What happens to an ISA when someone dies?
Last reviewed October 2026
When an ISA holder dies, the account becomes a 'continuing account of a deceased investor'. It keeps its tax-free status until the estate is finished or three years after the death, whichever comes first. A surviving spouse or civil partner can also get a one-off extra ISA allowance, called an additional permitted subscription, equal to the value of the ISA. The ISA's value still counts as part of the estate for probate and inheritance tax. The provider tells you what proof it needs to close or transfer it.
Steps
Tell the provider, ask for the value at the date of death, then follow their release process.
Frequently asked questions
Is an ISA free of inheritance tax?
No. ISAs are free of income and capital gains tax, but they count towards the estate for inheritance tax, unless they pass to a spouse or civil partner.
Can a spouse take over the ISA?
Not directly, but they can use the extra allowance to put the same value into their own ISA.
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