A Guide for Aging Investors and Their Families.
As individuals grow older, ensuring that their shareholdings are clearly documented and easily transferrable is an important part of estate planning. Unorganised or untraceable share portfolios can create unnecessary delays and stress for executors and beneficiaries. While a proactive review can make all the difference.
Identify and Consolidate SRN Holdings
Many shareholders still hold shares directly with registries under an SRN (Shareholder Reference Number). These issuer-sponsored holdings are often scattered across different companies, making them easy to overlook. They also require shareholders to update details separately with each registry, which is rarely done and can lead to missed dividends, returned mail, or lost shares.
To help, gather:
- Old dividend or holding statements
- Emails or post from registries (e.g. Computershare, Link Market Services)
- Tax return records of dividend income
Identifying and consolidating SRN shares early reduces the risk of holdings going missing and ensures everything is accounted for when it’s time to administer the estate.
CHESS-Sponsorship Makes Management Easier
Moving shares into a CHESS-sponsored account under a Holder Identification Number (HIN) consolidates all ASX-listed shares in one place. Managed through a broker, CHESS-sponsored holdings allow for:
- Centralised updates of address and bank details
- Easier reporting at tax time
- A clearer picture of one’s investments
- Simpler transfer or sale of shares in the event of death
This approach reduces the administrative complexity of estate distribution and reduces the risk of shares becoming lost.
Choose a Full-Service Broker Over an Online Platform
While online platforms may offer low-cost trades, they generally don’t provide the support needed to manage shareholdings in the context of estate planning. A full-service broker offers more than just trade execution.
- Personalised administrative support
- Experience with estate processes and share transfers
- Direct communication with share registries
- Guidance for executors and beneficiaries when the time comes to sell or transfer holdings
This level of support is invaluable when assisting older investors and their families. Full-service brokers can ensure shareholdings are structured appropriately now, and that help is available later when needed most.
Helping aging adults consolidate, verify, and properly record their shareholdings ensures that what they’ve worked hard to build can be passed on efficiently and according to their wishes. Encouraging a move away from SRN holdings toward a CHESS-sponsored structure and moving away from online brokers is often one of the most impactful steps, providing peace of mind to aging investors and their families.
DISCLAIMER: This Market update has been prepared by the Trading Desk and is not intended to be a research report. We believe this information is correct at the time of its compilation however no warranty is made as to its accuracy, reliability, or completeness. We cannot guarantee the performance or return on investments and those acting on this information do so at their own risk. The information is of a general nature, for the recipient’s information only and has been prepared without considering any particular individual’s investment objectives, financial situation or particular needs (“relevant circumstances”). Before acting on this information, you should carefully consider the appropriateness of it having regard to your own relevant circumstances and if you require advice regarding any aspect of the information and statements of opinion set out in this document, particularly as to whether you should base an investment decision upon it, please contact your financial adviser
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