McHale & Co. Solicitors Blog

Changes to ISA rules on death of your spouse

Apart from the news about stamp duty did you notice that the Chancellor sneaked in some good news with regard to ISAs. Your ISA or Individual Savings Account will no longer die with you.

When we are helping someone deal with an estate after the death of a loved one, for example an application for Probate. The normal course of events is that the ISAs are automatically closed down and you lose the tax free status. This has some logic to it as the "Individual" is no longer with us. However the announcement in the Autumn Statement and the new rules mean a widow or widower can inherit the ISA savings. In effect they keep their tax-free status. This officially begins on April 6, 2015, but the chancellor has said anybody who died on or after 3rd December the day of the autumn statement will benefit.

According to the Treasury about 150,000 people who have an ISA and are married die every year but now their ISA tax advantages will no longer die with them. It's nice to see a little bit of good news as we head into the festive period.

The death of a loved one at any time of year is still very sad, if you need any advice or support on the legal side we would be happy to help:

Call 0161 928 3848


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