Deceased

Where you have been notified of a client passing:

Please first update the status of the account to Deceased and stop any ongoing adviser fees via the portal. Please then notify us via Freshdesk ticket and include:

• Death Certificate
• Relevant documentation depending on the intention (Please refer to the below)

APS 

This is only applicable to ISA accounts.  Please see the process for this which can be located on the knowledge base - ISA APS- Additional Permitted Subscription.

Subject to HMRC rules, the surviving spouse or civil partner, if over 18, of a deceased ISA holder who died on or after 3rd December 2014, can pay in additional subscriptions in cash on top of the annual subscription limit up to the value of the deceased’s ISA at the date of their death, provided they have not transferred these rights to another ISA. This does not necessarily mean that the spouse/civil partner is entitled to the deceased’s assets or estate. 

ISA options 

Selling

1. Sell the investments and pay the proceeds to the administrator/beneficiary of the estate.
   1. PAPERWORK REQUIRED If this is being dealt with via solicitor, we will need a headed letter from them confirming the instruction and payment details alongside the death certificate and the Grant of Probate.
   2. If there is no solicitor, We will need the death certificate, the GOP (Grant of Probate - or equivalent) and a copy of a letter from the executors. Alternatively, the IFA can relay this information to us via ticket, based on them confirming with the executors. 
   3. We need confirmation of the bank details of where payment is to be made to (we will need name & address in order to electronically verify (unless we already hold the details on file on another account, or you have certified a bank statement, or you have confirmed due diligence has been completed).

Transferring

• Transference of the investments to the surviving spouse's / civil partner's ISA - this is only possible if they share the same ISA provider (see APS process)

Unless the beneficiary of the ISA is the deceased's spouse/civil partner then the only option available is to sell the investments and then pay the proceeds to those administering the estate or the beneficiary/ies. The proceeds can either be paid to a bank account belonging to the estate pending distribution, or can be transferred to a stocks and shares account. 

GIA Options:

Selling

PAPERWORK REQUIRED 

• If this is being dealt with via solicitor, we will need a headed letter from them confirming the instruction and payment details, alongside the death certificate and the Grant of Probate. 
• If there is no solicitor, we will need the death certificate, the GOP (Grant of Probate - or equivalent) and a copy of a signed letter from the executors. Alternatively the IFA can relay this information to us via Freshdesk ticket based on them confirming with the executors. 

We need confirmation of the bank details of where payment is to be made to. Please include name & address in order to electronically verify the account. (unless we already hold the details on file on another account, you have certified a bank statement, or you have confirmed due diligence has been completed).
 

Transferring

Sell the investments and pay and transfer the proceeds to an account we hold on our platform. This can be instructed via Freshdesk ticket and completed once the above mentioned documents have been provided. 

Please see important additional information below:

• GENERAL INVESTMENT ACCOUNT CUSTOMER AGREEMENT > In the event of Death

• The deceased’s legal representative(s) (i.e. executors, or solicitor if the executors have appointed one in their place) should inform us and their IFA/DFM as soon as reasonably possible.
• We will continue to hold onto the clients assets and monies until we receive a sealed GoP (or equivalent), together with instructions from the IFA/DFM (as detailed by the appointed personal representatives upon whom the T&Cs become binding)
• Income - not reinvested but held until we can pay it out as directed
• Joint Account - the next named holder is promoted to the Primary Holder (because with Joint Accounts all holders are entitled to 100% of the assets/monies within the account)
• SIPP/Offshore Bond - dependent on their T&Cs; they should be informed as soon as reasonably possible too. Client (and IFA/DFM) should be aware of those T&Cs and therefore of that process. We will act in accordance with the instructions of the TPPP or RL360°#

• ISA AND JISA CUSTOMER AGREEMENT > ISA Termination in the event of death

• When we are notified of the client’s death the ISA will be designated a ‘continuing account of a deceased investor’ until the earlier of completion of the administration of the estate, closure of the ISA or the third anniversary of the date of their death.
  • If, after a period of three years, the administration of the Account is ongoing and the ISA has not been closed, the ISA will cease to be a ‘continuing account of the deceased investor’. After this date, all subsequent income or gains will become taxable in the hands of the estate
  • It will continue to receive the tax advantages as per the ISA Regulations and any interest, dividends or gains arising from the date of death are exempt from tax.
  • No subscriptions can be made into a ‘continuing account of a deceased investor’.
  • The Adviser should advise the executors/personal representatives of their options and that the ISA can continue during the administration period for a maximum period of three years

• JISA - If the child dies, any money in the JISA will be paid to whoever inherits their estate which is usually one of the child’s parents but could be their husband or wife if they were over 16 and married.
  • we will need to see the death certificate before being in a position to close the child’s JISA

• SIPP CUSTOMER AGREEMENT > In the event of Death
  
   
  1. the assets held within the SIPP will be distributed in accordance with the regulations, the client’s age on death and the client’s wishes
  2. The SIPP will not normally be classed as being part of the client’s estate.
  3. It is the responsibility of your personal representative to notify the Scheme Administrator of your death and the intention of how the assets are to be distributed.
  4. The regulations dictate that all assets must be distributed within two years from the date of death. If your SIPP still holds assets after this date, these may be liable to a tax charge

Additional Information;

• GoP (Grant of probate) - this determines who has the authority to deal with the deceased’s property. Executors may confer this right to a solicitor. 
• LoA (Letter of authority) - Similar to a GoP but is granted where the deceased has not left a will.
• APS - this is only applicable to ISA accounts; this is an additional permitted subscription allowed on top of the annual subscription limit given to surviving spouses. This does not necessarily mean that the spouse is entitled to the deceased’s assets or estate. This is covered in the T&Cs.
• Small Estates - not all estates require a GoP; some may be able to apply for “small estate” or “excepted estate” status. Generally these estates are only worth under £35,000.  
• We would not automatically rebate any costs as part of the deceased process.