My question regards inheriting individual savings accounts (Isas). I am a retired business woman and I have built up a healthy amount of savings in Isas over the years. However, I have no spouse and no children. I would like to know if I can gift my Isas to my nieces and nephews in my will and they will be able to inherit them and keep the money within the tax-free wrapper of an Isa. I believe this is possible if you are passing Isas on to your spouse or children, so it seems unfair if I will be penalised for never marrying or having children.
New rules came into effect from April 2015, allowing a surviving spouse/ civil partner to inherit Isa savings and their tax-friendly status. The new system is considered to be fairer, as there is an assumption that couples are likely to save from joint income.
I am sorry to say that children, unmarried partners, and other family members are still not entitled to keep the tax-friendly status associated with any inherited Isa savings.