Investment Accounts in Your Will: ISAs, Pensions & Stocks

James had built a £185,000 investment portfolio carefully over 15 years—£42,000 in his Stocks & Shares ISA, £98,000 in his SIPP pension, and £45,000 in a trading account holding individual shares. When he died unexpectedly at 43, his wife Sarah assumed his comprehensive will would direct everything to her and their two children.

She was wrong.

His pension went entirely to his elderly mother—named on a decade-old expression of wish form he'd forgotten about. His ISA lost its tax-free status the moment administration completed, generating confusion about values. And because Sarah didn't know about Additional Permitted Subscription (APS) rights, she nearly missed the deadline to preserve £42,000 of tax-free ISA allowance.

According to Shepherds Friendly's 2024 UK Investment Report, 54% of UK adults now hold investments—approximately 29 million people. Yet most have no idea that different investment accounts follow completely different inheritance rules. With major changes coming in April 2027 that will subject pensions to inheritance tax for the first time, understanding how your investment accounts interact with your will has never been more critical.

This guide explains exactly how ISAs, pensions, stocks, and other investment accounts pass to beneficiaries, what your will does and doesn't control, and the simple steps to ensure your investment portfolio goes exactly where you intend.

Why Investment Accounts Need Special Attention in Estate Planning

Your investment portfolio isn't like a bank savings account. Different investment vehicles have fundamentally different legal structures that determine how they pass to beneficiaries when you die.

The critical distinction is this: some assets pass via your will (probate assets), while others pass via beneficiary designations that completely override your will (non-probate assets). Most investors don't understand which category their accounts fall into.

According to Finder's 2024 research, 23% of UK adults—approximately 12.5 million people—actively invest in the stock market. That's up from 18% in 2023, representing a significant increase in the number of people holding investment portfolios. Yet few of these investors have coordinated their will with their investment account beneficiary forms.

Here's what happens if you don't plan properly: your ISA might go to one person, your pension to another, and your stocks to a third person—regardless of what your will says. Tax-efficient allowances get wasted. Your family faces unexpected inheritance tax bills. And the distribution you carefully planned in your will gets completely undermined by outdated nomination forms you filled out years ago.

The stakes are high. With the government's announcement that pensions will be subject to inheritance tax from 6 April 2027, an estimated 10,500 estates will face inheritance tax bills for the first time. Understanding how to coordinate your investment accounts with your will could save your family thousands.

How ISAs Pass to Beneficiaries (And the Additional Permitted Subscription Rule)

Let's start with good news: ISAs do pass via your will. They're part of your estate, which means whatever your will says about your residuary estate (or specific ISA gifts) controls where your ISA goes.

But here's what most people don't know.

When you die, your ISA doesn't just pass to beneficiaries immediately. It becomes what's called a "continuing ISA" or "continuing account of a deceased investor." According to GOV.UK guidance, this continuing ISA can last for up to three years and one day from the date of your death, or until the administration of your estate is complete, whichever comes first.

During this period, the funds continue to grow tax-free—no income tax, no capital gains tax. But no new contributions can be made. The account eventually closes and the proceeds are distributed according to your will.

For inheritance tax purposes, your ISA is included in your estate. If your total estate exceeds the £325,000 nil-rate band (or £500,000 if you're leaving your home to direct descendants and qualify for the residence nil-rate band), your ISA will be subject to 40% inheritance tax on the excess amount.

However, if you leave your ISA to your spouse or civil partner, no inheritance tax is due thanks to the spousal exemption.

The Additional Permitted Subscription (APS) Most Spouses Never Claim

Here's the powerful benefit most surviving spouses don't know exists: Additional Permitted Subscription (APS).

If your spouse or civil partner dies and held an ISA, you automatically qualify for an extra ISA allowance equal to the value of their ISA. This is separate from and in addition to your normal £20,000 annual ISA allowance.

Emma discovered this when her husband died with a £42,000 ISA. Not only did she inherit that money (as specified in his will), but she also gained a one-off additional ISA allowance of £42,000. In the same tax year, she could invest up to £62,000 into ISAs—her normal £20,000 allowance plus the £42,000 APS allowance.

According to GOV.UK's APS guidance, to qualify for APS you must:

Have been married or in a civil partnership with the deceased
Have been living together (not legally separated) at the date of death
Had your spouse die on or after 3 December 2014

The APS value is calculated as the higher of:

The value of the ISA at the date of death, or
The value when the ISA closes (if death occurred on or after 6 April 2018)

You have three years from the date of death to claim this allowance, or 180 days after the administration of the estate completes, whichever is later. But here's the catch: you must actively claim it. Your ISA provider won't automatically apply it.

