At almost 80....

mania112

Yeah I guess MSE haven't fully got up to speed with the proof-reading of their ISA section. Rules changed on them in December.

1) Surviving Spouse always inherits everything without a tax-claim against the estate.
2) Previously ISA's needed to be cashed in and therefore lose their tax-free wrapper.
3) Now ISA's can be inherited too (the name on the policy changes to the surviving spouse)
4) When the Surviving Spouse dies, the ISAs will be part of the estate for IHT purposes (the surviving spouse would have also inherited the allowance, making anything over £650,000 charged at 40% assuming a) no other beneficiaries were named on 1st death and b) charitable donations from the estate were under 10%)

margaretclare

Just got it all clarified and sorted out. Received a pack of paperwork from H-L and have just spoken to them. It's simple. I can withdraw all my SIPP as cash subject to a £25+VAT fee and subject to tax at BR. All the money paid into my current account and deal with it from there. Keep some of it for ongoing things this summer and re-invest the bulk of it in my S&S ISA. If I pre-decease DH he can inherit my ISA, if he pre-deceases me I can inherit his. He's been saving to pay off the car, the arrangement he has with Ford.

We can also inherit each other's SERPS.

So, I've really thought a lot about this over the weekend, what would be best to do. I think it's maybe time to simplify and sort out what can be sorted out, rather than leaving a lot of complications. Just mentioned it to DH - he really doesn't want to know, it's my money, it's all up to me. He's not bothered at all about inheriting from me.