Spouses can inherit ISA allowance without probate, says Which? expert
UKPulse Money Desk
Surviving spouses or civil partners can claim an Additional Permitted Subscription (APS) for an ISA allowance without waiting for probate, according to a Which? Money expert.
- The APS allows a surviving spouse or civil partner to inherit an ISA allowance equivalent to the value of their deceased partner's ISA.
- This transfer can occur without a lengthy legal process like probate by using a Small Estates Form from the ISA provider.
- The total value of the ISA must be within the ISA provider's probate limit for this process to apply.
Surviving spouses and civil partners can inherit an ISA allowance without needing to wait for probate to be granted, according to Bill Wilkinson-Hoy, a Which? Money expert. This is possible through the Additional Permitted Subscription (APS) rules.
The APS allows a surviving partner to claim an increased ISA allowance, equivalent to the value of their deceased spouse or civil partner's ISA at the time of their death. This is in addition to their own ISA allowance.
To facilitate this, ISA providers offer a Small Estates Form, also known as a Small Estates Declaration or Indemnity. This form can be used as an alternative to a grant of probate, enabling the transfer of the deceased's assets or the claim of the APS without a lengthy legal process. However, the total value of the ISA must be within the ISA provider's specific probate limit.
What this means for you: If you are a surviving spouse or civil partner, you may be able to inherit your partner's ISA allowance without waiting for probate by using a Small Estates Form from the ISA provider, provided the ISA value is within their limit.