Legacy ISA - confused

AndieB

Can somebody explain to me exactly what a Legacy ISA is? My father passed away last year and left 5 X ISA’s in 1 building society and 1 x ISA in another.  I know the allowance of the full isas pass on to my mother but we are having real problems with the isa where the 5 are invested. We have been told that to be able to move any of the money into another ISA or ISA’S that we cannot split the money. We were then told to put the money into a legacy ISA within the same building society then we could transfer out as we wished. The legacy ISA is only paying 0.04%. Confused to say the least. Can anybody clarify our options. 

Alexland

When your father passed away so did the ISA status on his accounts so his whole estate would go through the normal process and if your mother was married to him then she would benefit from Additional Permitted Subscriptions which allow her to make higher contributions into her ISA account.

https://www.moneysavingexpert.com/family/guide-to-probate/

https://www.gov.uk/individual-savings-accounts/inheriting-an-isa-from-your-spouse-civil-partner

Many providers offer special Cash ISA accounts to process these APS subscriptions and there is no standard naming convention Nationwide call them Inheritance ISAs, Skipton call them Legacy ISAs, etc. If it is Skipton then their rate is currently 0.4% not 0.04%.

https://www.skipton.co.uk/savings/isas/legacy-isa

Once the APS subscription has been made then your mother is free to ISA transfer to another provider who may offer a better rate or more suitable product.

AndieB

Thank you so much, this now makes sense.