Advisor fees transfer of isa to spouse on death

Mistermeaner · 11 February 2019 at 8:34PM

Hi

Mum passed away recently : her and dad (who survives) each have a s&s isa of value circa 100k each

These were arranged by a local financial advisor who charged them 1.5% on set up plus 0.5% a year

The isas are with parmaneon invested in a simple range of low risk funds and have performed to expectation

Mum died leaving everything to dad so went to see them today

They want 1.5% of mum's isa as a fee for transferring it into dad's name

That feels like a rip off to me

Thoughts and commemts welcome

I think I could do it myself for free

masonic · 11 February 2019 at 8:43PM

If you can access the same or equivalent funds in on DIY platform, then you could potentially do it yourself for free.

LHW99 · 11 February 2019 at 9:23PM

local financial advisor

is this an independent financial advisor?
I don't know if parmaneon only deal with advisors (intermediaries) some are like that.
You could consider terminating the ongoing 0.5% if the investments reamin unchanged most years, and only pay for a review every few years on a transactional basis. Ongoing servicing does not have to be taken up, it is your choice.

Alexland · 11 February 2019 at 9:26PM

Given they were both paying for ongoing servicing then I don't really see why a new one-off charge should be proposed. The ISA cannot be transferred but the surviving partner would get an additional permitted subscription. Nationwide have some good webpages about this.

https://www.nationwide.co.uk/support/support-articles/manage-your-account/isa-inheritance/

Alex

dunstonh · 11 February 2019 at 10:01PM

They want 1.5% of mum's isa as a fee for transferring it into dad's name

If they are being paid for ongoing servicing, then most advisers would carry out a transaction like this with no initial/switching charges. If they don't then you have to question what is it that they are paying ongoing servicing for.

That feels like a rip off to me

If it is in their published terms then its not a rip-off but expensive. If it is not in their published terms, then it is a rip and not allowed.

is this an independent financial advisor?

It is a platform usually used by FAs/Wealth managers and often using DFMs. Whilst it is possible some IFAs may use it, most will not as Parmenion is a platform geared and focused on being the platform used by the whole advice firm for everyone and everything. That is not consistent with how an IFA should operate.

xylophone · 11 February 2019 at 10:13PM

https://www.hl.co.uk/investment-services/isa/additional-permitted-subscription-aps

Investments: investments held in the deceased's ISA can also be transferred into the surviving spouse or civil partner's ISA directly without needing to be sold. Please note, investments can only be transferred into an ISA with the same company with which the deceased held their ISA.

Otherwise Dad could sell the investments and transfer the APS to another provider who would accept it?

Mistermeaner · 11 February 2019 at 10:39PM

Hi all thanks for input

Advisor is number 474097 on the fca register - I don't think they're independent

As pointed out i was a little irked at the one off fee for what should be straight forward Admin (the holdings in each of mum and dad's isas are identical)

I've emailed saying do nothing for his as not happy with one off charge

Separately I've asked them to explain what they've been doing for the ongoing charge - from the paperwork i have its nothing as parmaneon seem to be running it

As it's s&s holdings i presume they would need to be sold and then repurchased it moving to another provider (but dad could retain the isa status via APS)? Is this correct

Thanks

LHW99 · 11 February 2019 at 11:09PM

Normally with any ISA you ask the receiving scheme to do the transfer. If its S&S you have a choice of selling into cash before the transfer, or getting things transfeered as stocks / funds (providing the new platform can hold those). The first is generally quicker, but you have the selling costs. The second usually has transfer fees per fund / stock. What you don't do is close the ISA and re-open because it loses the ISA status.

londoninvestor · 11 February 2019 at 11:14PM

LHW99 wrote: »

The second usually has transfer fees per fund / stock. What you don't do is close the ISA and re-open because it loses the ISA status.

In this particular case ("transfer" to a spouse after death), the ISA status is effectively not lost by closing the ISA, because the surviving spouse gets an additional allowance equal to the value of the deceased's ISA. That's the "APS" that posters are referring to above.

Mistermeaner · 11 February 2019 at 11:16PM

Thanks

Is this the same when it's an inheritance isa ? I read the nationwide link above (albeit quickly) and I understood you apply for the APS and once granted you can pay in cash to that value

Nb mum had an isa with nationwide as well ; we went to see them today and they are opening one of their inheritance isas for dad to transfer mum's nationwide isa to him ..... I guess I can ask them to also accept mum's parmaneon isa ( if it's liquidated to cash)

londoninvestor · 11 February 2019 at 11:20PM

Mistermeaner wrote: »

Thanks

Is this the same when it's an inheritance isa ? I read the nationwide link above (albeit quickly) and I understood you apply for the APS and once granted you can pay in cash to that value

Yes that's right - "Inheritance ISA" is a term for what you pay the APS into basically.

Advisor fees transfer of isa to spouse on death

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