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What happens to my ISA if I die?

If you die, then the money and investments you hold in your Stocks & Shares ISA will be passed on to your beneficiaries. It’s important to note that when you die your Stocks & Shares ISA will become a ‘continuing ISA’ for a short amount of time – this will remain open until the administration of your estate is completed or the ISA is closed by the executor. If neither happens within the time limit of three years and one day from the date of your death, then your ISA provider will close the account. In your Will you can leave your ISA to whoever you want, and your spouse or civil partner can inherit your ISA tax-free status as well.


ISAs are, however, subject to inheritance tax. If you leave your ISA to anyone other than a spouse or civil partner, and their estate is worth more than £350,000 – the current inheritance tax limit – they’ll have to pay inheritance tax.

However, if you leave your ISA to a spouse or civil partner, they won’t pay inheritance tax; this is the same for all your assets.

When you die, if you have a spouse or civil partner, they inherit a one-off additional ISA allowance. This allowance is equal to either the value of their ISA on the day you die or when it’s closed – whichever value is higher. This allowance is known as the Additional Permitted Subscription (APS) and doesn’t affect your spouse/civil partner’s own ISA allowance.

If you have any further questions on this subject that you’d like to discuss with our dedicated team, then please just get in touch here.

ISA eligibility rules apply. Tax is subject to an individual’s personal circumstances. Tax examples are correct for the current tax year at the time of publication, but tax rules can change at any time.

If you need more information or have any further question, and you are not already a client with True Potential, you can speak to our friendly team on 0191 625 0350 available 7am-8pm weekdays.

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