options on inheriting an isa

Pete_Fish

My wife and her brother are due to inherit a stocks & share isa from their mother(deceased). It will be split 50/50, around 16k each. Will the 'tax free' benefits also be transfered to them ? If not, what are the best options ?

Best regards - :beer:Pete

lisyloo

An ISA is an INDIVIDUAL savings account for one person only.
They will get the benefit SO FAR i.e. any income and gains accrued to date will be tax free.
But from this point on (or from the date of death) it will have to come out of the ISA.

Both the wife and brother have an ISA allowance this year of £10,200 each of which £5100 can go in cash.
Next tax year (starting 6th April) they will have £10,680 each of which £5340 can go in cash.

So if they get it before April then they can fill their ISA allowances.

They have plenty of other options like putting some in their pensions, paying off debt.
It wouold be impossible to say what's best for them without knowing a lot more about their situation.
Whether they have adequate pension funds? emergency funds? debts? and what assets they have.

But generally ISAs are a very good place to put savings/investments.