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    • helpful_hound
    • By helpful_hound 7th Nov 19, 3:10 PM
    • 3Posts
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    helpful_hound
    Multiple interitance ISAs (APS)
    • #1
    • 7th Nov 19, 3:10 PM
    Multiple interitance ISAs (APS) 7th Nov 19 at 3:10 PM
    My father recently died and had two ISAs. I understand that my mother qualifies to 'inherit' the allowance of the value of these ISAs under the APS scheme.
    Both ISAs had approx 50,000 saved in them. My mother would like to transfer them to two separate inheritance ISAs with different providers, rather than combine them into one (and therefore exceed the 85,000 FSCS government guarantee on savings). I have read all the guidance but am still not clear if she can do this? I understand that she cannot split a single APS between different providers, but does she have to transfer both APS into the one ISA, or can she use each separate APS on any ISA she chooses (which permits APS)?
    I hope my question is clear! Thanks for the help
Page 1
    • xylophone
    • By xylophone 7th Nov 19, 4:25 PM
    • 31,660 Posts
    • 19,635 Thanks
    xylophone
    • #2
    • 7th Nov 19, 4:25 PM
    • #2
    • 7th Nov 19, 4:25 PM
    https://www.which.co.uk/money/savings-and-isas/isas/cash-isas/can-you-inherit-an-isa-av3zk0s5ud6q

    Where can I invest the Isa savings I've inherited?

    The surviving partner can choose where to transfer the inherited savings. They can: keep the money with the original Isa provider put the money with their own Isa provider open up a new cash Isas or a new stocks and shares Isa and place the additional subscription there. An APS allowance can only be transferred once, but if there is more than one Isa to inherit, you'll have an allowance with each provider.
    • helpful_hound
    • By helpful_hound 7th Nov 19, 5:28 PM
    • 3 Posts
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    helpful_hound
    • #3
    • 7th Nov 19, 5:28 PM
    • #3
    • 7th Nov 19, 5:28 PM
    Thank you for bringing my attention to that guidance, Xylophone!

    So if I have understood it correctly, my mother can...
    1) open a separate inheritance ISA for each of the APS allowances she inherits from my deceased fathers ISAs.
    2) Once they have been funded to the total amount of each APS, she can transfer each of them over to any two new ISAs which accepts transfers-in.
    3) All of the above can be done in addition to her opening a completely separate ISA for her own personal 20,000 allowance for this tax year. (Potentially this new ISA which she uses her 20,000 allowance this year could do a transfer-in from one of the completed inheritance ISAs?)

    Have I understood that correctly?
    • xylophone
    • By xylophone 7th Nov 19, 8:27 PM
    • 31,660 Posts
    • 19,635 Thanks
    xylophone
    • #4
    • 7th Nov 19, 8:27 PM
    • #4
    • 7th Nov 19, 8:27 PM
    She has her own ISA allowance for the current tax year and the two APS.

    The APS allowance may be used with the deceased’s ISA provider or another ISA provider.

    Not all ISA providers will accept APS allowance subscriptions, but they are obliged to pass relevant APS allowance information on to another ISA provider.

    And see https://uk.virginmoney.com/virgin/isa/aps-allowance/ with link to BBA leaflet.
    • helpful_hound
    • By helpful_hound 9th Nov 19, 11:05 AM
    • 3 Posts
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    helpful_hound
    • #5
    • 9th Nov 19, 11:05 AM
    • #5
    • 9th Nov 19, 11:05 AM
    Perfect, thanks
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