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What happens to your
investments when you die

Planning ahead

When you make choices about how to invest and manage your money, it’s often not just yourself you think about.

The decisions you make and how old you are when you die, can affect what happens to your investments and the choices available to the people who inherit them.

Planning ahead can give you peace of mind that your loved ones will receive what you want them to, and be protected from inheritance tax.

Your HL investments

Depending on the account your investments are held in, your loved ones will have different options. You can find full details in our Beneficiary Guide: Inheriting Money.

Stock and Shares and Lifetime ISAs

Any beneficiary can choose to have the assets they inherit transferred into a Fund and Share Account in their own name, or have the value paid out to them as cash.

Your spouse or civil partner can also choose to transfer the assets into a new or existing HL Stocks and Shares ISA in their own name, using the Additional Permitted Subscription allowance.

SIPP (Self-Invested Personal Pension) including drawdown

Any beneficiary can choose to have the assets they inherit paid out to them as a lump sum. Most beneficiaries will also have the option to transfer the assets into a self-invested drawdown pension in their own name, or exchange the value for a secure income (an annuity).

How withdrawals will be taxed depends on how old you are when you die.

Find out more

Active Savings

Any beneficiary can choose to keep the assets they inherit in Active Savings, have the value transferred into a Fund and Share Account in their own name, or have it paid out to them as cash. If the money is in a fixed term contract(s) they can either wait until the term(s) is over or access the money early. They would need to check whether there are any penalties to access the money early.

Fund and Share Account

Any beneficiary can choose to have the assets they inherit transferred into a Fund and Share Account in their own name, or have the value paid out to them as cash.

Why you should make a Will

A Will is a legally binding document that lets you explain what you want to happen to your assets after you die. You can also nominate someone to be in charge of carrying out your wishes (known as an executor).

If you don’t make a Will, intestacy rules will dictate what happens to your assets, including your HL investments. This can make things difficult for your loved ones, and might mean they don’t receive what you hoped they would.

You may wish to use a solicitor to set up your Will, especially if your estate is large or your circumstances are complicated.

Value of power of attorney

A power of attorney (POA) is a document which legally allows someone you trust to make decisions for you, or act on your behalf.

A lasting POA (LPA) can cover decisions about your property and financial affairs and/or your health and welfare. It comes into effect if you lose mental capacity, or, in the case of a property and financial affairs LPA, you no longer want to make decisions for yourself.

If you’re married or in a civil partnership and you lose the physical or mental capability to make decisions, you may have assumed that your spouse would automatically be able to deal with your investments and pensions, and make decisions about your healthcare. But without a POA they’ll have to apply to the Court of Protection for authority.

To find out more visit Gov.UK

Losing a loved one

Find out what to do when someone dies, including how to let us know and what you’re choices are if you’re a beneficiary.

Find out more