Understand your options

There are number of options for beneficiaries who inherit investments. You’ll have to decide what to do with the money, once you’ve obtained the necessary paperwork. Find out what you’ll need for each option below.

I’d like to…

Use the money to invest in an ISA

You can use the money to invest in an ISA. The 2017/18 ISA allowance is £20,000, and any remaining inherited money that’s over the ISA allowance will be paid to the registered executors or administrators, or probate solicitor or invested as instructed. Please remember you cannot open an ISA in the same year with another provider. If you are the spouse or civil partner of the deceased and the money you have inherited is in an ISA, please see the section below on the additional ISA allowance for spouses and civil partners.

What you need to do

  1. Complete an ISA Redemption Form or Investment Funds Redemption Form to release the money being used to fund your ISA
  2. Complete an Investment ISA Application Form to open an ISA or an ISA Top Up Form to add money to an existing Fidelity ISA
  3. Send us both of those, along with the Grant of Representation or Small Estates Form
  4. Be sure to read the Doing Business with Fidelity document
  5. If you are choosing new investments you should also read the Key Investor Information Document for each investment, where applicable. These can be found on each factsheet

The value of investments can go down as well as up so you may not get back the amount invested. Please remember, the value of tax savings in an ISA depends on personal circumstances and all tax rules may change in the future. This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to an authorised financial adviser.

Sell the investments

 What you need to do:

  1. If you’re selling investments held within an ISA, complete an ISA Redemption Form
  2. If you’re selling other investments, complete an Investment Funds Redemption Form
  3. Send the relevant forms to us, along with the Grant of Representation or Small Estates Form

 

What we’ll do:

  1. Sell the holdings as soon as we can, and send a cheque for the proceeds plus any cash that was held in the account to the executors, administrators or probate solicitor
  2. Send you a Confirmation of Transaction, followed by a closing statement covering the period since the investor’s death.

Transfer investments into new names

Transferring investments into a new name varies according to whether or not the initial investments are held within an ISA:

Transfer of ISA investments

What you need to do:

  1. Complete a Reinvesting ISA to Investment Funds Form
  2. If you are transferring the investments into a joint account, please also complete a Joint Holder Supplement Form
  3. Send the forms to us, along with the Grant of Representation or Small Estates Form

 

What we’ll do:

  1. Sell the holdings and reinvest the money in your name, which means the money will not be invested whilst we move it.
  2. Third party funds could take a maximum of three days to move
  3. Fidelity funds are moved on the same day

Transfer of other investments

What you need to do:

  1. Complete a Stock Transfer Form
  2. To transfer funds into offshore investments you’ll need to complete a Fidelity Funds II (SICAV) Form
  3. Send the forms to us, along with the Grant of Representation or Small Estates Form
  4. Be sure to read the Doing Business with Fidelity document and our Stock Transfers Guide
  5. If you are choosing new investments to invest in you should also read the Key Investor Information Document for each investments, if applicable. These can be found on each factsheet

Once you’ve decided on which option to take, you can use our handy checklist to make sure you've got everything you need, then tell us what you want to do with the investments from the estate. Remember, before we can sell or transfer holdings, we need a sealed copy of the Grant of Representation or, for smaller estates, a Small Estates Form. Find out more from our Probate page.

Additional ISA allowance for spouses or civil partners

Spouses and civil partners are entitled to an additional ISA allowance equal to the value of the ISA holdings held by the investor at their date of death.

A valuation of your spouse’s entire Fidelity investments, including the value of ISA investments, will be sent.

The allowance is available to use up to three years from date of death, or 180 days from probate being granted; whichever is later.

You still have your own personal annual ISA allowance, currently £20,000 for tax year 2017/18.

If your spouse or civil partner’s ISAs were held with other providers but you wish to invest with Fidelity, you’ll need to transfer your allowance to us first. Just complete the Inherited ISA Allowance Transfer Form.

If you don’t want to invest with Fidelity, you can transfer the allowance to another ISA manager.

3 ways to use your new ISA allowance

Invest your own money

  • There’s no need to wait for the Grant of Probate to use this allowance and you can start investing from the date of death
  • Simply complete an Inherited ISA Allowance Form
  • You can invest by cheque any number of times, as long as you don’t go over the available allowance (which is £20,000 for tax year 2017/18) or expiry date of the allowance
  • You should read Doing Business with Fidelity along with the Client Terms. Depending on the investments you choose, you should also read the relevant Key Investor Information, found on the factsheet.
  • If a financial adviser is dealing with this process, please ask them to contact FundsNetwork to download the relevant adviser related forms.

The value of investments can go down as well as up so you may not get back the amount you invest. Please remember, the value of tax savings in an ISA depends on personal circumstances and all tax rules may change in the future.

Use the money you already have with us

  • Make your money more tax efficient by moving it into a Fidelity ISA
  • Simply complete an Inherited ISA Allowance - Sell and Re-invest Form
  • Once reinvested, any investment growth will be free of income and Capital gains tax
  • We’ll sell your investments and use the proceeds to open an ISA. You can invest in the same investments as before, choose new ones or put the money into cash within the ISA and decide later.
  • There’s no charge for moving money in this way, although some fund managers will apply additional costs when buying or selling their funds.
  • Your money won’t be invested while we move it, which usually takes between five to seven days but occasionally can be a little longer. This might mean you could incur a loss or gain depending on how the market moves during this time, and a capital gain could be subject to tax.
  • You should read Doing Business with Fidelity along with the Client Terms. Depending on the investments you choose, you should also read the relevant Key Investor Information, found on the factsheet.

The value of investments can go down as well as up so you may not get back the amount invested. Please remember, the value of tax savings in an ISA depends on personal circumstances and all tax rules may change in the future.

Use inherited ISA money

  • This option is available only after probate has been granted and you must be a beneficiary
  • Simply complete a Selling an ISA Form together with an Inheritance ISA Form
  • The amount you can invest is equal to the value of ISA investments at the time of death, even if the value at probate is higher. Any money that goes over the inherited ISA allowance will be sent to the beneficiary by cheque, or can be invested in another Fidelity product by sending us the relevant application form.
  • The ISA investments will be sold and you can decide whether to keep the same investments choice as your spouse’s ISA, choose new investments or put your money into cash within the ISA and decide later.
  • If you choose to keep the same investment choices there may be some instances where an investment may not be available, such as where it is closed to new business. In such cases we will put the money into cash within the ISA and you can choose a new investment at a later date.

The value of investments can go down as well as up so you may not get back the amount invested. Please remember, the value of tax savings in an ISA depends on personal circumstances and all tax rules may change in the future.