ISA inheritance non-spouse

S_F

Hi all, hoping someone here can help me please? My brother died and left a small amount of cash and 2 ISA's worth around £12000. I contacted the provider who mentioned APS ISA's but looking online these seem to only be available for a spouse/civil partner. My brother was single so I think the provider was wrong and I've not yet been able to find clear advise for non-spouse ISA inheritance rules. Does anyone here know how ISA's can be accessed by a sibling?

jimjames

Looks like it only applies to a spouse or partner not siblings or any other relationship. However for £12k it's well within the annual limits so shouldn't really be an issue. Cash ISAs might not even be the best option for the money when savings rates outside ISAs are better and you have the £500/£1000 interest allowance.

https://www.youinvest.co.uk/faq/what-happens-my-isa-if-i-die

Albermarle

As above , nowadays a  basic rate taxpayer can earn up to £1000 in interest each tax year tax free. So for the majority of savers , cash ISA's are effectively redundant .

lisyloo

Did he dies intestate (without a will) or was there a will?
Who is the executor?
do you know who the beneficiaries are?
have you established if probate is required?


banks have different rules, some will do £50k without probate, others have much smaller limits. You may be able to look these limits  up online.

S_F

Thanks for the replies. I phoned the ISA provider back and got the correct info this time. APS doesn't apply for non-spouse and probate is required in this providers case.

lisyloo

Ok, so regardless of what other banks say you’re going to need probate, although some may pay out without probate.
if it’s relatively straightforward then it can be quick.

we had an non straight forward case where they didn’t like the witness signatures but the witnesses were dead.
DH had to sign an affidavit in the end but during covid it took ages to find out what the back office were doing.

starightforward cases seem to go through ok from what I remember.

S_F

The bank in question will require probate and our case should be straightforward. Thanks lisyloo.