Share advice

BobLoblaw77

My parents have asked me could they transfer shares to my name that are held with Davy stockbrokers. They are being hit for 50 euro a year fee to manage the shares, but the shares themselves have been a disaster. Do you know how easy it is to transfer ownership of these and also whether there is a penalty involved?

I have shares also for the same company, and I manage mine through Etrade. I get the management fee taken care of for these by the company I work for. Is it also possible to transfer them from Davy's to ETrade. If so, any penalty involved?

Thanks for your assistance. I'm a bit clueless on Shares, and it would be one less thing for my parents to worry about at their age. I'm looking at actually selling them but want to do it under my own account. This way, I can sell their shares and some of mine and make up some of the difference in what they've lost.

strmin

If you want to sell those shares why bother paying transfer fee?
http://www.davy.ie/Generic?page=commissionsandchargesroi

BobLoblaw77

strmin wrote: »

If you want to sell those shares why bother paying transfer fee?
http://www.davy.ie/Generic?page=commissionsandchargesroi

If they sell them at the moment, the payout goes directly to them. The reality of the loss they've made is then very apparent and they'll refuse for me to take up any of the loss. If I transfer to myself, I can then sell some and make it less obvious as to how much I've sold. They bought IR£5k at the time. I would guess at the moment that they shares are worth about €2k.

The more I type, makes it sound like I'm trying to rob from them

I know people will say that they took the chance, and it backfired so they should live with the consequences. That may well be true, but I still feel guilty as I agreed at the time that it would be a good investment. They started to go down immediately though. They aren't aware of how much has been lost on them.

From the above link, if I transfer them and don't have an online account, I'm paying 100 euros? And if I then sell them, I'm paying another 100 also?

Thanks for replying

soddy1979

I don't get how your parents don't know that they have lost so much money, but they do realise they pay E50 per annum in fees. Surely, both figures come on the same annual statement.

You shouldn't conceal losses because you feel bad about it. There are so many examples of this in recent history, and it is one of the reason financial services gets such a bad name with retail investors.

BobLoblaw77

soddy1979 wrote: »

I don't get how your parents don't know that they have lost so much money, but they do realise they pay E50 per annum in fees. Surely, both figures come on the same annual statement.

You shouldn't conceal losses because you feel bad about it. There are so many examples of this in recent history, and it is one of the reason financial services gets such a bad name with retail investors.

They normally show me all the stuff they get from Davy's. I've not seen any annual statement. I've seen the mail that comes asking for the management fee. As the years go by, this becomes more difficult for them to pay.

I know what you're trying to say about concealing, but I think there is a bit of a difference in what I'm trying to do and what members of the financial sector were doing to people.

Basically, I'm trying to get rid of this worry for them. They're not that well off and as most parents don't want to take charity even though they would deserve it 10 times over. They know that they are going to make a loss. That's pretty obvious after the way the stock market has tanked in the last number of years. I'm trying to limit the loss but to a level that they won't think is taking charity. They genuinely have no idea what the shares are worth now at the moment.

BobLoblaw77

Leaving aside why I'm actually doing this..

What do I need to do, to transfer shares from Davy's so that they appear under my account in E-Trade. I have no idea how to do this and any help would be most appreciated.

panacea

Can you transfer some of your shares in the company from your etrade to your parents Davys account (at zero sale proceeds) then sell the entire lot. Same outcome and perhaps a lower cost option since your brokers fees sound cheaper. If the shares are down in price since you bought them then you dont have to worry about crystallising a profit liable to tax for yourself .... not sure on the implications for your folks but I think that there is an annual threshold of gifts for about 3k or something so for the amounts you seem to be talking about there is probably no tax liability for them either.

BobLoblaw77

Hi Panacea. Thanks for the advice. It was something that I hadn't considered but is pretty much the same thing. I know that I can't transfer shares over to my etrade account as they don't allow that. My company has to allow it, and they've put a ban on transfers into that etrade account unless you live in the US.

I've contacted Davy's to see can I transfer the shares over to my name and pay the management fee. At this stage I know I have to pay it but I don't mind so long as my parents don't.

Thanks for your reply though. Really appreciate it. Was glad that I didn't have to explain my reasons for doing this again. I think it's pretty much explained by now anyway

hmmm

It's a nice thing you're trying to do, unfortunately it sounds a bit complex. There's probably easier ways to slip your parents a few pounds.

One thing to consider is the CGT writeoff, would they have any shares which are in profit and can go against this?

BobLoblaw77

All the shares are for the same company and are about 1/4 of the price at which they were when they were purchased. The currency exchange rate is against us as well.

I've spoken to Davys and the costs of transferring them over (which would be selling them, buying them again using the cash) would make no financial sense whatsoever. The entire process of what I want to do would end up costing about €400 or so euros.

Ideally we'd just like to get rid of the shares as each year the management fee costs over 50 euro. The shares themselves are a mess. Looks like I'm just going to offer to buy half the shares at the price they cost them, and hopefully they accept. Provided they do, and I can pay the management fee each year I'd be happy enough. I'd look at getting them to sell the shares then in the next 12 months which would make up some of the deficit.

Thanks for your help on this.