Q&A: Should I sell Vodafone shares I had forgotten about?

I have received my Computershare Dealing form for Vodafone. Totally forgot I had these (343 shares). I know nothing about shares. Would you have any advice? Should I sell or keep them?

Ms S.R., Dublin Well, the good news is that you have more than €900 that you had totally forgotten about – and you won't have to pay any tax on that money as Revenue has calculated you are still making a loss on what sounds to me like an original investment (in Telecom Éireann) over 16 years ago.

The precise amount you get will depend on the share price on the day the shares are sold and the foreign exchange rate between sterling and the euro at that time but, roughly, as of now, it would be €920-€925.

The share price has been dropping recently which hasn’t helped, but Vodafone won’t start selling shares until Tuesday, February 23rd (and every Tuesday and Thursday thereafter until May 24th), so the price might have improved again by then.

My answer thus far probably gives you some sense of my advice on your second point. Leaving aside the investment case for or against Vodafone, you have totally forgotten you ever had the shares and thus, understandably, have taken no interest in their value or the issues affecting the company.

As a general rule, if you are going to invest in a specific company, it’s a good idea to keep on top of it. In any case, if this is your only market investment – and an accidental one at that – and by your own admission you know nothing about shares, you’re probably best advised to sell.

One more thing. If you hold these Vodafone shares as a legacy of an investment by you, or on your behalf, in the Telecom Éireann flotation – and 343 is a "magic" number that indicates to me that you do – you probably also have a few shares in a US telecoms company called Verizon. It is also offering a low cost selling option at the moment – one that closes on February 17th (that's tomorrow week).

Failure to meet this deadline could see you facing significantly higher trading and administration costs on those shares. If you’re not sure you own Verizon, or have no share certificate to hand you could ring the Computershare Verizon helpline at 01 6968421.

Where do I send share form to?

I am sorting out my 85-year-old father’s shares. I know it’s near the deadline for sending back the share dealing form but I am unclear what address I am to send the form back to.

In the pile of letters he gave me is a self addressed envelope with an Irish address to Computershare ( P O Box 11838, Business Reply, Dublin 18).

I rang the Irish dedicated help line and they gave me a different address in the UK, (Corporate Actions, Bridgewater Road, Bristol BS99 6AU). I am concerned about which address is correct as previous self-addressed envelopes for Computershare were never received or acted on.

On a similar topic (but maybe for another day), my mother also owned Verizon shares, but she has recently died and we will not be able to transfer them into my father’s names in time to sell (delay in probate). Will I have to communicate with the share register in the US to transfer into my father’s name and sell ? Will this be difficult and costly?

Mr A.G., email

There’s nothing like being presented with an extensive and disorganised investment file by a family member with a deadline looming, is there? Still, people are often very confused by all the communications they receive from companies or funds in which they have invested – and the older we get, the more confusing it all seems.

On the first issue, the answer is that you us the business reply envelope with the Irish address – P O Box 11838, Business Reply, Dublin 18.

This is the address for Computershare Investor Services (Ireland) Limited, whose offices are at Heron House, Corrig Road, Sandyford Industrial Estate, Dublin 18. Assuming you rang the dedicated helpline number in the Verizon documentation, I have no idea why you were told to mail anything to Bristol as that runs directly counter to the arrangements put in place by Computershare.

The Dublin office is being used specifically because of unexplained problems for Irish shareholders in getting their instructions through to Bristol in a previous return of value to shareholders involving Vodafone, a company your father is probably familiar with as I assume his Verizon holding's origins date back to an investment in the flotation of Eircom. Indeed, that may be where the UK addressed envelope you have in that pile of papers comes from.

As for your mum – It’s never easy when you have to sort documentation in a rush after a loved one dies. And the law is not known for being a very flexible creature.

I have come across several different interpretations. Most (cautious) voices advise no shares can be sold before probate is granted.

A few others suggest that as executors are acting essentially as trustees of the estate, they are supposed to act in the best interests of the beneficiaries. In that sense, selling the shares would be fine as long as the proceeds are not distributed prior to the grant of probate. In general, the advice is also to check with beneficiaries in writing to ensure they are happy with this course and will not later challenge any such sale. If your dad is the beneficiary, this should be straightforward enough.

I see nothing wrong with selling the shares – though I have no doubt I will receive several representations advising me otherwise. From an executor’s point of view, delaying will burden the estate, or the eventual beneficiary, as you will incur potentially significant additional costs for no good reason once management of Verizon shares moves to the US.

No one is being cheated. The shares are hers (now her estate’s), any taxes due will be paid, and the beneficiary benefits in the way she intended.

Send your queries to Dominic Coyle, Q&A, The Irish Times, 24-28 Tara St, D2, or email dcoyle@irishtimes.com. This column is a reader service and is not intended to replace professional advice.