Wife passed - what now for S&S ISA and other finances?

notforgotten47

Hello all.

So my wife passed away recently and I'm wondering what happens with her assets. We were looking to move to a new home but we have been renting, and it's a priority to stop paying rent and find a property, but I need a rough idea how much of a pot I have for the new house.

She has a bank account with a few £K in it, and a S&S ISA holding some shares.

I have power of attorney, so I suppose I will contact these institutions, but then what? Does the cash (assuming I sell the shares - about £30K) from the S&S ISA go straight into my own S&S ISA, meaning I'd have to withdraw it, and it then becomes taxable income, or can I access it without having to pay tax? With the bank account I guess I can put that money straight into the pot? Will I need to fill in self assessment tax forms(something I'd like to avoid if possible), or have a solicitor to deal with any of this? There is no will.

Thanks for any help/insights.

notforgotten47

One further question:

Can I now sell her shares, or should I leave them alone?

eskbanker

Firstly, sorry for your loss.

Power of attorney is no longer relevant after the death of the donor, so your dealings with the institutions will need to be as executor or administrator - if there's no will then the latter comes into play:

https://www.citizensadvice.org.uk/family/death-and-wills/dealing-with-the-financial-affairs-of-someone-who-has-died/

In terms of the contents of her ISA, you can benefit from the Additional Permitted Subscription facility to put the money into an ISA in your name, although if you'll be needing it imminently then the tax-free status may be less significant.

https://www.gov.uk/guidance/manage-additional-permitted-subscriptions-into-an-isa

The processes themselves aren't necessarily complex enough to require solicitor assistance, but you'll need to spend plenty of time familiarising with what needs to be done, so don't rush into anything, and see what help you can get from family and friends, given the stress of losing your other half.

jimjames

Sorry for your loss. Anything inside a S&S ISA (or cash ISA) is completely tax free so you certainly won't get taxable income as a result. I believe you get an Additional ISA allowance for the value of the ISA that you can then use but I'm not sure how that works for a S&S ISA. It's called APS ISA so you might be able to get some info that helps with that. Self assessment isn't related to inheriting money so if the money remains in an ISA there won't be a change in your requirement to do that.

LHW99

With no will, it will depend on whether you have any children, and the value of her estate. Assuming it is less than £322k, then you would inherit it all (if in England)

https://www.citizensadvice.org.uk/family/death-and-wills/who-can-inherit-if-there-is-no-will-the-rules-of-intestacy/

You are talking about shares, so you may need to apply for "letters of Administration"

https://www.gov.uk/government/publications/apply-for-probate-by-post-if-there-is-not-a-will

My understanding is that for an ISA you effectively receive your spouse's allowance

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

These things are difficult, when you have suffered a bereavement, so take time and get any support you can from friends and family. I hope all goes well for you.

p00hsticks

Sorry for your loss. 
Power of Attorney ceases on death, so that is now irrelevant. 

Did she leave a will ? If not, and assuming you are in England or Wales, then you will inherit under the intestacy rules.
The bank will probably pay out the cash directly to you on sight of the death certificate and some id, but the S&S Isa could be more tricky given the amount, and the institution involved may ask for you to get probate (if there is a will) or lettters of administration (if no will) before giving you access.  The current ISA status ended with the death of your wife, but there is a special arrangement for spouses whereby if you wish you can inherit the value of the deceaseds ISA as an additional ISA allowance for yourself - more info here
Individual Savings Accounts (ISAs): Inheriting an ISA from your spouse or civil partner - GOV.UK (www.gov.uk)

When getting in touch with these institutions to see what they say, look for their specific bereavement department - many large organisations have one and they are generally more clued up about the processes to be follwed following a death. 

Editted to add: I've just spotted that this is on the 'Savings and investments 'board - there is also a 'Death, funerals and Probate' board which you may find useful 
Deaths, funerals & probate — MoneySavingExpert Forum 

notforgotten47

Thank you all for the replies and kind words.

So it sounds like I can cash in the S&S ISA without too much hassle or penalty as her entire estate amounts to ~£40K. While I won't need the money for the house purchase, it'll be useful for an emergency fund, so I can wait a bit for it.

My only worry now is that the value of the shares will fall in the meantime(currently at an all time high). I'm guessing I can't just log in to her account now and sell them?

eskbanker

notforgotten47 said:

Thank you all for the replies and kind words.

So it sounds like I can cash in the S&S ISA without too much hassle or penalty as her entire estate amounts to ~£40K. While I won't need the money for the house purchase, it'll be useful for an emergency fund, so I can wait a bit for it.

My only worry now is that the value of the shares will fall in the meantime(currently at an all time high). I'm guessing I can't just log in to her account now and sell them?

You need to notify the S&S ISA provider of her death and take it from there, in terms of what they ask you to do, but don't log into her account and sell them - investments are often at all time highs, so in itself that's not necessarily a 'buy' signal....

notforgotten47

eskbanker said:

notforgotten47 said:

Thank you all for the replies and kind words.

So it sounds like I can cash in the S&S ISA without too much hassle or penalty as her entire estate amounts to ~£40K. While I won't need the money for the house purchase, it'll be useful for an emergency fund, so I can wait a bit for it.

My only worry now is that the value of the shares will fall in the meantime(currently at an all time high). I'm guessing I can't just log in to her account now and sell them?

You need to notify the S&S ISA provider of her death and take it from there, in terms of what they ask you to do, but don't log into her account and sell them - investments are often at all time highs, so in itself that's not necessarily a 'buy' signal....

OK, thanks for the clarification.