ISA APS allowance

AP3

Sorry if this has been asked before, but searches on here didn't shine much light, and information from the banks isn't helpful.

My wife passed away and had a cash ISA with Natwest.

I have probate, and am the sole beneficiary.

I bank with Barclays, so would like to transfer the APS to them. For this, Barclays has forms to complete, which appear to open a "special" APS ISA. On the form, I can specify the "inherited" ISA as being with Natwest, and give the account number & sort code.

My questions are:

Is this all that is necessary? Some sites say I have to contact Natwest to be given the APS allowance value to the give the Barclays.

Does is matter if the "inherited" ISA is closed before this happens (as part of probate)?

I feel like I'm overcomplicating things, but don't want to screw up.

If anyone has been through this before, I'd appreciate their take on how it all works.

Cheers,
Andy

friolento

Assuming we are talking cadh ISAs: You don’t actually inherit the ISA but you inherit an additional allowance. You need to ask Natwest to confirm the APS amount. You can then contribute up to this amount to an ISA in your name at a provider of your choice. Slightly different rules apply to S&S ISAs

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

There is also a good explanation on the HL website. Different providers may have different implementations of the overall APS rules, and different rates, so shopping about might be beneficial https://www.hl.co.uk/investment-services/isa/additional-permitted-subscription-aps

AP3

friolento said:

Assuming we are talking cadh ISAs: You don’t actually inherit the ISA but you inherit an additional allowance. You need to ask Natwest to confirm the APS amount. You can then contribute up to this amount to an ISA in your name at a provider of your choice. Slightly different rules apply to S&S ISAs

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

There is also a good explanation on the HL website. Different providers may have different implementations of the overall APS rules, and different rates, so shopping about might be beneficial https://www.hl.co.uk/investment-services/isa/additional-permitted-subscription-aps

Looks at the HL APS ISA application form, they ask for the 2nd party bank details, and APS value to be transferred.

I know the amount in the ISA, or at least I will, as it's still accruing interest monthly.

So I'm still confused as to what the 2nd party requires of me, when it appear that, in this example, HL would handle it all?

Edit: from the info at the end of the HL form: We will contact the other provider to request the transfer of the APS allowance to Hargreaves Lansdown.

goodread

The way it works is Barclays will contact Nat West to establish the value of your wife's ISA. You don't do it. That becomes your allowance for the new ISA at Barclays.  Nat West will release the funds to you and close your wife's ISA. You then have a certain period in which to fund the new ISA up to that agreed amount yourself. It all sounds a bit fiddly, but just let Barclays guide you through it. 

I did this for my Mum when my Dad died. We chose Skipton BS and they were very helpful. 

Once the new ISA is funded, it just becomes another cash ISA in your name that you can move to another account for better interest, as you can with any other ISA. 

AP3

goodread said:

The way it works is Barclays will contact Nat West to establish the value of your wife's ISA. You don't do it. That becomes your allowance for the new ISA at Barclays.  Nat West will release the funds to you and close your wife's ISA. You then have a certain period in which to fund the new ISA up to that agreed amount yourself. It all sounds a bit fiddly, but just let Barclays guide you through it. 

I did this for my Mum when my Dad died. We chose Skipton BS and they were very helpful. 

Once the new ISA is funded, it just becomes another cash ISA in your name that you can move to another account for better interest, as you can with any other ISA. 

Perfect, thanks!