APS S&S ISA cancellation rights into an existing plan

Amy

Hi all

Are there any nuances I should be aware of here please? Or will the cancellation rights be deemed by the receiving provider? They have nothing stated about APS ISA in their KFD or T&C and we'll be transferring to an existing plan, inspecie.

benjaminfabi

Hi Amy,

I'm not entirely sure what the query is... I think you're asking if a client will get cancellation rights on the transfer of assets into an existing ISA to use the APS?

The APS is separate to the assets in the ISA. A client with an ISA can use any capital available to them to fund the APS. Cancellation rights on new money ISAs and ISA transfers are the same, but what you're doing isn't technically either of those things.

I suspect you won't have cancellation rights for this transaction. Even if you did, there are time limits on in-specie transfers of ISA assets from a deceased owner to their spouse and any cancellation would risk these. You can also only do an in-specie APS to the same ISA manager as the deceased e.g. you can't transfer in-specie from a Transact ISA to a Quilter ISA.

Assuming you're looking to put the client into an informed position ahead of the action, I'd suggest something like this:

You should approach this advice on the basis that you will have no right to cancel the transfer of assets from [deceased's name] ISA to yours. However, once the transfer process is completed, the funds will be in the same account as your ISA funds and can be managed as if they had always been one account.