NIB Shares Worth Keeping?

[Deactivated] on 28/01/2021 - 14:44
Last edited 28/01/2021 - 14:47

To keep it short FIL died with 3400 NIB shares in his name, solicitor is asking my wife if she wants him to sell them or swap to her mother's name who she has power of attorney over, she is in a nursing home with dementia. It's part of Probate.
We know she can sell them later with her POA as she already did some last year that were in her Mothers name, that were bought for our Son when he turned 21.

They have gone up a $1.50 this year, so sell now or keep? They were $8 18 months ago. The MIL doesn't need the money ATM. Should say she is 94 so who knows when they will have to be sold anyway.

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Comments

  • AngusD on 28/01/2021 - 15:09
    +15

    Word on the street (well, Reddit) is that you should sell it all and put the money into GameStop shares :P

  • Trance N Dance on 28/01/2021 - 15:52
    +2

    Check tax implications of both options.

    • [Deactivated] on 28/01/2021 - 16:50
      +1

      94 year old pensioner in a nursing home, no tax problem lol.

  • Seraphin7 on 28/01/2021 - 16:25
    +6

    From your post it seems that no one relevant to your situation seems to know a lot about shares/has an existing share portfolio, etc. In other words, you have this parcel of 3,400 shares (worth ~$20k) that has just landed in your lap that doesn't "fit in" with any other investment activities you've got going.

    Now, who knows what NIB might do over any period of time? Could go up, down, sideways, or around in circles.

    Given the above, I'd be tempted to look at the question from the other angle … if you were suddenly given $20k cash, would you buy NIB shares? Probably not based on the above assumptions (and without commenting on NIB specifically).

    Therefore, in your circumstance, I'd suggest cashing out and doing with the $20k whatever you would do with it if it came as cash in the first place.

    • [Deactivated] on 28/01/2021 - 16:56

      Yeah you are correct it was the FIL that was into shares. My wife and sister will be the beneficiary eventually so we are not sure to sell now or hang on as they may go up, they were worth another $9-10K 18 months ago.

      • Kangal on 28/01/2021 - 18:52

        Don't over-think it.
        Just sell it, then put the money into whatever/wherever you deem worthy.

  • brad1-8tsi on 28/01/2021 - 16:49
    +1

    A single company portfolio is high risk as it lacks diversification.

    I'd sell them and let the estate wear the CGT. A one off trade will be around $100.

    You could then gift the $20k to the child and have him buy $4k of AFIC every 2 months (until money is gone) with the dividends channelled through their DSSP. This will give you diversification and delay tax obligations.

    Yes AFIC trades at a premium to asset value. Yes, their fees aren't the lowest.

    Otherwise, buy VDHG.

    • [Deactivated] on 28/01/2021 - 16:53

      No one will be getting anything will just go into MIL bank account now, or they get sold when she goes as part of her estate.

  • TChalla on 28/01/2021 - 17:17
    +1

    If cash isn't needed just leave it, although Health Funds and Insurance Companies are shit businesses these days.

  • Elppa8 on 28/01/2021 - 22:13
    +2

    Having been through a similar situation the shares were sold while POA was in place as it ceases when the person passes and all accounts are frozen. You then have to provide documentation to each financial institution to recover assets and they all seem to have different requirements. So the less you have to deal with the better.

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