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ISA's and Unit Trusts

Although it may be possible to get a valuation from Google Finance it is best to write directly to the fund provider with details of the deceased and the fund, requesting a valuation.


For ISA's it may be possible, if certain conditions are met, for a surviving spouse or civil partner to transfer the ISA into their own name using an additional ISA allowance equivalent to the value of the deceased's ISA at the date of their death. Any such additional allowance is known as "Additional Personal Subscription" (APS) and can be used to transfer the ISA into the name of the surviving spouse or civil partner and retain the tax-exempt status. Any such APS is in addition to the normal annual allowance (currently £20,000). It is also possible for a stocks and shares ISA to be transferred to a surviving spouse or civil partner or for the stocks and shares to be sold and the cash funds to be invested in a new cash ISA.

This APS is available to the surviving spouse or civil partner even if they do not inherit the deceased's ISA themselves - however, they would obviously have to use their own resources to make an ISA investment larger than the normal annual allowance under such circumstances. Where more than one ISA was held by the deceased the value of the ISA's can be aggregated to establish the APS figure. In order to qualify for the APS the deceased and their surviving spouse or civil partner must have been living together prior to the death, unless one of them was in residential care.

Normally when a person dies the tax-exempt status of their ISA ceases and any income becomes taxable. If APS is available it can be claimed up to 3 years from the date of death or 180 days after the estate has been administered, if longer. Therefore, when you advise the ISA company of the death of the deceased it is worth enquiring if they are willing to accept APS transfers. Since not all ISA providers will do this, you may need to consider an alternative provider.

Unit trusts

When you advise the issuing company of the death of the holder it is worth enquiring of the procedures to sell or transfer the shares or units once probate has been granted. They will usually provide the necessary paperwork when they acknowledge the notification of death.

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