Loans and ISA allowances

Trusts Discussion
1

Good afternoon

I am seeking some guidance relating to loans by surviving spouse to estate.

In this situation, the deceased had accumulated many years of ISA allowances. The surviving spouse wishes for this asset to be transferred to him. However, there are insufficient additional assets in the estate to be able to satisfy approximately £60,000 of pecuniary legacies. The surviving spouse has assets of their own to allow them to be able to transfer or loan the funds to the estate on the condition the ISA is transferred to him.

Please would someone be able to explain the mechanics of this arrangement or if perhaps they could direct me to a suitable precedent.

Many thanks

2

My understanding has always been that the ISA allowance and the actual ISA itself are two separate things, and that you can pass on the ISA allowance to the spouse even if the ISAs themselves are passing to someone else or are being encashed.