Inheritance ISA - Terms & Conditions

Specific Terms and Conditions for the Inheritance ISA

1 - ISA Regulations

1.1 Accounts are issued subject to the detailed rules contained in ‘The Individual Savings Account Regulations 1998’, as particularly amended by the Individual Savings Account (Amendments) Regulations 2015, or as otherwise amended from time to time (‘The Regulations’).

1.2 When a Monmouthshire Building Society Cash ISA holder dies and their death is registered with the Society, their spouse or civil partner will inherit an ‘Additional Permitted Subscription’ which does not impact the spouse/civil partners normal annual ISA Allowance. The value of the additional allowance is equivalent to the value of funds the deceased spouse or civil partner held in their Monmouthshire Building Society Cash ISA when they passed away (known as the Inherited ISA allowance). The Additional Permitted Subscriptions must be deposited in the ‘Inheritance Cash ISA’. The deceased member and the surviving spouse/civil partner must have been living together at the date of death. That is, not separated under a court order, under a deed of separation, or in circumstance where the marriage or civil partnership has broken down.

1.3 The Inheritance Cash ISA is only available to the spouse or civil partner of a Monmouthshire Building Society Cash ISA account holder whose death has been registered with the Society and who passed away on or after 3rd December 2014.

1.4 The Society will not accept transfers of Additional Permitted Subscriptions from another ISA manager.

1.5 Before an Additional Permitted Subscription can be made, you, the surviving spouse/civil partner must provide the following information:

● The full name of the deceased
● The permanent residential address of the deceased at the date of death
● The date of birth and date of death of the deceased
● The deceased’s National Insurance Number (if known)
● The date the marriage or civil partnership with the deceased took place (a copy of the marriage/civil partnership certificate will be required)
● Identification and verification documents where the surviving spouse/ civil partner is new to the Society.

The surviving spouse/civil partner must also make a declaration contained in the Inheritance ISA application form confirming:
● You are the surviving spouse/civil partner of the deceased
● You were living with the deceased within the meaning of section 1011 of the Income Tax Act 2007 at the date of the deceased’s death that is, not separated under a court order, under a deed of separation or in circumstance where the marriages or civil partnership has broken down.
● The subscription is made under the provisions of regulation 5DDA of the ISA regulations
● The subscription is being made within 3 years of the date of death of the spouse/civil partner, or, if later, 180 days of the completion of the administration of the estate (known as the Permitted Period)
● You are 16 years of age or over 12

1.6 Where the death of the ISA holder occurs in the period 3 December 2014 to 5 April 2015, the 3 year period starts on 6th April 2015. The Additional Permitted Subscription limit is still the value of the deceased’s ISA, including accrued interest at the date of death.

1.7 Your ISA investment must be and must remain in your beneficial ownership, it must not be used as security for a loan. We will notify you if, by reason of any failure to satisfy the provisions of the ISA Regulations, your ISA has, or will, become void.

1.8 The rules only apply to the transfer of the ISA Allowance and not the actual physical funds (that is the cash balance including any accrued interest) held within an ISA. The existing processes in place to move money held within the deceased’s ISA into the name of a beneficiary will still be followed.

1.9 We will satisfy ourselves that any person to whom we delegate any of our functions or responsibilities under the terms agreed with you is competent to carry out those functions and responsibilities.

2 - Account Opening

You can only subscribe to one ‘Inheritance Cash ISA’ with the Society in relation to a deceased spouse or civil partner at any given time. Accounts cannot be held jointly.

Accounts may be opened with a subscription (for eligible customers over 16 who live in England and Wales).

You agree that in subscribing to this account, and when making future deposits, you will not exceed your Inherited ISA allowance.

Subject to the Regulations and your personal ISA allowance(s), you may be entitled to subscribe to another ISA in the same tax year as subscribing to this one. This is because your Inherited ISA Allowance is in addition to your personal annual ISA allowance(s). Visit HMRC for further details.

3 - Investment Limits

There is no minimum investment amount. The maximum investment must not exceed the Inherited ISA Allowance (that is the value held in the Cash ISA including accrued interest when your spouse/civil partner passed away). Any additional funds received over the Inherited ISA Allowance limit will be returned by cheque or faster payment if the payment was received electronically.

