What happens to my ISA if I die?
If you die, the money and investments you hold in your Stocks and shares ISA will be passed on to your beneficiaries. After your death, your Stocks and shares ISA will retain its tax benefits until one of the following things happens:
- The administration of your estate is completed
- The Stocks and shares ISA is closed by your beneficiary
If neither occurs within three years from your date of death, the Stocks and shares ISA will be closed.
In your will, you can leave your ISA to whoever you like. And if you have a spouse or civil partner, they can inherit your ISA's tax-free status too – as a one-off boost to their own ISA allowance. That way you can pass on not just the wealth in your ISA to them, but its tax-free status too. This inherited allowance is equal to the value of your ISA when you die, or when it's closed (whichever is higher).
Let’s say, for example, you have an ISA worth £30,000. When you die, your spouse or civil partner will receive an additional one-off ISA allowance of £30,000, on top of their standard ISA allowance of £20,000.
Your beneficiary can use your inherited ISA allowance with us as long as you both have AJ Bell Youinvest Stocks and shares ISAs. We don't at present accept additional ISA allowances that are transferred from other providers.
Please remember that tax rules can change in the future, and how you’re taxed will depend on your personal circumstances.