Individual Savings Accounts (ISAs)
Inheriting an ISA from your spouse or civil partner
ISA savings go to the named beneficiary in the will.
If your spouse or civil partner dies you can inherit their ISA allowance.
If your spouse or civil partner died between 3 December 2014 and 5 April 2018
Their ISA ended on the date of their death. ISA investments will form part of their estate for Inheritance Tax purposes.
Their ISA provider can be instructed to sell the investments and either:
- pay the proceeds to the administrator or beneficiary of the estate
- transfer the investments directly to the beneficiary
You can inherit their ISA allowance. As well as your normal ISA allowance, you can add a tax-free amount up to the value they held in their ISA when they died.
Contact your ISA provider or the provider of your spouse or civil partner’s ISA for details.
You cannot inherit someone’s ISA allowance if they died before 3 December 2014.
If your spouse or civil partner died on or after 6 April 2018
Their ISA will end when either:
- the executor closes it
- the administration of the estate is completed
- 3 years after your spouse or civil partner died
Their ISA will become a ‘continuing account of a deceased investor’. This means ISA investments will form part of their estate but stay tax-free until it’s closed.
No new payments can be made into the ISA.
As well as your normal ISA allowance you can add a tax-free amount up to either:
- the value they held in their ISA when they died
- the value of their ISA when it’s closed
Contact your ISA provider or the provider of your spouse or civil partner’s ISA for details.