Deceased

This guide explains the process for managing accounts where an investor has died. It covers:

• How to update the account status and stop fees
• What documents are required
• Trading restrictions
• Product-specific options for GIA, ISA, JISA and SIPP
• APS applications and APS transfers
• IHT payments 
• Book cost adjustments

What you must do first:

• Update the investor’s status to Deceased on the adviser portal.
• Stop all adviser fees.

We will verify that the adviser fee and deceased status updates have been completed. If not, we will request that you update these. We will also archive any existing income options and apply a new income option to ensure that any accrued income or available balances are paid out automatically.

DFM Fees

If you are using a Discretionary Fund Manager (DFM), you or the DFM must send us a request confirming that their fees should be stopped.

If no action is taken, DFM fees will continue to be charged. If you need support with this, we can contact the DFM on your behalf.

Notify us via Freshdesk

Upload all relevant documents, including copies of death certificates and other official forms, via Freshdesk. Original documents are not required unless specifically requested.

• GoP - Grant of Probate: A legal document authorising the executors named in the will to manage the deceased’s assets. Executors may delegate this authority to a solicitor.
• LoA - Letters of Administration: Issued when there is no valid will. Gives the administrator similar authority to that granted under a Grant of Probate.
• Small or Excepted Estates: Some estates under certain thresholds (for example under £35,000) may not require GoP or LoA. Evidence confirming small or excepted estate status must be provided if relying on this route.
• Executor Authority: A clear written instruction from the executor(s) is required for any withdrawal, transfer or administrative action. If a solicitor is acting on behalf of the estate, instructions must be provided on headed paper.
• Bank Verification: For any payment out, a certified bank statement (dated within the last 6 months), adviser confirmation of due diligence, or confirmation that verified bank details already exist on another account with us must be provided.
• APS - Additional Permitted Subscription: Applies only to ISA accounts. It allows a surviving spouse or civil partner to make an additional ISA subscription equal to the value of the deceased’s ISA at the date of death. It does not transfer ownership of assets.
• No Automatic Rebates: Costs and charges are not automatically rebated as part of the deceased process. Any fee or cost adjustments must be explicitly instructed or agreed.
• IHT - Inheritance Tax: The estate may be subject to IHT. Executors are responsible for calculating and reporting any liability to HMRC, and for providing clear instructions where a payment is to be made from the deceased’s account.
• Valuations for Date of Death: A valuation as at the date of death must be produced for APS applications and book-cost adjustments. Advisers can generate this via the adviser portal using a custom Statement & Valuation report.

Once we are notified of an investor’s death and the account is marked as Deceased, the following restrictions apply:

General Trading Restrictions:

• No New Investments: Once an account holder has passed away, no new investments can be made.
• No Fund Switching: Switching funds from one asset to another within the account is generally prohibited.
• No Regular Rebalancing (for Non-ISA Accounts): Automatic or manual rebalancing of non-ISA accounts (e.g., GIA) is not allowed unless instructed by legal representatives or estate executors.
• No Trading in Non-ISA Accounts: For GIAs, trading is typically halted upon notification of the account holder's death.

ISA Account Exception:

• Selling Assets: Selling investments within ISA accounts is permitted to liquidate the account for the estate’s processing. 
• Rebalancing: Rebalancing within ISA accounts may be permitted to manage risks, but switching assets from one type to another is not allowed.

Case-by-Case Considerations: Requests for fund switching or specific trading instructions will be reviewed internally on a case-by-case basis. Please raise any special requests, and they will be assessed by the appropriate internal teams before any actions are taken.

Overview: The value of the deceased's estate may be subject to Inheritance Tax (IHT). Executors are responsible for calculating the IHT liability and reporting it to HM Revenue and Customs (HMRC). It's important to ensure that any applicable taxes are paid on time to avoid penalties.

Payment Instructions: To facilitate the payment of IHT directly, we require a copy of the instruction sent via Freshdesk that includes the following details:

• Bank Details: The bank account information for the IHT payment is provided in the letter from HMRC, which should be uploaded to Freshdesk as part of the documentation.
• Clear Instruction: A written request from the executor authorising the payment of IHT from the estate’s funds must also be included. This should clearly state the amount to be paid and confirm that the payment should be made to HMRC.

Our process: Once we receive the necessary documentation, we will process the payment using our standard withdrawal process. Payments are typically made within 3-5 days.

