Nationwide - pay out to two accounts?

tonycable

apologies if this the wrong place, but I wasn’t sure where else to post this.

we’re trying to deal with my dads estate, and nationwide are saying the can only pay out to one account and not split them between two accounts.

For a bit of rough context, my dad had 8 accounts, 4 ISAs, and 4 other accounts.

We want the money in the isas to go to my mum to fund a aps isa with nationwide, and the money in the rest of the accounts to go to me.

Nationwide have informed me they can only pay out all the funds to one account.

In the first instance, is this correct? I know the form only has space for one account, or should I push on with trying to get it pod out to two accounts?

If not, what’s the best way to go forward? I think I have two options.

1. Pay it all out to me, then fund the isa from my account. My issue with this is this will take me over my allowance, so I’m concerned I can’t do this or will end up with some inheritance tax bill. Also concerned funding my mums isa with what could be deamed to be my money. I know we could transfer it first.
2. Pay it to my mum, fund the isa, then bank transfer the rest to me. My concern with this is could this be seen as a gift? We would write a letter and sign it saying what we have done, and put a reference on it so it could be matched up.

what would you recommend in this position?

Thanks.

Florenceem

My husband died recently - he had 6 accounts with Nationwide - it was all paid to me into one account.

MDMD

I’m currently doing the same. Note that for the APS subscriptions you need to follow their process, you don’t pay into the ISA directly, you fill in a form, Nationwide move the money.

https://www.nationwide.co.uk/savings/help/inherited-isa-allowance-explained/

You won’t get an IHT bill, the estate should usually pay the IHT if due before distribution is made.

sheramber

https://forums.moneysavingexpert.com/discussion/6654396/nationwide-pay-out-to-two-accounts

Dies the firm only relate to ISA’a ?

Nationwide explain you can only inherit cash ISA’s with Nationwide.

You can only make one single payment into the APS ISA so all cash ISA’s have to transferred in one transaction.

https://www.nationwide.co.uk/-/assets/nationwidecouk/documents/savings/terms-and-conditions/p2929-inherited-isa-allowance.pdf

tonycable

thank mdmd, I’m aware of the form and know that I need to fill that out and not pay directly into it.

The form I have to do first is the bereavement closure form, then once they are closed I can do the isa.

Perhaps inheritance tax is the wrong term. To word another way, I’m entitled to £x from the will (which I believe is a legal document) and if it is all paid into my account, then I go over the £x amount, however the money moving into my mums isa would put me under £x.

that’s one of the concerns that going over £x will cause issues at some point if all the accounts are paid to me.

JGB1955

IF you are the executor of the will you should open a bank account, separate from your own, to gather in ALL the funds from the estate. This saves any confusion as to whom the money belings to. The funds can then, later be distributed to the beneficiaries.

Keep_pedalling

The (and any other bank) will only pay out the the administrator of the estate not directly to any beneficiaries. As has already been said this should be put in a seperate account for distribution not an existing current account.

Keep_pedalling

For context you need to see the OPs previous thread. This is a substantial estate also involving a IPDI trust.

As you and your mother are joint executors you should open a joint account to hold all estate assets and once you have them distributing them as per the will. You mother will have an additional ISA allowance equal to the amount your father held in ISAs you don’t need to directly transfer from ISA to ISA.

Have you done anything about registering the trust with HMRC yet?

https://forums.moneysavingexpert.com/discussion/6642349/estate-planning-confused-about-what-i-am-entitled-to