ISA's and death

Geekgirl74

Not cheery thought I know but my Dad is thinking about taking out a fixed term cash Isa and is a bit concerned about what happens if he dies before the fixed term is completed.

Starbrite

I'm guessing, you arrange to leave it to a chosen one, like you do with a pension. My Pension is going to my Brother but don't tell him as he'll try to kill me

McKneff

The ISA ceases to be an Isa, the money will go into his estate,

Edited to avoid misunderstanding

Mikeyorks

Most fixed term accounts, whether ISAs or standard savings - pay the fixed rate to the date of death.

I've only come across one exception to that - which I suspect is Santander?

lisyloo

It goes into the estate and gets distributed according the will.

oldvicar

Upon death, an ISA account loses its tax-free status. Returns up to the date of death will be calculated and will be tax free.

Any interest earned after death will be taxable as part of the estate. USUALLY, after probate (if required) is granted the Bank/Building Society will allow ISA deposits to be paid out without penalty, even if it was a fixed term account, but check the terms and conditions.