Valuing a deceased person's shares?

[rexeo]

My mother passed away on a Sunday in 2019. Can anyone please confirm the correct date to value her shares for cost base purposes as Saturday and Sunday the share market is closed. It is my belief that it should be the Monday following her death date. I am asking because according to my reckoning on the listing from the solicitors the value per share works out to be on the Friday before her death.

 

[explod]

Sunday's value is at the close of trade Friday's

Sorry for your loss, I lost my Mother just 3 days prior to last Christmas

 

[rexeo]

Thank you for the quick answer and I am sorry for your loss too. It seem's odd that the date should be the Friday when Mum was still alive. However that explains why the sums work out correctly to Friday's closing date.

 

[charlsie]

I'd be interested in the reason you're trying to establish the cost base. if it's for your tax purposes, you'd need to know the date they became yours. that's how i understand it

 

[Dona Ferentes]

If you're a beneficiary or legal personal representative, you acquire the asset on the day the person died. Capital gains tax (CGT) does not apply when you acquire the asset, it may apply if you later dispose of the asset. The date of the person's death may be relevant when you calculate the capital gain.

Page not found | Australian Taxation Office

www.ato.gov.au

 

[rexeo]

If you're a beneficiary or legal personal representative, you acquire the asset on the day the person died. Capital gains tax (CGT) does not apply when you acquire the asset, it may apply if you later dispose of the asset. The date of the person's death may be relevant when you calculate the capital gain.

Page not found | Australian Taxation Office

www.ato.gov.au

Dona, I understand about the CGT however as I could not find anything at the ATO or anywhere which advises the date the shares are valued at when sharemarket is closed on a Sunday. The listing provided by the solicitor has some shares when I calculated which worked out to be out to be at closing on the Friday and some working out to closing on the Monday. Hence the confusion.

 

[rexeo]

I'd be interested in the reason you're trying to establish the cost base. if it's for your tax purposes, you'd need to know the date they became yours. that's how i understand it

Charlsie, the date they become mine are at my mothers death date. The problem I had is when checking the share market closing price it didn't work out for the amount of shares I should receive. Explod has explained that the shares are valued at Friday's date which is a little weird as my Mother was still alive then. However my reckoning now works out, thanks to Explod's explanation.

 

[Value Collector]

Charlsie, the date they become mine are at my mothers death date. The problem I had is when checking the share market closing price it didn't work out for the amount of shares I should receive. Explod has explained that the shares are valued at Friday's date which is a little weird as my Mother was still alive then. However my reckoning now works out, thanks to Explod's explanation.

But any changes to the price of the shares that happened on Monday happened while you owned them, and technically the price didn’t change from Friday’s closing price until after the market opened on Monday, and when the market opened and the price changed, you already owned them.

So it makes sense that they using fridays closing price, after all if anyone had asked you on that Sunday what the shares were worth, you would have told them fridays closing price, not predicted what they would trade for on Monday.

 

[qldfrog]

Charlsie, the date they become mine are at my mothers death date. The problem I had is when checking the share market closing price it didn't work out for the amount of shares I should receive. Explod has explained that the shares are valued at Friday's date which is a little weird as my Mother was still alive then. However my reckoning now works out, thanks to Explod's explanation.

The value of shares in the weekend until Monday market opening is the friday close price.
Thereafter the valuation should be computed then,as per explod.
And sorry for your loss.