Documents Required

• Death certificate
• GoP/LoA or small/excepted estate evidence
• Executor authority confirming the instruction
• Bank verification - dated within the last 6 months, (required for withdrawals only; not required for transfers) 
• Solicitor letter if a solicitor is acting on behalf of the estate

Withdrawals

With solicitor representation

• Provide a headed solicitor letter confirming the instruction and payment details
• Provide the death certificate and GoP/LoA (or small/excepted estate evidence where applicable)

Without solicitor representation

• Provide the death certificate
• Provide GoP/LoA or small/excepted estate evidence
• Provide a signed letter or clear written instruction from all authorised executors
• The adviser may confirm the instruction via Freshdesk after verifying executor authority

Our process

• We place any required sales to generate cash once all documentation is received. 
• Once settlement completes, funds are released. Payments are normally made within 3-5 working days after settlement.

Transfers

Cash transfer

• Investments are sold
• Once proceeds settle, cash is transferred to relevant account as instructed

In-specie transfer

• Executors must provide written authorisation
• Assets are transferred directly rather than sold
• Bank verification is not required

Our process

• For cash transfers: we sell the account, track settlement, and move the funds internally
• For in-specie transfers: we move the assets upon approval of documentation

Jointly Held GIA Accounts (Including Book Cost Updates)

Where a GIA is held jointly and one account holder dies, the deceased’s share passes to the surviving holder. 

We will update the account to remove the deceased person record and confirm the surviving holder as the sole account holder once the Death certificate has been received. 

Withdrawals, transfers, or account closure require separate instruction and will be processed under the standard GIA options.

A book cost adjustment is required for CGT purposes. The adviser must calculate the revised book cost and submit it via Freshdesk. (A valuation statement as of today and as of the date of death can be generated via the adviser portal to gather the required information).

Book Cost Calculation

The revised book cost should be 50% of the current book cost, plus 50% of the value as at the date of death.

Example: If the book cost is currently £1 and the value is £1.50 at the date of death:

• £1 x 50% = £0.50
• £1.50 x 50% = £0.75
• The new book cost = £1.25

Documents Required

• Death certificate
• Grant of Probate or Letters of Administration, or small/excepted estate evidence
• Executor authority
• Bank verification - dated within the last 6 months

Withdrawals

With solicitor representation

• Headed solicitor letter confirming the instruction and payment details
• Death certificate
• GoP/LoA or small/excepted estate evidence

Without solicitor representation

• Death certificate
• GoP/LoA or small/excepted estate evidence
• Written instruction from all authorised executors
• Adviser confirmation via Freshdesk once authority has been verified

Our Process

Withdrawals are processed once documentation is complete. Payments are normally made within 3-5 working days after settlement.

ISA assets cannot be transferred directly into a GIA. Where the beneficiary is not a surviving spouse or civil partner, the ISA must be encashed.

Documents Required

• APS application form
• Death certificate
• Grant of Probate or Letters of Administration where required
• ISA valuation as at the date of death

Application Process

• Adviser generates a date-of-death valuation via the adviser portal
• APS application form is completed and submitted via Freshdesk
• Where required, an ISA account must already exist or be opened

Portal Submission Note: For APS applications or transfers, a partial transfer must be submitted via the portal. Generated forms must not be uploaded to investor documents as with a standard transfer. This submission is for expectation purposes only.

Our Actions

Cash APS

• Deceased ISA is sold
• Proceeds are transferred to the spouse or civil partner’s ISA

In-Specie APS

• Assets are transferred directly without sale

Confirmation is provided once complete and the ticket is closed.

Documents Required

• APS transfer form
• Death certificate
• Grant of Probate or Letters of Administration where required

Process

• We will contact the existing provider to confirm the APS allowance
• Follow-ups are issued every two weeks (After three unsuccessful follow-ups, escalation is attempted by phone)
• Once confirmed (in writing), evidence is shared and the client can then issue the funds to us.

Portal Submission Note: For APS applications or transfers, a partial transfer must be submitted via the portal. Generated forms must not be uploaded to investor documents as with a standard transfer. This submission is for expectation purposes only.

APS Eligibility

• The spouse or civil partner must have been living with the deceased at the date of death
• They must not have been legally separated
• APS must be claimed within 3 years of death or within 180 days of estate administration completion
• All APS subscriptions must be made with a single manager
• Partial APS transfers are not permitted

Documents Required

• Death certificate
• Grant of Probate or Letters of Administration, or small/excepted estate evidence
• Executor authority
• Bank verification - dated within the last 6 months

Withdrawals

• Investments are sold and funds are released once settlement completes. Payments are normally made within 3-5 working days.

Confirmation is provided and the ticket is closed

SIPP accounts are managed separately by the SIPP team and follow a different process.

For full guidance on SIPP cases, including required documentation, benefit options and HMRC timeframes, please refer to the Deceased SIPP Process guide:

https://hubwisecouk.freshdesk.com/support/solutions/articles/76000086691-deceased-sipp-process

• Submit a separate Freshdesk ticket for all SIPP-related instructions
• Tickets containing both SIPP and non-SIPP products will be split
• The SIPP team will confirm requirements and next steps directly