ISA APS question

Ciprico

I've read up on this, but as it is a potentially an irreversable decision I wanted to bounce it off the combined knowledge of the forum.

ISA can be transfered from a deceased spouse to living spouse, but I understand the process is the contents of the ISA is essentially transfered out of ISA protection, along with a form called APS, provided by the ISA provider...

...and with this form the surviving spouse can put that amount of new cash into a new ISA within three years of the original ISA being being closed... 

My nervousness is in removing cash from ISA, so losing ISA status, and then having problems getting it back into (the spouse's) ISA account.

So iiuc it's a very different process to regular ISA transfer when the money is continously in an ISA...

Have I understood correctly, are there any pitfalls...?

Many Thanks

masonic

The easiest option is to do it within the same provider if they have that option available, then they can do it all for you. If transferring between providers, then the APS allowance is transferred to the new provider and they can confirm the account is ready to receive the APS. Once the APS is used, the ISA can be treated as a normal ISA and transferred elsewhere if desired.

xylophone

ISA can be transfered from a deceased spouse to living spouse, but I understand the process is the contents of the ISA is essentially transfered out of ISA protection, along with a form called APS, provided by the ISA provider...

See

https://techzone.abrdn.com/public/investment/Practical-guide-App-for-ISAAPS

https://moneyfacts.co.uk/isa/guides/the-rules-on-inheriting-isas/