Sarah nearly lost this benefit entirely because James's investment platform sent a single letter about APS that she mistakenly thought was marketing material. She only discovered it when clearing out paperwork two years later, with just four months left on the deadline.

Pension Death Benefits: Expression of Wish vs. Your Will

Now we get to the part that catches most people off guard: pensions typically do not pass via your will.

Let me be absolutely clear about this, because it's critical: your will does not control where your pension goes. Pension death benefits are controlled by the scheme trustees, who have legal discretion over who receives them.

This discretion exists because pensions are held in trust. The pension scheme's assets are legally owned by its trustees, not by you as the individual member. This structure is what has historically kept pensions outside your estate for inheritance tax purposes.

So how do trustees decide who gets your pension?

They follow your "expression of wish" form (also called a "nomination" form). According to guidance from Brodies LLP, while these forms are not legally binding, trustees almost always follow them unless there are compelling reasons not to.

The problem is that many people either never complete these forms, or they completed them decades ago and forgot to update them.

James's situation is distressingly common. He filled out his expression of wish form at age 25 when he started his first job, naming his mother as beneficiary. He got married, had children, changed jobs twice, transferred his pension to a SIPP—but never updated that original form. When he died, the trustees followed his 18-year-old wishes and paid the entire £98,000 to his mother, not his wife and children.

Current Tax Treatment (Until April 2027)

Under current rules, pension death benefits are treated as follows:

If you die before age 75, your beneficiaries receive the pension tax-free, as long as it's paid within two years of your death. If you die after age 75, beneficiaries pay income tax on withdrawals at their marginal rate.

Critically, pensions are currently not subject to inheritance tax.

The Major 2027 Change Every Investor Must Know

From 6 April 2027, everything changes.

The government announced in the October 2024 Budget that unused pension funds and death benefits will be brought within the inheritance tax regime. According to official estimates, this change will affect approximately 10,500 estates that will pay inheritance tax for the first time, and 38,500 estates will pay more IHT than previously.

The average inheritance tax liability is expected to increase by around £34,000 when pension assets are included.

Here's how it will work:

Personal representatives (your executors), not pension scheme administrators, will be responsible for reporting and paying any inheritance tax due on pension death benefits. The spousal exemption will still apply—if you leave your pension to your spouse or civil partner, no IHT is due. But if you leave it to children, siblings, or other beneficiaries, it will be subject to the 40% rate on amounts above the nil-rate band.

Death-in-service benefits and dependants' scheme pensions from defined benefit arrangements are excluded from these changes.

This makes reviewing your expression of wish form urgent. You need to ensure it aligns with your will intentions and takes into account the tax implications starting in 2027.

Stocks, Shares, and Brokerage Accounts in Your Will

Individual stocks, shares, and the contents of brokerage accounts typically pass via your will—with one important exception.

If you hold stocks or shares directly in your name (not within an ISA or pension wrapper), they are part of your estate and pass according to your will. The same applies to most UK brokerage accounts.

Unlike the United States, the UK doesn't have "Transfer on Death" (TOD) designations that allow you to name beneficiaries directly on investment accounts. A few UK platforms offer beneficiary nomination features, but they're far less common. In most cases, your general investment account passes via your will.

You should specify these holdings in your will either specifically ("my holding of ordinary shares in Unilever PLC") or generally ("all stocks and shares held in my Hargreaves Lansdown account"). You don't need to list account numbers—those change. Use provider names and general descriptions.

David held £45,000 worth of individual shares across three platforms: Hargreaves Lansdown, AJ Bell, and Interactive Investor. His will included a clause stating "all my stocks, shares, and investment accounts" would pass to his wife. This residuary clause was sufficient—his executors logged into each platform, identified the holdings, and transferred them according to the will.

One important benefit for your beneficiaries: they receive what's called a "step-up" in cost basis. This means their cost basis for capital gains tax purposes is the value on the date of your death, not your original purchase price. If they later sell the shares, they only pay capital gains tax on growth after they inherited them, not on the growth during your lifetime.

Physical share certificates require special attention. If you hold paper certificates, they should be kept safe with your will documents, and your executors need to know they exist. Include a note in your Estate Information document listing any companies where you hold physical certificates.

