Stock market guys. Boieng stocks, and death

WolfeMacleod · 03-03-2007, 08:57 PM

Gota question about stocks, stock sales, and death.
My grandmother passed away in October, on the 6th.

She had stock in Boeing, from when my Grandfather worked there. Almost his entire lfe.

120 stocks, apparently.

Family attorney sold the stocks at the value they were at on the date she passed away. $87.
When they were sold, the stock was at $93.

Is this the way it is? Selling at lesser value when a stockholder dies??

Scooter · 03-03-2007, 09:08 PM

Wolfe, call me tomorrow...or now.

WolfeMacleod · 03-03-2007, 09:09 PM

Quote:

Originally posted by Scooter
Wolfe, call me tomorrow.

PM me your number please.

Scooter · 03-03-2007, 09:10 PM

Thought you had it. PMing now.

rick-l · 09:32 PM

Quote:

Originally posted by WolfeMacleod
Gota question about stocks, stock sales, and death.
My grandmother passed away in October, on the 6th.

She had stock in Boeing, from when my Grandfather worked there. Almost his entire lfe.

120 stocks, apparently.

Family attorney sold the stocks at the value they were at on the date she passed away. $87.
When they were sold, the stock was at $93.

Is this the way it is? Selling at lesser value when a stockholder dies??

I don't do taxes and this is not advice but here is what I would think would happen.

You inherited the stocks at $87 / share Your cash basis is $10440

You sold the stocka at $93 / share and got $11160 of which you will owe capital gains tax on $720

edit didn't read the price

WolfeMacleod · 03-03-2007, 10:19 PM

Quote:

Originally posted by rick-l
I don't do taxes and this is not advice but here is what I would think would happen.

You inherited the stocks at $87 / share Your cash basis is $10440

You sold the stocka at $93 / share and got $11160 of which you will owe capital gains tax on $720

edit didn't read the price

Ahh, that should be the case, but they were told they could not sell it for more than it's value when it was inherited. Which is why is was sold, and not held onto. No capital gains...

widgeon13 · 03-04-2007, 02:55 AM

That is the craziest thing I have ever heard, fire the attorney and accountant. The stock could be held by the heirs and the only thing they needed to do was establish the purchase price when they sold it so they could pay cap gains as has been mentioned. There was no need to sell the stock at the grandmother's death.

competentone · 03-04-2007, 06:37 PM

Quote:

Originally posted by widgeon13
That is the craziest thing I have ever heard, fire the attorney and accountant. The stock could be held by the heirs and the only thing they needed to do was establish the purchase price when they sold it so they could pay cap gains as has been mentioned.

I'd agree. Talk to another attorney about a malpractice suit against the attorney who "sold" the stock below market value -- If what you've relayed is in fact an accurate description of what happened -- I'm wondering if you've gotten it wrong. If what you say is right, I'd bet the attorney has "pocketed" some money on the sale!

Quote:

Originally posted by widgeon13
There was no need to sell the stock at the grandmother's death.

If the grandmother's will had directed that the stock be sold at her death and the proceeds distributed among the heirs the stock sale would have been correct, but it would have sold at the current market price.

competentone · 03-04-2007, 06:59 PM

Quote:

Originally posted by WolfeMacleod
She had stock in Boeing, from when my Grandfather worked there. Almost his entire [life].

120 stocks, apparently.

Another thought too, were these shares held in a brokerage account by your Grandmother, or did your Grandmother possess physical stock certificates?

Boeing has gone through a number of stock splits over the years, if she had physical certificates that were not split adjusted, she may have in fact owned a lot more than 120 shares! (Those 120 pre-split shares would be worth a whole lot more. If they were pre-split shares, your attorney is going to jail!)

A simple chart of Boeing showing the splits:

http://finance.yahoo.com/q/bc?s=BA&t=my&l=on&z=m&q=l&c=

overman · 07:57 PM

This would certainly make you wonder...

You do need to investigate the transaction and make sure it all adds up. Ask the attorney for a copy of the Confirmation statement of the sale. Ever sale generates a statement.

This document would help you understand the details of the transaction and include the CUSIP#, etc. You need the CUSIP# if you want to contact the agent / bank investor services group... The holding bank could validate the total numbered of shares owned in this account to include any dividend re-investments, etc.

edit: +1 competentone's comments.

Contact the banking agent.

WolfeMacleod · 03-05-2007, 12:16 AM

Thatnks guys, and thanks for the Stock Split chart. I had told my mother about Splitting, and she kinda guffawed at me about it.

I don't know whether she had physical possesion of the certificates or not, but I'll find out.

I gather she's had them since the time my Grandfather passed away, arround 1990 as I recall.

pwd72s · 03-05-2007, 10:04 AM

Do some homework Wolf...the posts above are spot on. If this attny. played it fast & loose, he should be brought before the bar assn. of your area...and possibly be subject to criminal charges.

competentone · 04-11-2007, 08:36 AM

I just wanted to bump this up.

Wolf, I'm curious if you looked into this more and what happened?

WolfeMacleod · 04-11-2007, 08:55 AM

Quote:

Originally posted by competentone
I just wanted to bump this up.

Wolf, I'm curious if you looked into this more and what happened?

Ahha. Everything appears to be like it should be.

Her house was just sold...way below market value. My family is filled with idiots.