What happens to an ISA after someone dies?
When someone passes away holding a Cash ISA or Stocks & Shares ISA with Monzo, the account doesn't lose its tax benefits straight away. Under HMRC rules, it becomes a Continuing ISA.
You have the choice to keep it open or close it
As the executor or estate representative, you are in control of what happens to the account. You can choose to:
Keep the ISA open: Leave it running so the money or investments continue to earn tax-free interest or growth while you sort out the estate.
Close the ISA now: Ask us to close the account straight away and release the funds as part of our standard bereavement process.
Just let us know your decision, and our team will carry out your instructions.
How a Continuing ISA works if you keep it open
Stays tax-free: No Income Tax or Capital Gains Tax is due on any returns earned after the date of death.
No new payments: No extra money or contributions can be added to the account.
Time limit: The ISA can stay open for up to 3 years and 1 day from the date of death, or until the estate administration is finished (whichever happens first).
We’re here to help
Whether you want to keep the ISA open for now or close it right away, our specialist team is here to help. Email us your instructions directly at: bereavements@monzo.com
Was this article helpful?
Related articles
- How we can help you if someone with a Monzo account dies
- Balance transfer when a Monzo account Holder dies
- Closing the Under 16s Account when they have passed away
- How to tell us someone with a Monzo Account has died if you’re under 16
- What happens to General Investment Accounts (GIAs), and Stocks & Shares ISAs when someone dies?
- What happens to a Pension when someone dies?
- What is an Additional Permitted Subscription (APS) and am I eligible?
