Hello new to the forums. I have a question regarding inherited stocks. My mom passed in April of 2020. I'm including this date, as I'm told that the date of passing sets the stock price for inherited stocks. I thought I was receiving all cash, but learned yesterday that I'm also inheriting 578 shares of Apple (APPL). It looks like APPL was approximately $70.00 per share then (my mom's passing). The trustee sold off the bulk of my mom's investment portfolio late December 2021 when shares of APPL were at $171.00 But in the disbursement letter my 578 shares are listed at a value (total) of $88,669. This would put it at a per share value of $153.40. This makes no sense to me. It seems to me that I would have been better off getting the share value of $171 (per share at time the portfolio was sold) in cash which would mean a total cash equivalent of $98,838. Today APPL is trading at $132, so at 578 shares, $76,296 To me, this looks like a $22,000 loss starting off. I contacted the trustee attorney, and he said it doesn't work this way. He said he could work it out so I could get cash instead, but he strongly advised against it. He said I should contact a professional in stock investments to learn the facts, as he's not allowed to give financial advice. The problem is I only have a couple of days to make this decision, and I'm in a very remote place, and it would take a full day's drive to reach the nearest city which I don't have the time for. So I thought I'd reach out in the forums to educate myself a little before making some phone calls. I don't need the money right away, so establishing it as a long-term investment (1+ years) is not an issue.
You Are Looking at Market Value. Your Basis for the 578shs is about $70. Fair Market Value at Date of Death. Todays Value is about $132 per Share. Thus, you’re still in a profit. Take the Shares. If you don’t need the money don’t sell them forget about it for a long time. Your Mom Saved a Lot of Taxes. Assuming She Held these Shares for a While. -IndependentCandy14
Thank you for the reply! I did decide to take the shares. Coincidently, I watched a financial report today where the commentator/investor said tech stocks look pretty good in 2023 despite the looming recession. He pointed specifically to APPL and said he expects APPL to see 20% increase on the year. That's good enough for me. : )
Howdy Greybeard! IDK what your experience is with Stocks and the Equities Market but, do not take it 6 months or 1 year at a time. This is a Long Game. No Guarantees Apple Gives a 20% Return Next Year. I am not Trying to Spook You. Just the Truth. -IndependentCandy14
Thank you for the reply, Yes, she invested in APPL in 1998 I believe. She had about 2,300 shares. I was her Trustee and POA up until her passing, then I turned it all over to an independent, professional trustee to do the final accounting and disbursement. In an initial zoom call, the trustee asked if any of the beneficiaries wanted stocks kept. My sister said yes to APPL. Somehow he misinterpreted it as we all wanted APPL kept, so I was surprised to learn I was receiving 578 shares.
Thank you for the reply, No I have no need to sell the stock anytime soon. I was nervous learning I was receiving stocks because the market is not good right now, and the global economy has some systemic issues that need to be confronted. I'm not experienced in stocks at all, but I am a history nut and have taught history for years, so I do have knowledge about big picture stuff including global economics. We could be looking at some fundamental changes to the way the world has been doing business for the last 30 years. Russia and China are really rocking the boat. Covid didn't help either. I got extremely lucky in that my mom's portfolio was cashed in late December 2021 right at the peak of the market before it's current tumble. This might be a market for cool, experienced heads, but that would not include me. : P
Sorry for your loss. It is a tough thing to go through. I think you are doing the right thing now by taking your time and not making any sudden decisions. Take your time to research and decide. Educating yourself about the market and investing will help you decide when the time comes. The Long Term Investor Thread contains some good information to evaluate. Also, I might suggest a book by John C. Bogle "The Little Book of Common Sense Investing." It is worth the read and may help. Once you have had the time to do some research it will give you an idea about what you may or may not want to do. You may decide to invest in very low cost index funds or a combination of stock and index funds. You may decide not to invest in any of it. Take your time. In investing, there will always be a time when there are bear markets, down turns, and the like. This is normal in investing. You just have to construct a plan that aligns with your risk tolerance and financial plans/goals. Doing so will help you navigate the good times and the bad times. Lastly, the news and financial media need to be taken in very measured doses when it comes to investing.
Thank you for the kind thoughts and thoughtful and judicious advice! I'm likely to hold my portfolio to the APPL stock. Years ago my mom gave all her kids $2,500 to invest in stock. She was doing quite well in investing at the time (I think she bought APPL at 85 cents a share), and wanted to share her enthusiasm with us. I wasn't as excited about it as her, but gave it due diligence. I spent several weeks educating myself. In the end I invested in Sprint PCS and one stock my mom invested in. Sprint PCS did really well, so well that Sprint spun it off which caused a huge loss in value. Then it brought it back into the fold when it was on life support, and it slowly recovered, but then spun it off again just when it was doing well again, well I forget the whole story, but the result was my investment went to zero even after investing a lot of time doing research. The result was I never became a fan of stock investments like my mother did. She did very well, me not so much. I invested in land because I could determine the outcome by how much time and energy I invested in land improvements. I did well in land investment. : )
