What happens to my ISA allowance when I die?
Your loved ones could inherit your ISA savings and investments and keep their tax-efficient benefits.
During the period your affairs are being sorted, your ISA would be classed as ‘continuing ISA’. What this means is your ISA keeps its tax-efficient status.
This stays in place until whichever of these occurs soonest:
- the administration of the estate is complete
- the ISA is closed
- it’s been three years since the loved one died.
Your spouse or civil partner can also inherit your ISA allowance that you’ve built up over the years, even if you leave the funds to someone else. This allowance is known as Additional Permitted Subscriptions (APS). It is on top of their own £20,000 ISA allowance for the tax year.
The value of the APS allowance is equal to the value of savings the deceased held in ISAs on the date of their death.
We offer a Legacy Cash ISA option designed specifically for inherited APS allowances.