As I read it, he was free to drop dead from last Wednesday. It
appears that the money comes out of the wrapper but can be re-invested
at the start of the next tax year (although probate will probably be the
limiting factor. if the spouse doesn't have enough cash available
As far as I can tell, none of the necessary legislative processes have
taken place yet, so this is a promise, rather than actual law.
"From 3 December 2014, if an ISA holder dies, they will be able to pass
on their ISA benefits to their spouse or civil partner via an additional
ISA allowance which they will be able to use from 6 April 2015.
The surviving spouse or civil partner will be allowed to invest as much
into their own ISA as their spouse used to have, in addition to their
normal annual ISA limit"
It says via an additional ISA allowance. With a cash ISA that would be
straight forward but how would it apply to a Self Select Stocks and
Shares ISA. He has one with a considerable sum in it but she only has a
cash ISA. I imagine ISA providers would have charges if some bed and
breakfast deal is possible.
I think you will have to wait for the actual legislation. However, this
is one view on the subject (you will almost certainly have to go through
Incidentally, unless the spouse has a financial adviser, they may well
prefer to have the simplicity of cash, or, just possibly, a collective
investment. If they have a financial adviser, I would think they should
be using them, rather than usenet.
The story is that they are in their 80's he has had dementia for over
five years and so has neglected his considerable investments. He was
previously very astute and also has a SIPP. They have no family or near
relatives and live in a house with about half an acre of ground.
Everything coming in the post during that time has just been put into a
suitcase. The wife who has power of attorney struggled with their tax
returns and a couple of years ago started to use an accountant who
evidently has been late filing their returns and missed things out.
The husband recently went into a care home and the wife asked the
accountant for financial advice. He advised a financial advisor who came
to see her. She was evidently advised to buy bonds and put them into a
single life annuity to pay for his future care. Even the wife realised
that given his health that was not a good move.
By some strange coincidence a dodgy ex lawyer friend of the husband
turned up at the same time. The adviser spoke mostly to him and gave him
her card thinking that he would probably influence the wife.
The legal friend has borrowed never repaid money from him and managed a
rental property for him than no rent has ever been passed over for.
How does she find a financial advisor to trust and sort out their mess?
a. is this accountant qualified and a member of a professional body?
(As you probably know, anyone can hold themself out as an "accountant".)
If so, they ought to be able to recommned an IFA but from what you say
about their performance.....
b. does she have a lawyer (*not* the "friend" - perhaps the one who
drew up their wills?) she would trust to point her in the direction of
an adviser? And in view of what you say about the accountant, that
adviser might be a chartered accountant to take over their tax returns,
sort out any time bombs ticking with HMRC, and check just how much they
are worth so as to give a financial adviser a clear picture ro start
Won't be cheap but from what you say they have a good deal of capital
I am not so sure that a single life annuity would *necessarily* be a bad
buy as his dementia and other health conditions might give a very good
enhanced rate. But I don't know why she should buy bonds first so there
was probably something cleverer involved - too clever for me these days.
I don't know if he is or not as my contact with her is by phone as I now
live at the other end of the country.
They made out their wills when they got married over 50 years ago
leaving everything to each other. She asks for advice but never takes
And in view of what you say about the accountant, that
My concern is the flat this friend is managing that they don't get rent
for. The 'friend' now has a property company and his workers have done
some work on their house and he says 'I'll take that of what I owe you'
Obviously no rental has been declared for this flat. When I mention that
she does not want to know.
It must be nearly thirty years since he bought the flat for his mother
who would not move into it and it laid empty until his friend took it
over. There is a big capital gain there to be taken into account.
But not as it seems that his live expectancy is as short as she tells me.
Even more evidence that she needs an independent, (more) professional
adviser. Eg accountant really ought to have been on top of the property
business *if* she told the accountant the property existed. But getting
her to pay for one and dump the friend is easier said than done.
If she does not have/won't talk to a trusted solicitor is there anyone
else who might act as intermediary? Eg vicar? (Years ago I would have
said bank manager but today that'd be a sick joke.)
She has buried her head in the sand over the property and did not
mention it. Way back I introduced him to someone who would have been an
ideal tenant but as usual he prevaricated.
I doubt if a vicar would want to get involved. They were both
Churchgoers albeit different churches. She must still have some church
contact as she said that the church sent her flowers after he went into
the care home. I did say to her that in Bank manager days things would
have been easier.
I had suggested to her that she ask the church for recommendations for
his care home as I found a good one for my mother that way. I also gave
her names of four local to her that specialised in dementia patients.
Instead a man who came in one morning a week to bath him and take him to
appointments found her one two bus changes away that she is now unhappy
with and where he already has had two serious falls.