Inherited ISA allowance for multiple ISAs

circlesinmyhead

My late husband had several ISAs accumulated over the years; 8 cash ISAs with 5 different providers and 3 stocks/shares ISAs with 3 providers.  I am getting circles in the head from reading the available advice online!  Can I open ISAs with each of those providers using the funds that I have inherited from each product, or do all the allowances get added up and I can then open only one ISA up to the total value of all his ISAs? I am keen to keep the stocks and shares ISAs separate (don't want all my eggs in one basket) but would like to amalgamate all the cash ones to make life easier.

Keep_pedalling

No, it does not work like that. You need to close those ISAs and you can open new ones in your own name. You will be able to to put in an equivalent amount in addition to any unused annual allowance.

Mark_d

I believe you need to open accounts with the 3 S&S ISA providers, and this will be where your husband's S&S ISAs will sit. I think all your husband's cash ISAs can go in to one account.  I agree this makes life easier

William1948

I m a bit lost here. On death a partner can have the ISA' S transferd to there own name at probate ,(if they are cashed in they lose the tax free element for good) you can then transfer the 5  cash ones into a new ISA if you wish keeping under the £85 thou protection or stay with the current provider.
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goodread

As surviving spouse you can set up an ISA  in your name which basically combines the value of all the separate ISAs held by your husband.  This ISA is over and above your own individual £20,000 annual allowance and is called an additional permitted subscription ISA.  Not every ISA provider offers such a product and they call them by different names, Legacy Cash ISA or Inheritance ISA for instance, but they are the same thing.

Your new ISA is a cash ISA with its own interest rate, which you can then transfer to another ISA in the future as you would any other ISA.

If you want to set up one of these ISAs then do not close your husband’s accounts yourself.  The provider you choose to use will send you the closure authorisation forms for you to fill in and they will send them on your behalf. 

 

Keep_pedalling

William1948 said:

I m a bit lost here. On death a partner can have the ISA' S transferd to there own name at probate ,(if they are cashed in they lose the tax free element for good) you can then transfer the 5  cash ones into a new ISA if you wish keeping under the £85 thou protection or stay with the current provider.
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You don’t lose the the allowance for good, it can be used to open your own ISAs

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

eskbanker

https://www.gov.uk/guidance/manage-additional-permitted-subscriptions-into-an-isa is a fairly comprehensive explanation of how this situation is handled.

Newly_retired

My husband had only one ISA, with his bank. I knew about the APS, so initially I spoke to the bank's bereavement team who were very well informed and helpful and I opened an ISA with them in my own name. The bank transfered his ISA into it. I then had to go into branch to complete some paperwork. (Incidentally the person I spoke to who provided the form said it was the first time he had helped with one and did not know about the APS. He was not a young employee.)
Later once the dust had settled I transferred the ISA to another financial organisation, just like any other ISA transfer.