4 - Further Investment

You may add to your savings at any time within the Permitted Period either through a single Additional Permitted Subscription or a series of Additional Permitted Subscriptions. All payments into the account must be made by cheque (either by post or at a branch or agency office) or transfer from another Monmouthshire Building Society non ISA account held by the surviving spouse/partner. Electronic payments are not permitted.

You must complete the relevant declaration form each time you make an Additional Permitted Subscription which is available in branch or on the Society’s website.

We do not accept transfers of additional permitted subscriptions from other ISA managers.

The time limit for making the additional permitted subscription ends 3 years after the date of death or, if later, 180 days after the administration 13 of the estate is complete. After the time limit is passed, no further deposits are allowed but savings will still earn interest and withdrawals can still be made.

Payments into the account must not cause you to exceed your Inherited ISA allowance.

Additional Permitted Subscriptions are treated as previous ISA year’s subscriptions for all ISA purposes.

You may not transfer your own current or previous year’s subscriptions into the Inheritance ISA.

5 - Cancellation

There is a 30 day ‘cooling off’ period if you subsequently feel that the account does not meet with your requirements. Any monies received within this period will not count towards your Inherited ISA Allowance and will be returned with interest paid tax-free.

If you choose to close your Monmouthshire Building Society Inheritance ISA after the cancellation period, all deposits made into the account before closure will count towards your Inherited ISA allowance and cannot be reinvested. If however you have not used your Inheritance ISA allowance then the remaining allowance can be reinvested into a new Monmouthshire Building Society Inheritance ISA account only provided this is done within the Permitted Period.

6 - Withdrawals

All withdrawals are subject to 30 days’ notice or 30 days loss of interest on the amount withdrawn. For the account to remain open, there is no minimum balance.

Flexible ISA rules DO NOT apply to this product.

Withdrawals are subject to the limits of the branch or agency you use. Details of our current withdrawal limits are displayed in branch and agency offices and are available from our website or on request from our Head Office.

You can also make withdrawals by electronic transfer using the ‘My Accounts’ system. Online withdrawals using the ‘My Accounts’ system are subject to further terms and conditions.

These terms also apply to closure and transfers out to other ISA providers.

Upon your death, no further deposits can be made into the account.

7 - Interest

Interest is variable and calculated on a daily basis. Provided the account complies with the ‘Regulations’ all interest arising will be free of UK taxation. The taxation of ISAs can be changed at any time without notice. Interest can be credited to your account or paid annually into a bank account (or other suitable Society account) following the close of business on 31 March each year.

8 - Transfer of Additional Permitted Subscription (unused)

If you wish to transfer the Inherited ISA allowance to another provider, you will need to contact that provider who will then initiate the transfer for you. You must transfer the full Inherited ISA allowance to your chosen provider if you wish to benefit from the full Inherited ISA allowance with that provider. You can only do this if you have not deposited any funds into the Society’s Inheritance Cash ISA. If you have 14 deposited funds into the Society’s Inheritance Cash ISA, you can only transfer (to a new provider) the amount of the allowance which has been used (see below).

9 - ISA Transfers Out (after a permitted payment has been made)

9.1 If you wish to transfer the funds invested in this Inheritance Cash ISA to another provider, you will need to contact that provider to initiate the transfer for you.

9.2 You may transfer your Inheritance Cash ISA in whole or in part to another type of ISA held with another ISA manager.

9.3 If you transfer all or part of your Inheritance Cash ISA to another ISA provider after depositing funds into your Monmouthshire Building Society Inheritance ISA account before fully using your entire Additional Permitted Subscription within the permitted period, you will only be able to make future deposits in relation to the unused Additional Permitted Subscription to an Inheritance ISA Account held with the Society and not an Inheritance ISA account held with the ISA provider you have transferred to. If you have closed your Monmouthshire Building Society Inheritance ISA as a result of the transfer out to another ISA provider, you will be required to open a new Monmouthshire Building Society Inheritance ISA to take advantage of any unused Additional Permitted Subscription. These Terms and Conditions will continue to apply to any such future deposits and count towards your Additional Permitted Subscription.

9.4 We will make any transfers to another ISA manager within 15 business days of receipt of your request, unless you indicate otherwise.


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