isa and death

bluemorph

Does anyone know what is supposed to happen to share isas when someone dies?
Are they supposed to be frozen until grant of probate or do the share isa's remain live, finding all this very confusing :eek:

dzug1

They stop being ISAs. Dividends that are paid in directly will probably continue, but otherwise they are frozen until probate.

pollypenny

Interest rates on cash ISAs also revert to the low interest offered by 'ordinary' saving accounts.

Biggles

You need to contact the broker, who will send you a valuation as at the date of death. This is the figure you will need for probate purposes.

You must then send them the grant of probate when you receive it.

In the meantime, no one can buy or sell shares on the account though, of course, this won't stop the prices of the shares rising or falling, and dividends will still be received.

The ISA protection from CGT is lost at the date of death so, should it be a particularly valuable shareholding, it is of course faintly possible (though pretty unlikely) that the estate will incur CGT between the date of death and the date the shares are sold.

getmore4less

If the broker wants to charge for the valuation you can do it yourself.