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Where Taxpayers and Advisers Meet

Additional ISA Allowance

Another1
Posts:32
Joined:Sun Apr 04, 2021 12:17 pm
Additional ISA Allowance

Postby Another1 » Tue Apr 19, 2022 7:00 pm

Following a spouses death and where a Will proclaims that the deceased’s estate is inherited absolutely by the surviving spouse,and insofar as the estates investments are all In ISAs,I understand that when sold and passed to spouse,that an ‘Additional ISA Allowance’ can be obtained and cash resulting from the sale can be reinvested using this allowance,preserving ISA status for surviving spouse.The resulting ISA accounts would be in his/her name.

If the above is correct would this benefit be lost to the surviving spouse if the Will had an ‘IPDI’ associated with it whereby the deceased assets were transferred to Trustees,and s.s. only had access to the deceased’s assets by way of ‘loans’ from the trustees

Would the Trustees be able to make use of this additional allowance and set up a Trustees ISA?…but with no benefit to s.s.

pawncob
Posts:5090
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Additional ISA Allowance

Postby pawncob » Wed Apr 20, 2022 9:45 am

https://www.gov.uk/individual-savings-accounts/inheriting-an-isa-from-your-spouse-civil-partner
I don't think the Trustees could inherit the ISA, but you could always vary the will.
With a pinch of salt take what I say, but don't exceed your RDA

Another1
Posts:32
Joined:Sun Apr 04, 2021 12:17 pm

Re: Additional ISA Allowance

Postby Another1 » Wed Apr 20, 2022 12:54 pm

Is it impossible for surviving spouse to make use of the Additional ISA Allowance if the Will includes an ‘immediate post death interest’,when only having access to deceased’s estate by loans from Trustees?

pawncob
Posts:5090
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Additional ISA Allowance

Postby pawncob » Wed Apr 20, 2022 3:18 pm

https://www.accountingweb.co.uk/any-answers/isa-held-in-bare-trust-for-another
With a pinch of salt take what I say, but don't exceed your RDA

Another1
Posts:32
Joined:Sun Apr 04, 2021 12:17 pm

Re: Additional ISA Allowance

Postby Another1 » Wed Apr 20, 2022 4:57 pm

Thanks…but unfortunately does not answer my question….


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