What happens if I die?

If you sadly pass away and you have savings with Beach, your money will still exist, and remain yours for your family or as per your wishes if you have a will.

Your executor of your estate (which is all your things, like your home and money, including debts), will typically manage things (which is often a family member or solicitor).

Note: this is a short overview, and is not advice. The rules can change over time, and the overall process can be different and more complicated depending on the circumstances. And unless left to a spouse (your partner in a marriage or civil partnership), most typical estates can count towards inheritance tax (a tax on your money when you pass away).

Easy access pot

Your easy access pot, which is your ISA and standard account, will become part of your estate.

ISA

Your ISA will become a ‘continuing ISA’ where the investments will remain as they are, and your ISA still has its tax-free benefits, but no new money can be added to the pot.

When ready, your executor will get in contact with us and close the ISA. The money will be used in accordance with your wishes if you have a will, or pass to the most relevant person legally if there’s no will.

If you have a spouse, they can usually inherit your ISA and add the money within your ISA to their own ISA and keep the tax-free status of your money.

Standard account

It’s a similar process for your standard account too, and will be managed by your executor.

The standard account will be valued on the date you pass away, and this forms part of any tax calculations.

There’s not usually any capital gains tax to pay on any increase in the value of your investments up to the date you pass away, but there might be income tax and dividend tax to pay if any investments provide income (such as interest) or dividends (a share of company profits).

Your estate may pay tax on money made after you pass away and before investments are sold.

Pension pot

Pensions are a bit different, and technically don’t count towards your estate, they are separate. 

You can express a wish for who you’d like to receive your pension pot by setting up to four beneficiaries within your Beach account. We aim to provide your beneficiaries with your pension unless any legal issues arise (such as someone else has a legal claim).

Generally, if you pass away under the age of 75, whoever receives your pension will receive it tax-free. 

After 75, the money is normally taxed the same as income (like a salary is taxed). The pension pot can remain (in their name) and they can decide how much and when to withdraw money, it doesn’t need to be withdrawn all in one go immediately.

These rules are separate to inheritance tax, which may also apply to pensions in future.