Will / trust

Skint_yet_Again

Sorry to ask more questions regarding ISA’s and accrued interest. 

If the isa was opened in a previous tax year feb 25 and interest was due to be paid on maturity feb 27 is all interest still included on iht calcs for the whole period to date of death even though it is over 2 tax years and not paid until maturity or account closure 

Is ISA interest paid after death part of the estate? I believe it retains its tax free status for 3 years so does this mean it’s not included as income for the estate 

sorry am a bit confused 😵‍💫 🤯

probate_slave

Your father's estate at death should include accrued interest on the ISA, ie the proportion earned between February 2025 and his date of death (August?). So, about one quarter of the interest due on maturity. The ISA provider will hopefully have given you this figure.

Once you have probate and close the ISA, the entire interest paid (including the accrued amount) is tax-free income of the estate.

Cobbler_tone

Good article on the awareness of Trusts this morning on BBC Breakfast. Maybe a scandal for the future. Beware.