Jaskarn Pawar of Investor Profile explains what will happen to your ISA when you die…
Prior to April 2015, your ISAs would pass to your nominated beneficiaries, e.g. your spouse or children, but the money loses its tax status. That is – the money would be passed to you but wouldn’t be within an ISA account.
However, from April 2015 the Government announced that any ISAs that are passed on death to a spouse in a married couple or civil partner can be done so with the ISA status intact. So if you’re married or in a civil partnership the ISAs can be passed on as ISAs.
This means the surviving spouse can continue to benefit from the attractive tax treatment on income and gains on assets within an ISA.
The bad news is that if you’re not married then the old rules will still apply and the ISA will only pass to you as a normal asset, e.g. to be held outside of an ISA.
For more information on this subject, please do not hesitate to contact Jaskarn Pawar at Investor Profile on 01604 211234.