Investment Bonds, Unit Trusts, and OEICs

Other investment vehicles have their own inheritance quirks you need to understand.

Investment bonds can be structured in two ways. If the bond is written "in trust," it passes outside your will to the trust beneficiaries. If it's held in your own name, it passes via your will. Many investors don't actually know which structure applies to their bonds—contact your provider to verify.

Unit trusts and Open-Ended Investment Companies (OEICs) follow the same pattern as stocks: if held in a general investment account, they pass via your will. If held within an ISA wrapper, they follow ISA inheritance rules.

Offshore bonds have the same inheritance rules as UK bonds, but may have different tax treatment that affects how much your beneficiaries receive.

Some investment products have life insurance elements built in. These insurance-based investments may pay out to named beneficiaries directly, bypassing your will entirely. Again, check your policy documents.

The solution to all this complexity is simple but essential: create an investment inventory.

List every investment you hold—the provider, account type, approximate value, and any beneficiary designations if applicable. Keep this document with your will. When you die, your executors will need to track down these accounts, and every platform you don't document becomes a potential lost asset.

Inheritance Tax on Investment Portfolios: The 2024-2027 Changes

Understanding how inheritance tax applies to your investment portfolio is crucial, especially with significant changes taking effect between now and 2027.

Current IHT Thresholds (2024-2025)

According to GOV.UK guidance on inheritance tax, the current thresholds are:

Nil-rate band: £325,000 per person
Residence nil-rate band: £175,000 (if you leave your home to children or grandchildren)
Total potential: £500,000 per person, or £1 million for married couples who pass assets to each other first
IHT rate: 40% on amounts above the threshold

These thresholds are frozen until at least the 2029-2030 tax year, which means more estates will be caught by IHT as asset values increase with inflation.

Which Investments Are Included in Your Estate?

Currently, for IHT purposes:

ISAs: YES—fully included in your estate
Stocks and shares in your name: YES—fully included
Investment bonds in your name: YES—fully included
Unit trusts and OEICs: YES—fully included
Pensions: NO—currently exempt (until April 2027)

The Critical 2026-2027 Changes

Two major changes are about to hit investment portfolios.

From 6 April 2026: Business Property Relief on AIM shares changes dramatically. According to Royal London's technical guidance, AIM shares previously qualified for 100% inheritance tax relief. From April 2026, they will only receive 50% relief.

This means an AIM portfolio worth £1 million, which currently passes IHT-free, will face an inheritance tax bill of up to £200,000. Additionally, the new £1 million allowance for combined Agricultural Property Relief and Business Property Relief does not apply to AIM shares at all—they get straight 50% relief regardless of value.

From 6 April 2027: Pensions become subject to inheritance tax. As discussed earlier, this affects an estimated 10,500 estates for the first time and increases IHT bills for 38,500 more.

Let's look at an example.

Michael has an estate worth £850,000: £200,000 in his pension, £150,000 in ISAs, £300,000 in his home, and £200,000 in other assets. He's single with adult children.

Before April 2027:

Estate for IHT purposes: £650,000 (pension excluded)
Nil-rate band: £325,000
Residence nil-rate band: £175,000 (leaving home to children)
Total allowance: £500,000
Taxable amount: £150,000
IHT due: £60,000 (40% of £150,000)

After April 2027:

Estate for IHT purposes: £850,000 (pension included)
Total allowance: £500,000
Taxable amount: £350,000
IHT due: £140,000 (40% of £350,000)

The 2027 change costs his estate an extra £80,000 in inheritance tax.

For married couples, the situation is better but still requires planning. If you leave everything to your spouse or civil partner, the spousal exemption means no IHT is due on the first death. Your spouse also inherits your unused nil-rate bands, potentially giving them £1 million in total allowances to use on the second death.

Coordinating Your Will with Investment Account Beneficiaries

Now we get to the practical action you need to take this week.

The fundamental problem is simple: if your will says one thing and your pension nomination says another, the nomination wins. Your carefully drafted will becomes irrelevant for any investment account with its own beneficiary designation.

