Isa's and Bereavment

Robbie1255

My mother is 92 and has been saving money in an Isa, what will happen to this on her death and should it be moved now?

Newbie2saving

It becomes subject to tax, the tax free element is allowable for an individual and that part can't be passed onto someone, but the funds will just be part of her estate. I don't see why you would need to move it.

yorkiebar

As above, it ceases to be an ISA and becomes part of the estate.

sloughflint

To be a bit more precise:
The accrued interest is calculated to be free of tax up to the date of death and then taxable up to date of account closure.

opinions4u

Is it a cash ISA or a stocks and shares ISA? If it's the latter you may want to discuss with her the possibility of moving it to a cash based deposit account to simplify things after she dies.

As per other responses, cash or stocks and shares, it's a minor part of the process of winding up the estate. Don't lose any sleep over it.

jamesd

It's just an account that needs to be dealt with, no more or less hassle than any other. S&S ISA involves selling at some point and a valuation on the date of death, anything above or below that is a possible capital gain for beneficiaries. Unlikely to be a big deal and not enough hassle to be worth moving it.