ISA and Wills

outlaw777

Who can the executor be then either a family or friend?

eskbanker

outlaw777 said:

Who can the executor be then either a family or friend?

Anyone you wish....

https://www.moneyadviceservice.org.uk/en/articles/choosing-your-executor

Are you preparing your will without legal assistance?

underground99

dunstonh said:

It's probably best not to instruct that the ISAs are sold and proceeds distributed.    ISAs cease to exist on death and revert to being unwrapped.  Some beneficiaries prefer to receive the investments in situ rather than cash.    So, stating that the investments should be sold is unnecessary.  It removes choice.

It does remove choice which is probably an unnecessary restriction, and for a beneficiary who preferred to stay invested there would be an annoying time 'out of the market' while the investments had been sold and before they got the cash to re-invest in whatever they wanted.  For example it would be annoying if the investments were sold last March at the bottom of a big market crash and the person only received their share of the money to reinvest in May-June when markets had rebounded.

The one benefit of selling and distributing the cash is that if there are lots of small value holdings and multiple beneficiaries it could be a bit of a tedious admin hassle to have to carve them all up e.g. three ways or have the parties mutually discuss who was going to take what. If the children are not investment-savvy and don't want anything 'time consuming and complicated' it would be easier just to know they would all get cash, which they could understand without any professional guidance. I do agree the most flexible approach is not to specify anything.

jimjames

eskbanker said:

outlaw777 said:

Who can the executor be then either a family or friend?

Anyone you wish....

https://www.moneyadviceservice.org.uk/en/articles/choosing-your-executor

Are you preparing your will without legal assistance?

If that is the case it would make more sense to have the will prepared by a solicitor and the executor named as a family member rather than a DIY will and paying a solicitor to be executor and potentially racking up bills sorting any discrepancies in the DIY will.

outlaw777

Say for example once the will is drafted and the ISA accounts are listed in there and will states not to instruct that the ISAs are sold and proceeds distributed however it is noted in the will and once its activated that X person is entitled to 50% of the will (ISA etc) how does this amount end up in the bank account of the beneficiary named on the will? Also how long does it take for the money to come into the bank account?

jimjames

The will wouldn't/shouldn't state not to do something like selling investments. It would not list such an action so essentially would be silent on it. The executors would make the decisions in line with fulfilling the requirements of the will.

I'd really recommend speaking to a solicitor as they will be able to answer these questions and draft the will in the way you want to ensure that the outcome is as you define.

dunstonh

outlaw777 said:

Say for example once the will is drafted and the ISA accounts are listed in there and will states not to instruct that the ISAs are sold and proceeds distributed however it is noted in the will and once its activated that X person is entitled to 50% of the will (ISA etc) how does this amount end up in the bank account of the beneficiary named on the will? Also how long does it take for the money to come into the bank account?

Putting aside the fact you shouldnt list it the ISA accounts....
And you shouldn't put instructions in there to limit the options.....

The executor of the estate will give the beneficiary the choice of receiving the investments in situ or for them to be sold to cash.  The beneficiary decides.   If in situ, then its a simple form to re-register the assets to the new owner(s).  If in cash then the assets are sold to cash and paid to the bank - about a week later.   Split decisions have no impact either. ie. one decides to keep their units and the other wants the cash.   All very easy.