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Inheriting an ISA question

10 replies

Wingedharpy · 28/03/2022 01:40

Due to a bereavement, I have inherited 2 ISA's.
Unfortunately, the bank the ISA's are with, do not offer additional permitted subscriptions(APS) so these accounts will have to be closed at some point.
My question is, do I need to find another financial institution that will take additional permitted subscriptions first, then move the money straight to them or can I move the money to my own bank account and then set up a new ISA with the APS?
I'm a complete novice but learning fast.
Thank you.

OP posts:
Alwayscheerful · 28/03/2022 05:04

ISAs belonging to spouce?

Wingedharpy · 28/03/2022 09:35

@Alwayscheerful : Sadly, yes.

OP posts:
Alwayscheerful · 28/03/2022 11:10

@Wingedharpy
Sorry for your loss, I wanted to checked as it is only spousal ISAs that are transferable, who are the ISAs held with at the moment?

Wingedharpy · 28/03/2022 11:41

@Alwayscheerful :
Thank you.
They are both with Hodge Bank who have written to me to tell me they do not take APS.

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Alwayscheerful · 28/03/2022 11:50

hodgebank.co.uk/savings/what-to-do-when-someone-passes-away/

Most ISAs need to be transferred using an isa transfer application form.

Hodge bank look to be especially helpful use the bereavement helpline to check.

Inheriting an ISA question
Wingedharpy · 28/03/2022 12:44

I've seen that info Alwayscheerful and have advised them of the situation.

They then wrote to me outlining the balance in both accounts but also telling me that they do not take APS.

So, do I leave the money where it is while I find a new provider or, do I transfer it to my current account with a view to putting it into another ISA later with someone who does take APS's?

I'm looking for the action which will cause least hassle to me.

OP posts:
Alwayscheerful · 28/03/2022 13:56

@Wingedharpy

I've seen that info Alwayscheerful and have advised them of the situation. They then wrote to me outlining the balance in both accounts but also telling me that they do not take APS.

So, do I leave the money where it is while I find a new provider or, do I transfer it to my current account with a view to putting it into another ISA later with someone who does take APS's?

I'm looking for the action which will cause least hassle to me.

Leave it where it is and transfer it directly to the new isa provider
Wingedharpy · 28/03/2022 15:22

Thank you.
Very grateful.Flowers

OP posts:
Sunseed · 28/03/2022 18:42

You need to do an ISA to ISA transfer so that you retain the tax wrapper. Moving to your current account as an interim step will cause the ISA status to be lost.

Wingedharpy · 11/05/2022 17:34

Just revisiting this as while what you say @Sunseed is correct for a normal ISA situation, if I've understood correctly, that isn't the case with APS ISA's.

The actual money in the ISA can be bequeathed to person A by the deceased but the value of the ISA's is inherited by the widow/er, who could be person B and they can then open an APS ISA to the value of what was in the deceased's accounts.

One of the banks concerned also advised me that I should close the account and then look for an APS ISA account elsewhere.

Only posting this as it may be of benefit to someone else struggling through the fog but, if someone who has vast knowledge and experience with this matter knows different, please do tell.

OP posts:
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