Inheriting 10.2 million stocks turns into a nightmare! A 52-year-old man had no time to cash out and suffered a huge collapse as the stock price plummeted
Family members with no investment experience have difficulty finding securities accounts, and the drop in stock prices has led to a significant reduction in inheritance.
Quick Look
- An 80-year-old man in Japan left behind stocks worth 50 million yen (approximately NT$10.22 million) after his death.
- During the inheritance process, his son, who had no investment experience, had to look for securities accounts opened by his father one by one.
- The drop in stock prices led to a sharp decline in assets, highlighting that the lack of prior arrangements for stock inheritance may become a burden to the family.
AI-generated summary
Why It Matters
With the popularity of online securities trading, more and more elderly people are buying and selling stocks through mobile phones. However, many elders did not tell their families which securities companies they opened accounts with or which stocks they held during their lifetime. Once they die suddenly, their family members may not even know where their assets are.
If stocks are not arranged in advance, the assets originally left to your family may end up becoming a series of tedious procedures and a heavy burden. (Diagram, Reuters)
[Financial Channel/Comprehensive Report] An 80-year-old Japanese man was keen on stock trading during his lifetime. After his death, he left stocks worth up to 50 million yen (approximately NT$10.22 million). Unexpectedly, this seemingly rich inheritance caused a headache for his son who had no investment experience. Not only could the stocks not be sold directly for distribution, but he had to search for the securities accounts opened by his father one by one. However, the stock price suddenly reversed and fell at this time. The wealth that should have given the family peace of mind turned out to be a hot potato on the road to inheritance.
Japanese media reports pointed out that with the popularity of online securities trading, more and more elderly people buy and sell stocks through mobile phones. However, many elders did not tell their families which securities companies they opened accounts with or which stocks they held during their lifetime. Once they die suddenly, their family members may not even know where their assets are.
A 52-year-old Mr. A (pseudonym), whose father made a fortune by investing in stocks during Japan’s bubble economy when he was young, regarded stock trading as the greatest pleasure in life after retirement, watching financial news every day, staring at the market prices on his mobile phone, and even frequently betting.
My father often opened accounts with different securities companies because of discounts on handling fees or bonus points for new accounts. Mr. A once asked his father which stocks he held and which securities companies he opened accounts with, but his father refused by saying, "I will decide my own life." He later stopped asking questions.
It was not until his father passed away at the age of 80 that Mr. A discovered that his mobile phone had a password and could not be unlocked. In addition, online securities companies rarely send paper documents, making it difficult for his family to have complete investment information. I finally found documents from a securities company, and after contacting them, I learned that stock inheritance is not like bank deposits. It can be sold directly in the deceased's account and the cash can be distributed to family members.
Generally speaking, heirs must first open their own account at the same securities company used by the deceased before they can transfer the stocks there; if they did not have an account originally, they must open a new account and go through relevant procedures.
After Mr. A applied for his father's asset balance certificate, he discovered that the stocks held by his father had increased significantly in recent years, and their market value had reached 50 million yen. Most of my father's savings have been used for daily life, and his main assets are concentrated in his own house and stocks. Considering the mother's future living expenses and the funds needed to pay inheritance taxes, the family had to consider selling some stocks.
However, neither Mr. A nor his mother had investment experience, so they had to find information about other securities companies, apply for asset certificates and go through the transfer procedures one by one. What's even more unfortunate is that while his family was busy handling the inheritance process, the stock price, which had been performing well, began to fall. Mr. A didn't know whether he should sell or when the time was right, which ultimately led to a sharp decline in assets.
The report pointed out that stock investment can be the fun of retirement life and can also accumulate wealth for the family. However, if no arrangements are made in advance, the assets originally left to the family may end up becoming a series of cumbersome procedures and a heavy burden.
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Open Questions
- Whether Mr. A finally succeeded in selling some of his shares
- How much inheritance tax needs to be paid
- Are there any other securities company accounts that have not been discovered?
