As the result of a "de-mutualization" of my insurer (NE Financial merged with MET Life) I received 25 shares of MET Stock. These shares, originally held at BNY Mellon, recently were transferred to Computershare which provide shareholder services for the shares. Nothing that I initiated. In fact, I stumbles upon this revelation after doing a yearly checkup on the BNY Mellon account. I never received an email nor a mailing of this change. It was hell finding the correct department at Computershares and then proving to Computershares who I was since I was using BNY Mellon Accont information that I had screenshots of (the account nor longer was accessible to me online).
Anyway, this year MET spun off BHF (Bright House Financial...an annuity service of MET) which provided me with 2 shares of BHF. I realize I am not going to get rich here, but these are the kinds of transactions (that even the owner has a hard time following let alone an heir). It happen all the time and these financial assets get lost in the shuffle of life.
I mention this because my parent (a physician and original member of the formation of Mutual Hospital Insurance later known as Anthem) dead very young. My remaining parent, now 94, discovered (by another family member 40 years later) that she was the beneficiary of over $100K of WLP stock (which bought Anthem at one point in time and now WLP is traded as ANTM..don't try to keep score here).
Here a brief history if you are interested:
https://en.wikipedia.org/wiki/Anthem_Inc.My point is... Fast forward 40 years from today my MET/BHF stock could one day be a small fortune. The power of compounding over time.
So, organize these financial "loose" ends for yourself as well as your heirs. It may seem time consuming, but it is worth every penny of the time that you spend on it.
Also, has a Mutual Fund ever de-mutualized?
Comments
Interesting article on De-mutualization:
r0k.us/insurance/gp/gpda.html
I was notified about the shares when the demutualization occurred, and I was notified of the Brighthouse shares (well, cash) as well. So I'm a little surprised that you got no notifications. Perhaps the problem lies with your old insurer?
My MET shares were held in a trust (also via Computershare) that enabled me to buy and sell shares with no commission. The Brighthouse shares would have been held there also, had there been any shares to hold. These days, one can trade stocks for next to no commission, so I don't see much value in retaining the shares in the trust.
Be advised that the IRS has always asserted that your cost basis in the shares is zero. There is some disagreement across courts about this, but the IRS remains unmoved. https://www.journalofaccountancy.com/issues/2016/mar/basis-of-stock-in-insurance-demutualization.html
Given the fact that I'd owe taxes on 100% of the value, or could get a deduction on 100% of the value by donating them, I figure I'll donate this year, while I can still itemize. (If the tax "reform" legislation passes, then between loss of SILT deductions and higher standard deductions, I'll not likely itemize in 2018.)
fairmark.com/investment-taxation/capital-gain/stocks-and-other-securities/inherited-stock/
BTW, I also did get cash for the fractional share value as well.