Do I Need Probate to Access an ISA After Death?

An ISA does not bypass probate, and it loses its tax-free status on death. Most providers ask for the Grant of Probate before releasing anything beyond a small balance, though a surviving spouse can still claim the APS allowance.¹

ISAs are often assumed to be simple assets that pass automatically or avoid probate. They do not. An ISA forms part of the deceased's estate on death, is subject to the usual probate process, and loses its tax-free status the moment the holder dies. For executors, the practical question is whether the ISA provider will release funds without the grant of probate - and the answer depends on the provider and the balance held.

What happens to an ISA when the holder dies

For deaths since 6 April 2018, the ISA becomes a 'continuing account of a deceased investor'. Interest on a Cash ISA and dividends or gains on a Stocks and Shares ISA stay free of income tax and CGT until the administration is completed, the account is closed, or the third anniversary of the death, whichever comes first. Only income after that point is taxable in the hands of the estate. The ISA's value still counts towards the estate for inheritance tax.

The ISA forms part of the deceased's estate and passes under the terms of the will (or the rules of intestacy if there is no will). It does not pass automatically to a named beneficiary the way a pension or a life insurance policy written in trust might. If the will leaves "the residue of my estate" to a particular person, the ISA forms part of that residue.

For ISA providers, the account will be frozen once they are notified of the death. Write to the provider with a copy of the death certificate and ask them to confirm the date-of-death balance. You will need this figure for the probate application and, if IHT is relevant, for the IHT account. Our guide to when you need probate explains the probate process in more detail.

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Will the provider require the grant of probate

Most ISA providers require the grant of probate before releasing funds, particularly for larger balances. There is no fixed legal threshold - it is a matter of each provider's policy - but as a rough guide:

• Balances below roughly £5,000 to £15,000 may be released on production of the death certificate and a completed bereavement claim form, without the grant.
• Balances above that threshold almost always require the grant of probate (or letters of administration if there is no will).

These thresholds vary significantly between providers. Always contact the specific provider to confirm their policy. Do not assume a small balance will be paid without probate until you have confirmed it with them. Our guide to bank and provider probate thresholds covers this in more detail for a range of institutions.

For Stocks and Shares ISAs, the provider may liquidate the investments and hold the cash pending the grant, or they may offer the option of an "in specie" transfer - moving the investments as-is rather than selling them first. The option available depends on the provider and the circumstances. Ask early so you can factor this into your timeline.

The Additional Permitted Subscription for surviving spouses

Where the deceased was married or in a civil partnership, the surviving spouse may be entitled to use the Additional Permitted Subscription (APS). This is a one-off increase to the surviving spouse's ISA allowance, matching the value of the deceased's ISA at the date of death. It is separate from the annual ISA allowance and does not affect it.

The APS allows the surviving spouse to put an additional lump sum into their own ISA - up to the value of the deceased's ISA - and shelter it from tax going forward. This does not mean the money itself transfers from the deceased's ISA into the surviving spouse's ISA tax-free. Rather, it creates additional subscription room that the surviving spouse can use with money they already have or money received from the estate.

The APS must be used with a provider that accepts it - not all providers do - and there are time limits. The surviving spouse must apply for and use the APS within three years of the date of death, or within 180 days of the completion of the administration of the estate if later. The specific APS rules can be complex; the ISA provider can confirm what documentation they need and the deadline that applies.

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Practical steps for executors

When dealing with ISAs as part of an estate, work through the following:

• Write to the ISA provider with the death certificate as soon as possible and ask for the date-of-death valuation. Most providers have a dedicated bereavement team.
• Ask the provider what they require to release funds - specifically whether they need the grant of probate or whether they will release on the death certificate alone given the balance.
• If a Stocks and Shares ISA is involved, ask whether they will liquidate or transfer in specie, and what the implications are for timing and any charges.
• If the deceased had a surviving spouse, flag the APS opportunity to them and ensure they are aware of the time limits.
• Keep a record of any income or growth generated by the ISA after the date of death, as this is taxable and may need to be reported in the estate's tax return.
• Once you have the grant of probate, send certified copies (the Probate Registry will provide sealed copies) to the provider to progress the release of funds.

Common mistakes to avoid

• Assuming ISAs skip probate. They follow the same threshold rules as other accounts.²
• Overlooking the APS. A surviving spouse can preserve the tax shelter — claim it in time.¹
• Forgetting Inheritance Tax. The ISA value is part of the estate.³

Frequently asked questions

Do I need probate to access an ISA after death?

Usually yes for larger ISAs — most providers require the Grant of Probate above their own threshold. Smaller balances may be released on a declaration.²

Does the ISA keep its tax-free status?

For a while, yes: income and gains stay tax-free until the estate is settled, the account closes or 3 years pass, whichever is first. It still counts for inheritance tax, and a surviving spouse or civil partner can claim an Additional Permitted Subscription to shelter an equivalent amount in their own ISA.¹

Is a Cash ISA treated differently from a Stocks and Shares ISA?

The probate and APS rules are the same. A Stocks and Shares ISA may need the investments valued and sold or transferred as part of the process.¹

Can a spouse inherit the ISA allowance?

Yes, through the Additional Permitted Subscription, which gives them an extra ISA allowance equal to the deceased's ISA value.¹

What if the ISA is below the provider's threshold?

It can usually be released on the death certificate and an estate declaration, without a grant.³