ISA Rule to benefit Spouses

Article

22 May, 2015

New rules came into effect in April which grant people additional ISA allowances following the death of a spouse or civil partner. For deaths after the 3rd December 2014 the surviving spouse or civil partner will now receive the deceased's one-off ISA allowance.

When a married or in a civil partnership ISA saver dies, the surviving partner is now entitled to an extra ISA allowance that is equal to their partner's Isa balance on the date they died.

Key Facts:

  • The one-off additional allowance is equal to the value of the ISA on the date of death
  • Cash must be re-invested within three years of the spouse's death, or if later,180 days from completion of the administration of the estate
  • The allowance can be re-invested with any ISA manager
  • The ISA allowance passes to the spouse or civil partner even if the investments do not
  • This does not effect their own ISA allowance for 2015/16 of £15240

For further information or advice please contact Peter Toner on 01772 220383 or email Peter Toner

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