Here's your step-by-step coordination checklist:

Pull out your will (or create one). You can't coordinate documents you don't have. If you don't have a will yet, creating one with WUHLD takes 15 minutes and costs £49.99.
Log into each investment platform. Access your Hargreaves Lansdown, AJ Bell, Fidelity, Vanguard, Interactive Investor—every platform where you hold investments. Look for "beneficiary," "nomination," or "death benefits" settings.
Contact all pension providers. Email or call each pension scheme (workplace pensions, SIPPs, old pensions you've forgotten about) and request a copy of your current expression of wish form on file. You might be surprised what you find.
Create a coordination spreadsheet. Make columns for: Account Name | Provider | Approximate Value | Current Beneficiary | Intended Beneficiary | Match?
Update mismatched nominations. If your will leaves everything to your spouse but your pension nomination still names your ex-partner from 2008, fix it today. Most providers let you update expressions of wish online.
Confirm your will covers all accounts. For ISAs and general investment accounts without beneficiary designations, verify your will's residuary clause is broad enough to capture them. A clause like "the rest of my estate to my spouse" will cover all your ISAs and investment accounts.
Tell your spouse about APS rights. If you're married or in a civil partnership, make sure your spouse knows about Additional Permitted Subscription allowances. Give them this article. The allowance is worthless if they don't know to claim it.
Review annually. Set a calendar reminder for the same date each year. Also review whenever you get married, divorced, have a child, or open a new investment account.

Sarah and David learned this lesson the expensive way. After sorting out James's estate, Sarah spent a weekend going through her own investment accounts. She discovered her workplace pension still named her university boyfriend from 15 years ago. One form update prevented her children from losing £75,000 to someone she hadn't seen since graduation.

Special Considerations for Unmarried Couples and Blended Families

If you're in a non-traditional family structure, the coordination challenges are even more acute.

Unmarried Couples Face Higher Risks

Cohabiting couples have zero automatic inheritance rights under UK law. If you die without a will, your long-term partner gets nothing under intestacy rules—everything goes to your blood relatives.

But even if you have a will leaving everything to your partner, you face tax disadvantages that married couples don't.

First, there's no spousal exemption. If you leave your £400,000 estate to your unmarried partner, and it includes £180,000 in investments, your partner will face an inheritance tax bill of £30,000 (40% of the £75,000 above the £325,000 nil-rate band). A married couple would pay zero.

Second, unmarried partners don't qualify for Additional Permitted Subscription allowances on ISAs. Only married couples and civil partners get this benefit.

Third, if you haven't updated your pension expression of wish forms, trustees may default to paying "dependants"—which legally might include your partner, but also might not, depending on your financial arrangements. Don't leave this to chance.

If you're unmarried, three actions are non-negotiable:

Create a will immediately (learn more about unmarried couples and wills)
Update every pension expression of wish form to explicitly name your partner
Consider whether getting married or entering a civil partnership would save your estate tens of thousands in inheritance tax

Blended Families Need Extra Care

If you're in a second marriage with children from a first marriage, balancing everyone's interests requires thoughtful planning.

The risk: you leave everything to your new spouse (triggering the spousal exemption, no IHT). Your spouse then leaves everything to their children from their first marriage, and your children get nothing. This happens more often than people think.

Investment accounts give you tools to create a more balanced solution.

Consider this strategy: split your pension expression of wish form (many schemes allow percentages—50% to spouse, 50% divided among children). Leave your ISA directly to your children in your will. Leave other assets to your spouse.

Or use a life interest trust: your spouse receives income from your investments during their lifetime, but the capital passes to your children when your spouse dies. This requires specialist legal advice but can solve the blended family dilemma.

The key is communication. Talk to your spouse and your adult children about your intentions. Surprises after death create disputes that destroy families. If your children know why you're structuring things a certain way, and your spouse understands their security is protected, you can prevent years of resentment.

What Your Investment Platform Won't Tell You (But Should)

Here's an uncomfortable truth: your investment platform is not looking out for your estate planning.

Investment platforms provide accounts and facilitate trades. They're not required to give you estate planning advice, and most actively avoid doing so to limit liability.

This creates dangerous gaps.

When Hargreaves Lansdown prompts you to "update your beneficiaries," they don't explain how that interacts with your will. When you open a Vanguard account, there's no warning that your pension held there passes outside your will entirely. When your AJ Bell ISA reaches £50,000, nobody alerts you that it's now subject to inheritance tax if your total estate exceeds the threshold.

Platforms will tell you the mechanics: "You can nominate beneficiaries here," or "Your ISA value will be paid to your estate." What they won't tell you is the strategy: should you nominate someone on your SIPP or let it go through your will? How does your ISA distribution affect your overall estate plan? What happens if your beneficiary nomination conflicts with your will?

