What happens if I die?
Any ISA plans you hold will end on the date of your death.
No tax will due on any income or capital gains that have
been achieved up to that date. However, if the plan continues
after your death, then your personal representatives will
be liable for taxation on any subsequent income or capital
gains.
The value of any ISA plans will be added to you're the
rest of your assets when calculating the value of your estate
for Inheritance Tax purposes.
Under the terms of a life insurance ISA the proceeds of
the policy will be payable at the time of your death. Although
there would not tax to pay on the policy proceeds built
up during you life, however if any interest is added by
the life insurance company because of late payment of the
claim, then this interest would be subject to taxation.
