ISA rule change

When doe the the Autumn statement change to let spouses take over their partners ISA actually start? A friends husband is not likely to last until the next tax year.
Derek
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On 07/12/14 12:33, Derek F wrote:

Item 5 in <https://www.gov.uk/government/news/autumn-statement-2014-16-things-you-should-know . 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 immediately).
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.
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On 07/12/2014 12:58, David Woolley wrote:

Thank you. Quote: "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. Derek
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But isn't one of the recent changes that one can transfer to one's heart's content between cash ISAs and Stocks and Shares ISAs?
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On 07/12/14 17:00, Derek F wrote:

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 cash): http://citywire.co.uk/money/beware-the-hidden-costs-of-inheriting-an-isa/a787777
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.
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On 07/12/2014 18:46, David Woolley wrote:

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? Derek
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Two thoughts:
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 with.
Won't be cheap but from what you say they have a good deal of capital to protect.
PS
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.
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On 07/12/2014 23:53, Robin wrote:

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 things farther. 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. Derek
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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.)
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On 08/12/2014 13:16, Robin wrote:

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. Derek
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