ISA continuing account

[magsy12]

My husband died in January and I am the sole beneficiary and the main executor, along with my son, as stated in his Will. He has a stocks & shares ISA (with a low 6 figure value) which I would like to retain. I will not be using the Additional Permitted Subscriptions as my financial circumstances will not be able to fund it. The form from the ISA account says that the ISA can remain open as a continuing account. Does that mean it will be changed to my name? If it is a continuing account, will I be able to add to it, albeit in small amounts? I would be grateful if someone could explain this to me.
Many thanks.

[pje16]

Upon death the ISA status is lost
it will be transferred to a Non-Isa (continuing) account
assuming that the provider knows the rules
This is NOT always the case
when my mum passed way, she had a joint account with my dad and that bank just gave my dad a cheque for the balance that was in the account
Have they not heard of probate ???
After death an ISA becomes a 'continuing ISA' for a brief period
It will remain open until the administration of the estate is complete; or the ISA is closed by the executor

You will have to contact them and go through form filling

[niord]

My husband died in January and I am the sole beneficiary and the main executor, along with my son, as stated in his Will. He has a stocks & shares ISA (with a low 6 figure value) which I would like to retain. I will not be using the Additional Permitted Subscriptions as my financial circumstances will not be able to fund it. The form from the ISA account says that the ISA can remain open as a continuing account. Does that mean it will be changed to my name? If it is a continuing account, will I be able to add to it, albeit in small amounts? I would be grateful if someone could explain this to me.
Many thanks.

When my wife died her stock's and shares isa was transferred onto my isa account but I believe this can only happen if you also have a stocks and shares isa with the same company (I could be wrong about that but that is how it was explained to me)

[magsy12]

Thank you for the replies.
I do have a stocks and shares ISA with the same company. If my husband's ISA is transferred into mine, then it retains the ISA status? Is there a time limit or is it just 'absorbed' into one ISA? I think that is what I understand from your reply.

[niord]

Thank you for the replies.
I do have a stocks and shares ISA with the same company. If my husband's ISA is transferred into mine, then it retains the ISA status? Is there a time limit or is it just 'absorbed' into one ISA? I think that is what I understand from your reply.

My wife's isa was transferred into my ISA and still retained its ISA status. No idea if there is a time limit. My solicitor sorted it all out after probate as I was in no mood to do anything.

[magsy12]

Thank you Niord.
I will follow this up.

[chas49]

A summary of the rules here:

If you die
Your ISA will end when either:

your executor closes it
the administration of your estate is completed
Otherwise, your ISA provider will close your ISA 3 years and 1 day after you die.

There will be no Income Tax or Capital Gains Tax to pay up to that date, but ISA investments will form part of your estate for Inheritance Tax purposes.

Stocks and shares ISAs
Your ISA provider can be instructed to either:

sell the investments and pay the proceeds to the administrator or beneficiary of your estate
transfer the investments to your surviving spouse’s or civil partner’s ISA - this is only possible if they have the same ISA provider as you
Check the terms and conditions of your ISA for details.

https://www.gov.uk/individual-savings-a ... if-you-die

Also the next page:

Inheriting an ISA from your spouse or civil partner
If your spouse or civil partner dies you can inherit their ISA allowance.

As well as your normal ISA allowance you can add a tax-free amount up to either:

the value they held in their ISA when they died
the value of their ISA when it’s closed
Contact your ISA provider or the provider of your spouse or civil partner’s ISA for details.

https://www.gov.uk/individual-savings-a ... il-partner

[chas49]

Moderator Message:
This topic would do better on the Bank Accounts Savings & ISAs board - so I'm moving it (t)here (chas49)

[magsy12]

That is very helpful. Thank you.

[scrumpyjack]

Upon death the ISA status is lost
it will be transferred to a Non-Isa (continuing) account
assuming that the provider knows the rules
This is NOT always the case
when my mum passed way, she had a joint account with my dad and that bank just gave my dad a cheque for the balance that was in the account
Have they not heard of probate ???
After death an ISA becomes a 'continuing ISA' for a brief period
It will remain open until the administration of the estate is complete; or the ISA is closed by the executor

You will have to contact them and go through form filling

Not quite so. The ISA continues to keep its tax free benefits for up to 3 years or until the estate administration is complete, ie capital gains tax free and no income tax. However I found HL would not accept any instructions on the ISA other than winding it up, so one had to leave the investments untouched to carry on their tax free status whilst the executor wanted to do so.

[pje16]

The rules must have changed since my mum passed
I stand corrected

[swill453]

when my mum passed way, she had a joint account with my dad and that bank just gave my dad a cheque for the balance that was in the account
Have they not heard of probate ???

The money in joint accounts goes automatically to the survivor, probate and the will are irrelevant. Inheritance tax may be an issue (though not between spouses).

(Of course this couldn't have been an ISA, so not really on topic for this thread).

Scott.