Fee to transfer ISA to spouse

mignolina

My mum has just been charged £1500 fee by a financial advisor to have my dad's ISA transferred to her name. My dad died in May. He told her this was a 3% transfer fee. He left her house with a cheque for £1500 and now my brother has contacted me to say he feels she may have been taken advantage of. The advisor works for a well known company and the cheque was made out to the name of the company, not to the advisor himself. The value of the ISA was approx. £60,000 and it was a stocks and shares type. We don't know what to think. Has this happened to anyone else?

dunstonh

We don't know what to think. Has this happened to anyone else?

If the adviser is employed on a transactional basis (i.e. no ongoing service being paid for) then you would expect to pay the adviser a fee.

if the adviser is employed on a servicing basis (i.e. your mum is paying an ongoing fee for ongoing servicing) then you would pretty much not expect to pay for this as that is what the ongoing servicing is for.

The advisor works for a well known company

This suggests tied company or sales rep and not an IFA. Most tied agents/sales reps only work on transactional basis.

xylophone

I am not sure what is going on here.

Your father died recently?

He had a stocks and shares ISA?

How did this adviser get involved?

mignolina

He had been dad's adviser for years and dad just seemed to trust him so we kind of inherited him when dad died. But my brother is not so trusting!

dunstonh

mignolina wrote: »

He had been dad's adviser for years and dad just seemed to trust him so we kind of inherited him when dad died. But my brother is not so trusting!

How is he paid?