can an ISA be inherited as an ISA?

Mistermeaner

Hi; apologies is a stupid question and covered somewhere else....

Late mother passed away with 3 ISA's;

- S&S ISA with provider A value ~£100K
- S&S ISA with provider B value ~£120K
- CASH ISA with provider C value ~£60K

The will sets out that this part of the estate is to be divided equally between her 4 children

Meeting the solicitor to discuss next week but awrae they won't give financial advice.

No inheritance tax will apply

There is enough cash on hand in the estate to pay bills and fee's and funeral etc

My question is that in order to distribute these funds equally are all the ISA's liquidated into cash on account and then passed onto the children....

OR...

Is it possible to reconfigure the holdings within the existing ISA's into 4 equal chunks and the ISA's transfer directly to the children...

OR....

Is it possible for the children to each set up ISA's of their choosing and then for their 25% portion of each isa to transfer into these ISA's (without effecting that individual childs ISA allowance for the tax year)


Any advice would be appreciated


Thanks

badger09

Mistermeaner wrote: »

Hi; apologies is a stupid question and covered somewhere else....

Late mother passed away with 3 ISA's;

- S&S ISA with provider A value ~£100K
- S&S ISA with provider B value ~£120K
- CASH ISA with provider C value ~£60K

The will sets out that this part of the estate is to be divided equally between her 4 children

Meeting the solicitor to discuss next week but awrae they won't give financial advice.

No inheritance tax will apply

There is enough cash on hand in the estate to pay bills and fee's and funeral etc

My question is that in order to distribute these funds equally are all the ISA's liquidated into cash on account and then passed onto the children....

OR...

Is it possible to reconfigure the holdings within the existing ISA's into 4 equal chunks and the ISA's transfer directly to the children...

OR....

Is it possible for the children to each set up ISA's of their choosing and then for their 25% portion of each isa to transfer into these ISA's (without effecting that individual childs ISA allowance for the tax year)


Any advice would be appreciated


Thanks

Put very simply, when someone dies, their spouse can inherit their ISA allowance, by way of an Additional Permitted Subscription. eg husband dies with cash ISA £150k, wife can subscribe (pay in) £150k + £20k

However, this does not apply to children, or other beneficiaries.

As far as the shares/funds held in the S&S ISAs are concerned, I think the ownership can be transferred direct to the beneficiaries, but they will no longer have ISA status.

getmore4less

The rules changed last year on spouse transfers.

make sure anything you read includes the April 2018 changes.

eg
https://www.gov.uk/guidance/manage-additional-permitted-subscriptions-into-an-isa

Keep_pedalling

I would keep it simple, cash in the S&Ss accounts and distribute in cash. It is unlikely that the investments that suited you mother will be equally suitable for the 4 beneficiaries.

Marcon

Solicitors can give generic advice/financial information, which is what you seem to be after rather than specific advice.

badger09

getmore4less wrote: »

The rules changed last year on spouse transfers.

make sure anything you read includes the April 2018 changes.

eg
https://www.gov.uk/guidance/manage-additional-permitted-subscriptions-into-an-isa

However, the rules didn't change to include children:cool:

getmore4less

You could check if anyone wants them if they invest.

I found it cheaper to take over the accounts than cash in.

Other cash assets got adjusted.