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Inherited ISA Allowance Plan

Invest your tax-free inherited ISA allowance in our flexible Stocks & Shares ISA, with the potential for growth

Inherited ISA Allowance Plan

Frequently Asked Questions

Want to know more about investing for the long-term in our Inherited ISA Allowance Plan? Take a look at the most commonly asked questions in our FAQs below. Simply click 'Show info' to display the answer. If you have any questions that are not answered here, please contact us.

About the Inherited ISA Allowance Plan

What is the Inherited ISA Allowance Plan?

If your Spouse or Civil Partner died on or after 3rd December 2014 you’re entitled to inherit an additional tax free NISA (New ISA) allowance. The allowance is up to the value of your Spouse or Civil Partner’s NISAs on the date they passed away.

The Foresters Friendly Society Inherited ISA Allowance Plan is a Stocks & Shares NISA that we have set up specifically to accept contributions as part of a NISA allowance which has been inherited by a surviving Spouse or Civil Partner.

Finding the right plan for you

Who can apply for an Inherited ISA Allowance Plan?

You may only apply for an Inherited ISA Allowance Plan in the event of the death of your Spouse or Civil Partner, if:

    1. you were living with the deceased at the date of death and were not separated under a court order, deed of separation or in circumstances where the separation was likely to be permanent.
    2. the deceased held a NISA at their date of death
    3. the date of death was on or after 3rd December 2014.

Unlike normal NISAs you do not have to be resident in the UK for tax purposes to be eligible for the inherited NISA allowance. However, you must hold a UK bank account to be able to make contributions into the plan.

You do not need to inherit the money from your Spouse or Civil Partner’s NISA to be eligible. You can use your own money to open the account and you don’t have to wait for the NISA to be closed or repaid.

Does the inherited NISA allowance affect my current NISA allowance?

No, this is a one off additional allowance and does not affect your normal individual NISA allowance.

Who is the Foresters Friendly Society Inherited ISA Allowance Plan suitable for?

Providing you are aged between 18 and 80 the Foresters Friendly Society Inherited ISA Allowance Plan may be suitable for you. If you already hold a Foresters NISA no maximum age limit will apply. Unlike normal NISAs you do not have to be resident in the UK for tax purposes to be eligible for the Inherited ISA Allowance Plan. However, you must hold a UK bank account to be able to make contributions into the plan.

You may only apply for an Inherited ISA Allowance Plan in the event of the death of your Spouse or Civil Partner, if:

    1. the surviving Spouse or Civil Partner was living with the deceased at the date of death and was not separated under a court order, deed of separation or in circumstances where the separation was likely to be permanent.
    2. the deceased held a NISA at their date of death.
    3. the date of death was on or after 3rd December 2014. You do not need to inherit the money from your Spouse or Civil

Partner’s NISA to be eligible. You can use your own money to open the account and you don’t have to wait for the NISA to be closed or repaid.

Can I change my NISA provider?

You can transfer your plan to another provider at any time just like a normal NISA, as long as the new NISA provider allows it.

However, if you transfer before you have used all your inherited allowance you will not be able to make further contributions to the new provider. You will, however, be able to make further contributions to the Foresters Friendly Society plan which can then subsequently be transferred to the new provider.

Will you accept transfers from another provider?

Yes, Foresters will accept transfers from other providers as long as they meet the plan conditions. As above Foresters Friendly Society will only be able to accept the transfer amount and no additional contributions can be added unless transferred from the previous provider.

I'm not sure if an Inherited ISA Allowance Plan is right for me. What should I do?

If you're unsure as to the suitability of this product you should seek advice from a Financial Adviser. You may have to pay for this advice.

Payments into the plan

What is the minimum payment?

You can choose to contribute regular amounts from just £50 per month by Direct Debit, invest lump sums or, if you prefer, you can use a combination of both. If you wish to invest lump sums, a minimum £500 lump sum contribution is required to open an Inherited ISA Allowance Plan, then top ups of at least £250 can be made.

What is the maximum payment?

The maximum amount that can be invested (your inherited allowance) is the value of the Spouse’s or Civil Partner’s NISA at the time of their death.

How long can I contribute into the plan?

