What happens in the case of death?

A request must be made in writing to Desjardins Capital régional et coopératif to redeem shares following the death of the shareholder. Such a request is usually made by the liquidator or executor of the estate.

In order to sell the shares, the following documents must be sent to the Company:

• proof of the shareholder's death (statement of death issued by the physician, death certificate issued by the funeral director, or a copy of the death certificate issued by the government);

AND

 

• an original copy or true copy (certified photocopy) of the will (a search for a will and probate of the will may be required) or marriage contract if it contains a testamentary provision, or, if neither of the above documents are available, a sworn declaration of transmission by death.

If no liquidator or executor is named in the will, a declaration by the majority of the heirs naming a liquidator or executor must be appended to the request.

If these requirements are met, a cheque will be issued to the estate for the amount of the share value.

Tax is withheld on the shares if the buyback takes place within the holding period of 7 years following the acquisition of the shares, except for shares acquired during the year of death.

The liquidator or executor must analyze the impact of the redemption on the tax returns of the deceased and of the beneficiaries and heirs of the estate.

We recommend that you refer to the guides entitled Preparing returns for deceased persons, prepared by Canada Customs and Revenue Agency and Preparing the Income Tax Return of a Deceased Person, issued by the Ministère du Revenu du Québec for the rules applicable to deemed disposition at death.

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