Passing on ISAs: What advisers need to know 

ISAs cannot be held in trust

clock • 4 min read

While ISAs are tax-efficient investment vehicles during life they can be the opposite when a client dies. Andy Woollon outlines the options for savers and highlights why advice is essential

While ISAs are a tax efficient way to build up wealth, they are far less efficient when it comes to passing it on. So what are the inheritance tax implications of ISAs and how can advisers help clients to mitigate them?  Inherited ISA rules  Inheritable ISA rules were introduced in April 2015, meaning an individual can inherit the value of their deceased spouse's or civil partner's ISAs, providing they died on or after 3 December 2014. Known as ‘additional permitted subscription' (APS) allowance, it is based upon the value of the ISAs at date of death and is in addition to the survi...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Estate planning

Estate planning: Testamentary capacity in the spotlight

Estate planning: Testamentary capacity in the spotlight

'My top tip for futureproofing your will is follow the golden rule'

Nicola Bushby
clock 18 March 2024 • 4 min read
The role of advisers in implementing clients' testamentary wishes

The role of advisers in implementing clients' testamentary wishes

How to avoid challenges to a will after a client death

Elizabeth Sainsbury and Carmen Barragan-Lopez
clock 15 January 2024 • 4 min read
Part of the plan: LPAs are the missing piece of the advice jigsaw

Part of the plan: LPAs are the missing piece of the advice jigsaw

Legislation aims to improve lasting power of attorney system

Justin Rourke
clock 23 November 2023 • 2 min read