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What Happens to an ISA when I die
Rich1976
Posts: 716 Forumite
I Know its a morbid subject but what happens to the tax status of my ISA when I die?
Does the full value of the fund get paid out to my estate tax free or does Income and Capital Gains tax get deducted first?
Does the full value of the fund get paid out to my estate tax free or does Income and Capital Gains tax get deducted first?
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Comments
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Investment ISAs (funds, shares etc) get the tax wrapper removed and can be transferred to the beneficiary. They do not need to be encashed. Cash ISAs, as they are cash already will be treated as cash.
There is no income or capital gains tax to pay.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
But there may be inheritance tax depending on who's receiving and the total value of the estate.0
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Cash ISAs, as they are cash already will be treated as cash.
Just to qualify (as it follows on the heels of 'transfer to the beneficiary') .... that cash ISAs lose their tax exempt status from the date of death. And are payable to the estate - they cannot be transferred.If you want to test the depth of the water .........don't use both feet !0 -
Thansk mikeyorks. I didnt word my response on cash ISAs as well as I should.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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You're forgiven.
Your responses are normally quite complete - so I thought you wouldn't mind if I just amplified that one a tad. If you want to test the depth of the water .........don't use both feet !0
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