Contributions need to be made within three years of the date your Spouse or Civil Partner dies, or within 180 days of the date the estate is settled whichever is later.

If your Spouse or Civil Partner died between 3rd December 2014 and 5th April 2015, the three year period starts on 6th April 2015. 

What happens if I cash-in my NISA?

You can cash-in your Inherited ISA Allowance Plan whenever you want, but you may get back less than you have paid in. The cash-in value of your Inherited ISA Allowance Plan will depend upon the amounts you have invested, the amounts you have withdrawn and any annual bonuses that have been added.

Depending on the investment returns that have been achieved and our costs, in favourable investment conditions we may also add a final bonus to the plan value. Conversely, in adverse investment conditions we may apply a Market Value Reduction to reduce the plan value.

If you close or transfer your Inherited ISA Allowance Plan before you fully use your inherited ISA allowance, you may only use the remaining allowance with Foresters Friendly Society.

What happens if I die?

The death benefit provided by your Inherited ISA Allowance Plan will be paid to your estate. The amount payable on death is 101% of the contributions you have paid in plus any attaching bonuses and any final bonus less any withdrawals. The amount payable may be subject to Inheritance Tax depending on the size of your estate. 

About Foresters Friendly Society

Who is Foresters Friendly Society?

Foresters Friendly are a mutual society, founded in 1834 by ordinary people with a common purpose - to support each other through financial and other difficulties.

We've been looking after our members, and their finances, for over 180 years, offering care and protection through relevant affordable financial products.

Since 1834 our aim has been to be open, approachable, honest and fair, treating all our members as individuals.

We always put the interests of our members first.

Find out more about friendly societies and Foresters Friendly Society here.

How safe is my money?

You'll be pleased to hear that our funds have grown steadily over the years and our financial position remains strong. (Source: Reports & Accounts 2015).

However, note that past performance is not a guide to the future.

However, if in the unlikely event that Foresters Friendly Society were to be declared insolvent, you would be able to make a claim under the Financial Services Compensation Scheme.

About Friendly Societies

What is a Friendly Society?

Friendly Societies have been around for hundreds of years. They were founded on the idea of mutuality - that if a group of people contributed to a mutual fund, an individual within the group could benefit in a time of need. The principles still apply - friendly societies are owned by, and operate in the interests of, their members. Unlike public limited companies, they use revenues to the benefit of their members rather than distributing profits to their shareholders.

How do Mutuals perform, compared to PLCs?

With no shareholders to answer to, mutual societies can ensure their profits are only used for their members’ benefits by sharing this amongst members, or re-investing to provide potentially better returns, better value or higher levels of service.

Over the last 10 years, the average mutual with-profits policy produced 29% more than an equivalent from a PLC insurer – that’s around £11,400 more after 25 years for a £50 per month policy.

(Source: Association of Financial Mutuals:  AFM Key facts about mutual insurers and friendly societies November 2014)

What is a Mutual?

UK financial organisations are either authorised by the Financial Conduct Authority (FCA) or the Prudential Regulation Authority (PRA) and can be regulated by one or both regulators, and are either mutuals or public limited companies (PLCs). Unlike a PLC, a mutual organisation has no external shareholders to pay in the form of dividends and does not seek to make large profits or capital growth.

Mutual organisations are owned and run for the benefit of their members and their profits are usually re-invested for the benefit of members, although some may be used for internal finance to ensure the mutual is sustainable, safe and secure.

Today, UK mutuals account for over £116 billion in revenue every year and 1 in 3 people in the UK are a member of at least one mutual. (Source: The Mid-Term Mutuals Manifesto 2013 and the Mutual 2013 Yearbook)

Membership and Extras

I read somewhere about benefits - but I imagine I pay for those somewhere?

When you take out one of our policies or plans, you automatically become a member of Foresters. As a mutual, we don't have to answer to external shareholders. Instead, we use all our profits to benefit our members. All Foresters customers can take advantage of Foresters Extras, a range of benefits we offer at no additional cost.

Do I get any additional benefits as a Foresters customer?

All our customers benefit from Foresters Extras, a range of benefits we offer at no additional cost.

Help and support

Where can I get help?

For help and support, please contact Foresters Friendly Society.

Inherited ISA Allowance Plan - Foresters Extras >>