What happens to my Lifetime ISA if I die?
Answer
If you die, the money and investments in your Lifetime ISA account will be passed on to your beneficiaries. After your death, your Lifetime ISA will retain its tax benefits until one of the following occurs:
- The administration of your estate is completed
- The Lifetime ISA is closed by your beneficiary
If neither of these two things happens within three years from your date of death, the Lifetime ISA will be closed. The government withdrawal charge of 25% doesn't apply after death. This means your beneficiaries would inherit its full value, subject to inheritance tax.
Please remember that tax rules may change in the future and can vary depending on your personal circumstances.