing either way.

How Empower Probate Lawyers Can Help

Share portfolios are where estate administration quietly goes slow. Multiple registries, multiple form sets, thresholds that differ, and a decision beneficiaries will scrutinise long afterwards. MUFG’s rules do not allow a holding to stay registered in a deceased person’s name, so doing nothing is not an option.

Empower Probate Lawyers acts for executors across NSW on applications for a grant of probate, on the scope of executor duties when assets have to be realised, and on deceased estate property alongside shares. If your grant has already been issued, our guide to what happens after probate sets out the administration that follows.

Call 1300 481 161 for an initial consultation. Specialist advice. Free initial consultation. Deferred fee arrangements are available in eligible cases.

Frequently Asked Questions

Do I need probate to sell or transfer shares in a deceased estate?

Not always. The Supreme Court of NSW states there is no statutory requirement to obtain probate in every case, and both major registries act below a published threshold on an indemnity.

Is the small estate threshold the same at every registry?

No. Computershare (Australia) uses AUD$50,000 and MUFG Corporate Markets uses $15,000, with some issuers electing a higher amount. Confirm the figure with the registry holding that parcel.

Should I transfer the shares to beneficiaries or sell them and distribute cash?

That depends on the will, the beneficiaries and the tax outcome. Transferring keeps the gain out of the estate return, while selling raises cash for debts and ends the estate’s market exposure.

Do I pay capital gains tax when I transfer shares to a beneficiary?

Generally no. The ATO states the legal personal representative disregards a capital gain or loss where an asset passes to a beneficiary, though a later sale by that beneficiary can be a CGT event.

What price do I use, the price on the day they died or today’s price?

Both, for different purposes. MUFG tests the date of death or current value, whichever is greater. Computershare tests the value of the security holding, and the ATO uses the date-of-death value for pre-1985 parcels.

What is the difference between CHESS sponsored and issuer sponsored shares?

A CHESS holding uses one HIN across the portfolio and is controlled by the sponsoring broker. An issuer-sponsored holding uses a separate SRN per company, administered by that company’s registry.

How long does it take to transfer shares out of a deceased estate?

The ATO says finalising a deceased estate typically takes 6 to 12 months, and longer is common. A probate application filed more than 6 months after death needs an explanation to the Court.

What happens to shares held in joint names?

They pass to the surviving holder. MUFG notes the Corporations Act 2001 recognises only the surviving joint holder as entitled to the deceased’s interest, so a death certificate and a surviving-holder form complete it.