When someone passes away, their savings and investments — including ISAs — form part of their estate
Do you need probate to transfer an ISA to a spouse?
The short answer is: usually not. Most ISAs can be transferred to a surviving spouse or civil partner without waiting for probate. However, there are a few important conditions to understand.
This guide explains how ISA transfers work after death. Considered when probate may be required and how the surviving spouse can continue to benefit from tax-free savings.
How ISAs Are Treated After Death
An ISA (Individual Savings Account) stops being tax-free when the account holder dies. The funds, however, don’t automatically lose their value or disappear — they simply become part of the deceased’s estate.
At that point:
- The ISA provider freezes the account and stops all new deposits.
- The account continues to earn interest or investment returns until it’s closed.
- The funds in the ISA are then distributed according to the Will, or under the rules of intestacy if no Will exists.
If the deceased was married or in a civil partnership, the spouse or partner has a special option that allows them to keep the ISA benefits.
Transferring an ISA to a Spouse Without Probate
Most ISA providers allow direct transfer of the funds to a surviving spouse or civil partner without waiting for probate.
This is possible because:
- The spouse is automatically entitled to the funds if they were named as a beneficiary.
- Many banks and investment companies have internal policies allowing transfer of smaller balances without a Grant of Probate.
Each provider has its own threshold for this. For example, some may release up to £30,000 without probate, while others might require it for smaller sums.
Always contact the ISA provider directly to confirm their policy and what documentation they need — usually a death certificate and proof of identity for the spouse.
The Additional Permitted Subscription (APS) Allowance
Even though ISAs can’t be “inherited” in the usual sense, the surviving spouse or partner can receive an Additional Permitted Subscription (APS) — a special allowance that lets them invest the same amount as held in the deceased’s ISA, without losing the tax-free status.
For example:
- If the deceased held £50,000 in ISAs, the spouse can open or top up their own ISA by an additional £50,000 under the APS rule.
- This keeps the overall savings tax-free and avoids inheritance tax on the transferred funds if the spouse remains UK-resident.
The APS allowance applies only to married couples or civil partners. Unmarried partners or other relatives do not qualify.
When Probate May Be Required
Probate may still be needed if:
- The total value of the estate (including the ISA) exceeds the bank or investment provider’s limit for releasing funds without a Grant of Probate.
- The deceased held multiple ISAs or large investment portfolios spread across several institutions.
- The ISA is not being transferred to a spouse but instead forms part of the general estate to be distributed among several beneficiaries.
When probate is required, the funds from the ISA are released to the estate once the Grant of Probate (or Letters of Administration) has been issued. Executors can then distribute the funds according to the Will.
You can learn more about applying for probate here:
How to Apply for Probate with a Will (Grant of Probate)
How to Apply for Probate without a Will (Letters of Administration)
Managing Estate Costs While Waiting for Probate
If the estate includes multiple accounts or property, the Executors may face expenses such as solicitor fees, inheritance tax, or property insurance before probate completes.
A probate loan can help cover these short-term costs until estate funds are released.
Key Takeaways
- You don’t usually need probate to transfer an ISA to a spouse or civil partner.
- ISA providers often release funds directly once they receive the death certificate and proof of identity.
- The surviving spouse can benefit from the Additional Permitted Subscription (APS) to maintain the ISA’s tax-free benefits.
- Probate may still be required for large estates, complex investment holdings, or non-spouse beneficiaries.
- Executors should keep estate funds protected with specialist probate house insurance if property is involved.
If there is property in the estate, the executor must arrange probate house insurance — standard home insurance typically becomes invalid once the property is unoccupied or changes hands.
Next Steps
If you are unsure if probate is required, The Probate Network connects you with experienced, SRA-regulated solicitors who can explain your options and help you manage every stage of the probate process.
