Inheritance ISA explained
Make the most of your annual tax-free savings with an extra allowance. Here’s how to set up and manage an Inheritance ISA.
What's on this page
Set up an Inheritance ISA
Apply in just 4 steps.
1. Register your partner’s death with us
- You’ll need to bring your partner’s death certificate (or a certified copy of it) into a branch or send it to: Bereavement Services, Nationwide House, Pipers Way, Swindon, SN38 1NW.
- We’ll update our records, then let you know about your partner’s Nationwide ISA and how much they’d saved by post.
- If your partner had an ISA with another manager, please get in touch with them and follow these same steps.
2. Register your inherited ISA allowance
In the pack, we ask for:
- the date of your marriage or civil partnership
- your partner's date of birth and the date they passed away
- your partner's address at the time of passing
- you and your partner's National Insurance numbers
- some ID, like a passport or driving licence, if you’ve never had an account with us.
When we receive the pack, we'll register your total Inheritance ISA allowance. If your partner only had a Nationwide ISA, this will take up to 10 working days. If they had ISAs with other managers that you'd like to include, up to 30 working days.
We'll let you know when everything's done and confirm your total allowance by post.
3. Start saving in your Inheritance ISA
Make your first deposit by:
- cheque, which should clear and show in your account within 6 working days
- paying in from a non-ISA Nationwide account
- paying in from a non-ISA account you have with another bank or manager.
After that, whenever you make deposits, you'll use paying in slips, which you'll get when you open your Inheritance ISA.
You can request more paying-in slips:
4. Close your Inheritance ISA
When you’re ready, you can move your money to:
- a Nationwide ISA using the Internet Bank or by seeing us in branch, which can take up to 5 working days
- an ISA you have with another manager, which can take up to 15 working days
- a non-ISA account, which means it will no longer have a tax-free ISA status.
If you close your Inheritance ISA without using all of your allowance, you can apply for a new one.
Time limit for applying and saving
The time limit for using your Inheritance ISA allowance is either within:
- three years of your partner passing, or
- 180 days of your partner’s estate being settled.
Whichever date is later.
When time is up for saving in your Inheritance ISA, you can either move your money to:
- another ISA, so it keeps its tax-free status, or
- any other account.
How much extra you could save with an Inheritance ISA
Any type of ISA your partner had, except a junior ISA, will count towards your total inherited allowance.
If your partner died on or before 5 April 2018
Your extra allowance will match the amount in your partner’s ISA(s) when they passed.
If your partner died on or after 6 April 2018
You have a choice. Your extra allowance could:
- Match the amount in your partner’s ISA(s) when they passed.
- Match the amount in your partner’s ISA(s) when the account is closed.
You can use the higher of the two amounts as your inherited ISA allowance. That’s unless you choose option 2 and start using the allowance before your partner’s ISA(s) is closed. If this happens, your extra allowance will match the amount in your partner’s ISA(s) when they passed (the same as option 1).
Keep in mind, your partner’s ISA can stay open and earn interest for up to 3 years after their passing. So, waiting to close their account could mean a bigger inherited ISA allowance for yourself.
Pay money in
You can only pay into your Inheritance ISA from accounts that aren’t ISAs.
Whenever you pay money into your Inheritance ISA, we’ll send you a letter to confirm:
- the deposit
- how much of your inherited allowance is left.
We’ll also send you a summary each year.
If you go over your allowance, we’ll send the extra money back to you by cheque or pay it straight into your Nationwide current or savings account (if you have one).
Take money out
You can take out money any time you like, but it won’t free up any allowance you’ve already used. Any money you pay in after that will count towards your inherited allowance.
If you’re looking to move money from an Inheritance ISA into another type of ISA, you can do this without it counting towards your annual ISA allowance.
Check your balance
You can check the balance of your Inheritance ISA:
Open more than one Inheritance ISA
You can have more than one Inheritance ISA. But each one must be with a different ISA manager. If you’re looking to open a new Inheritance ISA, you’ll need to get in touch with the ISA manager you’d like to save with.
Protecting your money
The Financial Services Compensation Scheme (opens in a new window) (FSCS) is a free, independent service that protects up to £85,000 of your eligible money at Nationwide.