inheriting ISA's

Pete_Fish

Following the death of their mother, my wife & brother-in-law are due to inherit virgin stocks & shares isa (32k split 50/50), if it is duly split and transferred into their names, will the wife & B-I-L still get the 'tax free' isa status. If not, what are their best options ?

Kohoutek

Pete_Fish wrote: »

if it is duly split and transferred into their names

Depends on their wishes. It can be spilt and transferred into their names by a stock transfer form or all investments could be sold they could get the cash proceeds.

Pete_Fish wrote: »

will the wife & B-I-L still get the 'tax free' isa status.

No. You can't inherit an ISA, only the underlying assets (e.g. stocks and shares in this case).

Pete_Fish wrote: »

If not, what are their best options ?

What is the ISA invested in?

le_loup

Double posting is poor form. Your question has been answered.

Pete_Fish

apologies for the double posting - new to site, and couldn't see my original post

Pete_Fish

invested in virgin stocks & shares ISA

lisyloo

The search facility should help you find your post

https://forums.moneysavingexpert.com/discussion/3058842

Kohoutek

Pete_Fish wrote: »

invested in virgin stocks & shares ISA

Yes, but what stocks and shares?

Pete_Fish

No paperwork with me at the moment, but I'm certain it's the FTSE all share tracker fund. Haven't got round to finding out what stocks this comprises of, but doesn't appear to be 'dynamic' performance. I didn't offer any advice, but my B-I-L is asking me for it. At this stage I'm thinking that if the 'tax free' status can't be transferred, may be the best option is to cash in and he can make his own decisions on what to do. Although I've done well on my investments over the past 20 years, and get on very well with him. My B-I-L only has cash type savings and I don't want to feel responsible for potential bad advice.

mike88

ISA status ends on the date of death. Your proposed arrangement is very messy and there may be a couple of tax complications. Are you applying for Probate yourself or through a solicitor? If the latter it may cost you in terms of time to sort things out.

It would be much easier for the executors to sell the ISAs and repurchase in your own names.

lisyloo

Does he have any debt? mortgage?

Is he a 40% tax payer? If so he should consider whether to get 40% tax relief by putting this into his pension. The money will of course be tied up until retirement but you can get a tax free lump sum at age 55 (i think but he'd need to check his own scheme).

If he wants investments outside an ISA he'd be better off going to a good IFA.
I fully understand your desire not to make recommendations as you'd feel reposnsible if it went badly.

Pete_Fish

Thanks for all the comments people. I'll discuss the options, and hopefully this will help in making the right decision for them.