Spouse Inheriting ISA's

Eldi_Dos

I believe that when a spouse inherits ISA's that there is a Additional Permitted Subscription that can be used.

My question is would the building society inform the recipient of this at the time ,as I would imagine its something that could be overlooked at a stressful time and may lead to some losing the tax free status of the money.

Marcon

https://forums.moneysavingexpert.com/discussion/6652548/spouse-inheriting-isa-039-s

It wouldn't be the ISA provider's responsibility to do that, so there's no simple yes/no answer whoever the ISA provider is (doesn't have to be a building society).

eskbanker

https://forums.moneysavingexpert.com/discussion/6652548/spouse-inheriting-isa-039-s

It would be the responsibility of the executor to identify all accounts held by the deceased, and to decide what to do with each of them, including ISAs. The APS provision is actually separate from the will conditions anyway, so it is possible for the ISA money itself to be willed to someone other than the spouse, even though it's the spouse who'd have the APS, so complexities like this are likely to impede any such advice from ISA managers….

dunstonh

My question is would the building society inform the recipient of this at the time ,as I would imagine its something that could be overlooked at a stressful time and may lead to some losing the tax free status of the money.

Some may. Typically, when they have been told by the adviser or executor that they plan to use the APS with the same company, then the APS forms are typically issued with the claims forms.

As it is a building society in your example, if the executor didn't say that they wanted to open an account for the spouse or use an existing spouse ISA, then there is no reason for an APS to be issued at that point. However, it can be requested after the event.