Although the new rules allowing you to take advantage of your late spouse’s ISA allowance have been in force for just over a year, many people are still not taking advantage of them.
If your spouse died on or after the 3rd December 2014 and held an Individual Savings Account (ISA) then you are entitled to make additional subscriptions into an ISA, over and above your usual annual subscription limit.
- You can pay an amount equal to the balance your late spouse held in their ISA(s) at the date of death (including any interest earned up to that date) into one or more ISA’s in your own name. This amount is known as the ‘additional permitted subscription allowance’.
- This allowance is in addition to your own personal ISA annual allowance.
- You do not have to inherit the money from your late spouse’s ISA(s) to take advantage of this additional allowance.
- You can make additional permitted subscription allowance payments into an ISA up to 3 years after the death of your spouse (or 180 days after their estate is settled if later). If your spouse died between 3rd December 2014 and 5 April 2015, the time limit begins from 6th April 2015 rather than from the date of death.
- To be eligible you must have been married or in a civil partnership and living with your spouse/civil partner (not separated) at the time of their death. If you were living apart because one or both of you were living in a care home at the time of death this will not affect your eligibility.
There are many legal issues that you might need assistance with following the death of a spouse. For sympathetic and professional advice please contact Jeanette Berry, Head of our Private Client team on 01282 422711 or email firstname.lastname@example.org.