How to joint own DH's ISA investment account

[Avocado13875]

NC..

So it's not possible to joint own an ISA account. But I'm after a creative way to achieve what we are trying to do..

Long story short, for various reasons we are streamlining our finances and decided to jointly hold my property and his investment portfolio (the two are very similar in value).

We are changing my property deed to jointly own it. But it appears that DH's portfolio share is about 50% in ISA account. So I can only jointly own only the other 50% of his investment according to his bank.

What is the best way to achieve what we want in this case - jointly owning all our assets..?

If you need to retain the ISA status, then you'd need him to sell half his ISA then gift it to you for you to invest in your own ISA (annual allowances permitting).

Or, you just hold everything jointly in a General Investment Account but you lose the tax advantages of an ISA.

Depends what is more important to you.

Thank you..

I prefer to own everything under joint names, as long as the financial implication of restructuring things is not too bad.

So if he puts all of the investments in a joint account, does this involve selling all of his investment in his ISA account first? And the coat of doing this would be the fees involved in selling a d buying again..?

You would also lose the tax free status. Do you need legal ownership or would beneficial ownership be sufficient? I think you can get a legal document drawn up to achieve that without changing the legal status. But I’m not a lawyer so check it achieves whatever you are trying to do.

I'm curious about your desire for everything to be held jointly when this is unlikely to be the most tax efficient way of doing things and hence there is a cost implication though you might not see it directly. There will be Capital Gains Tax implications with a general investment account that you don't get in an ISA, and these are reportable in a Self-Assessment tax return for each of you.

This is in the slightly mad, misplaced goal camp OP. It makes no sense. If you’re married, you could argue you half own it all anyway

So your DH has 50% of his portfolio in an ISA. How does he feel about transferring the other 50% to you to put in your own ISA (allowances permitting). It would then hold half each but separately. If you were to replicate his underlying investments, the funds should grow (fall) at the same rate.

Why would you want to lose the tax free status and earning potential of his ISA just so you can have half the money?

I'm not sure how else to achieve your goal without him transferring out the 50%

Thank you for all comments. Yes it's mad from tax point of view. But DH demanded to own half of a property that I own (inheritance) and for various reason I agreed to it - the process is almost completed. But he only wants to joint own the 50% of investment in his general account because of this ISA tax issue.

Previously when he moved into the house I owned, he wanted to put his name on it and I just agreed to do it. And I'm looking at using my leftover inheritance for a different investment, he would like to joint own that too. And it's all fine by me in principle as we are a team.

I know I shouldn't care so much about this as we are married and his is mine. But this is not my DH approach - hence wanting to joint own al of my assets. Just feel like I'm missing something. He is very savvy financially and has a job related to these stuff. I'm the opposite.

Be careful this has red flags all over it. What yours id joint but what's his is his?
Why are you just doing what he wants,?
If the valid of his ISA is the same as your house tell him yo leave it as is.

Very worrying update. See a solicitor to check.

@ForensicAccountant
I tried this idea with him. He says that if we split the investment pot in half the fees will rise as each portfolio has less amount. And as he won't benefit from ISA from next which is also tax inefficient. And we both want to own things together rather than divide things. I know he has all the good intention and right knowledge. But It's hard trying to find a solution that I also feel instinctively comfortable with.

Do you both have private pensions ?

Do you both have wills ?

I don't believe that you can have a joint ISA, because each individual person has an ISA tax free allowance

Why are you so keen to give someone half of everything ?

You could have remained single & kept everything in your name only

It sounds like you should take some advise from a free independent financial advisor, before investing any further money

Your DH may not be advising you in your best interests

Also look on the money saving expert website for advise

Do you work ? Your most tax efficient place for long term savings, may be in a private pension, rather than an ISA. However, you cannot access a pension until a certain age. Whereas an ISA is more accessible

Does your DH own any property ?

It cost money for you to transfer half your house to him, so why shouldn’t it cost money for him to transfer his investment to you?

I wouldn’t do this in a million years, but if I were going to I’d want half of the investments in my name. It doesn’t make sense for YOU not to use YOUR ISA allowance, and I’d be looking to balance any pension provision too.

How much are we talking OP? Where are they held? I may be able to tell you if it would cost more - this is not always the case at all. Either way sounds like he’s very keen on taking, but not the giving

^^ This

I know I shouldn't care so much about this as we are married and his is mine.

This is wrong.

Everything he holds is joint, but your inheritance is yours. Inheritances do not become marital assets unless you decide they are and intermingle them with your joint money (e.g. by putting it in a joint account or buying the marital home with it) so changing the ownership to joint is a massive benefit to him and of zero benefit to you.

You don't need to worry about the other assets being in your name as they are marital assets, but you DO need to worry about your financially savvy husband making demands that benefit him and disadvantage you and cost you money, while not reciprocating.

Inheritances do not become marital assets unless you decide they are you may want to inform some of the judiciary of this then. I’ve had clients gets a 50/50 on all assets INCLUDING inheritances, in court, during divorce.