💀 What happens to your account if you die? 💀

[RumNCoke (Samantha Eaton)]

Hi

Slightly strange question I know but I work for a share registrar in the UK and was wondering what happens if a freetrade customer passes away?

[Dave (Dave Smith)]

What happens to your account if you die?

This might seem a morbid question but I think we need to know this as well. When you die, what happens to your account (be that ISA or non-ISA)? Does Freetrade close the account and sells the shares? Does it let the shares sit and sell when they receive a sell order from the family? Given that FT is a mobile app, families will probably not always know that the person had a shares account.

[Lynnzer (June Robson)]

Yeah. I have been thinking about this too.
75yrs old and want to plan these sort of things

[Eddie_D (Edward R Davies)]

Good Question.
What is the process in this scenario?

[Eden]

It seems like at the moment the only option they provide is to close the account (and presumably sell the assets into cash). But they have no public policy so like other brokers, so you’ll have to ask them and plan accordingly

[bitflip]

@eden

There are specific UK rules around death and ISA’s

Individual Savings Accounts (ISAs)

Of course if the executor of your estate does not approach Freetrade then Freetrade will not know. Having said that, the government may inform Freetrade that the ISA is invalid as the HMRC may become aware (NI etc) and the ISA would then be appropriately closed. In the case of banks there is usually a Dormant accounts policy. Naturally the details and laws will all depend on the relevant country. To take an example, I had a stockbroker account in the USA which I had not touched for several years. I got a letter after X years (I think it was 7) telling me that if I did not do anything with the account by date Z then the contents would go to the state.

[Eden]

Yeah no one’s suggesting they won’t follow the law. But they have no public policy or process on deaths. The only hint seems to suggest that they will simply close the account and sell the assets, there are other allowed options like transferring ownership. But it doesn’t appear that Freetrade support this. But without a public policy there’s no definitive answer.

So I think the best thing to do is ask freetrade individually in writing and plan according to their response.

[bitflip]

Neither did I presume nor suggest that they wouldn’t follow the law. I was merely adding some specific information to the conversation that hitherto not appeared in this thread that I thought some people following the thread might be interested in.

My personal opinion is that if people have not already done so they update their wills and/or advise relevant people of the existence of all their (relevant) internet accounts (be they Freetrade or otherwise).

[AdamL (Adam)]

What happens to your account if you die?

This might seem a morbid question but I think we need to know this as well. When you die, what happens to your account (be that ISA or non-ISA)? Does Freetrade close the account and sells the shares? Does it let the shares sit and sell when they receive a sell order from the family? Given that FT is a mobile app, families will probably not always know that the person had a shares account.

[Kiava]

Slightly Comcial when someone links a thread where it’s talked about and others continue to talk asking questions which have been talked about in said thread which was linked.

[Rich1 (Richard Arden)]

Any update to this thread?.

[Martc17]

Does anyone knows what happens to our shares if a sudden death occurred.What would happen to the shares I hold in my name and would my family be able to get hold of them without too much trouble. It’s a legitimate question which my son asked as we are flying on hols tomorrow and I don’t know the answer to. !!?

[scudulike (Stu)]

This is discussed on another thread:

What happens to your account if you die?

This might seem a morbid question but I think we need to know this as well. When you die, what happens to your account (be that ISA or non-ISA)? Does Freetrade close the account and sells the shares? Does it let the shares sit and sell when they receive a sell order from the family? Given that FT is a mobile app, families will probably not always know that the person had a shares account.

[bitflip]

We have requested a formal answer for this - if you are a plus/standard subscriber ping support for a quicker response.

In the interim note 💀 What happens to your account if you die? 💀 - #87 by bitflip and especially the final paragraph in 💀 What happens to your account if you die? 💀 - #89 by bitflip.

I expect the actual transfer would follow normal UK procedures for transfer of property in these circumstances.

Have a great holiday.

[Coolsmp (Investor R7)]

Make a will and stipulate your assets and who you would like to be a beneficiary.

[Martc17]

Thanx for reply, hope a proper procedure developed for this purpose to help everyone on this platform .

[Martc17]

Yes that’s ok, but you shouldn’t have to change your will every time you gain or sell shares etc should be provision to deal with it on here and make process easy for ones left behind

[TheRaven (John)]

How your family/beneficiaries can have access to any of your assets after death will depend on the legal framework where you live.

In the UK, you should always make a will stipulating who gets what. If you don’t make a will in the UK, intestacy rules apply (with possible variations in each of the 4 nations of the UK).

Intestacy - who inherits if someone dies without a will?

I used to work for a building society, and on too many occasions saw the huge problems/heartache families/friends had sorting out disposal of assets when someone died without a will.

[TheRaven (John)]

You don’t have to change your will every time - you just need to say who gets the monies. (Unless of course you want to be pretty specific; Auntie Mary gets my Lloyds shares, cousin Mike gets my Avivia shares etc.) And Freetrade will only be able to deal with the executors of the estate, and will have to follow due legal process in the unfortunate event of one of their investors’ deaths.

Freetrade can’t make up the rules to suit either investors or itself; it has to operate within the legal framework of the jurisdiction in which the investor resided.

[NeilB]

You can make any stipulation you like in a will (within reason)

I leave the value of all my Amazon shares to X

Or

I leave my portfolio value 50% to X & 50% to Y.