This isn't malicious. It's regulatory boundaries and liability concerns. Platforms aren't authorised to give legal or tax advice, so they stay silent.

The result? You're on your own to connect the dots.

Fidelity might have a helpful article about expression of wish forms. Interactive Investor might explain continuing ISAs. But none of them will look at your complete situation—your will, your family structure, your tax exposure, your three pensions and two ISAs across different providers—and tell you how to coordinate everything.

That's your responsibility.

The good news is that you don't need expensive professional advice if your situation is straightforward. You need a solid legal foundation (a comprehensive will) and then a few hours to coordinate your investment accounts with that foundation.

How to Include Your Investment Portfolio in Your WUHLD Will

Let me show you exactly how to create a will that properly addresses your investment accounts, then coordinate everything in under two hours.

What WUHLD's Will Covers

When you create a will with WUHLD, your residuary estate clause automatically covers all ISAs, stocks, shares, bonds, and investment accounts held in your name. You don't need to list every investment individually unless you want to make specific gifts.

For most investors, the general approach works best. Your will includes clauses like:

"I give all my property and assets to [beneficiaries] in [shares]"
This automatically includes your Stocks & Shares ISA, your trading accounts, your investment bonds, your unit trusts—everything in your name

If you want to leave a specific investment account to a specific person, you can do that too: "I give my Stocks & Shares ISA held with Hargreaves Lansdown to my daughter Emma."

The key is that you don't list account numbers (these change) or exact values (these fluctuate). Use provider names and general descriptions.

What Your Will Doesn't Control

Remember: pensions pass outside your will in most cases. WUHLD's will provides the legal foundation for everything that does pass via your will, but you'll still need to handle pension nominations separately.

After you complete your WUHLD will, your next task is contacting each pension provider to update your expression of wish form.

Your Complete Workflow

Here's the realistic timeline:

Week 1: Create your WUHLD will (15 minutes)

Go to WUHLD's will creation platform, answer questions about your executors, guardians (if you have minor children), beneficiaries, and how you want your estate distributed. For £49.99, you get:

Your complete, legally binding will
A 12-page Testator Guide explaining how to execute your will properly
A Witness Guide to give to your witnesses
A Complete Asset Inventory document

Preview your entire will free before paying anything—no credit card required.

Week 2: Coordinate your investment accounts (1-2 hours)

Use the Estate Information Guide included with your WUHLD will to create your investment inventory. Log into each investment platform, check beneficiary settings, and ensure they align with your will intentions.

Contact pension providers to request current expression of wish forms. Many providers let you update these online; others require a form to be posted.

Week 3: Tell your spouse about their rights

If you're married or in a civil partnership, sit down with your spouse and explain Additional Permitted Subscription allowances. Show them where you've documented your ISA providers. Give them a copy of this article.

Ongoing: Review annually

Set a calendar reminder for one date each year (your birthday works well). Pull out your will, your investment inventory, and your pension statements. Verify everything still matches your intentions. Update as needed.

Why WUHLD Works for Investors

You might be wondering: "I have a complex investment portfolio—shouldn't I see a solicitor?"

Here's the truth: WUHLD is excellent for investors with straightforward estates. If you have clear beneficiaries, you're UK-resident, your estate is under £2 million, and you don't need complex trust structures, WUHLD gives you everything you need for £49.99 instead of £650+ for a solicitor.

The comprehensive residuary estate clause catches all your investment accounts automatically. The Estate Information Guide helps you organise your portfolio so executors can find everything. The preview feature lets you see exactly what your will says about your investments before you pay.

WUHLD is suitable for most investors. If you have offshore trusts, complex business partnerships, or estates likely to exceed £2 million, you should consult a specialist estate planning solicitor. But if you're a mid-career professional with ISAs, pensions, and a stock portfolio, WUHLD is built for exactly your situation.

Protecting Your Investment Legacy

Your investment portfolio represents years of disciplined saving and smart financial decisions. Ensuring it passes to the right people, in the most tax-efficient way, requires more than just picking good stocks—it requires coordinated estate planning.

Key takeaways:

Different investment accounts follow different inheritance rules: ISAs pass via your will, pensions pass via expression of wish forms, stocks and shares pass via your will unless held in ISA or pension wrappers
Your will and your investment account beneficiary forms must work together—conflicts create costly problems for your family
The April 2027 pension inheritance tax changes mean reviewing your estate plan now, not in 2026, could save thousands
Unmarried couples and blended families face higher risks and must be especially proactive about coordinating documents
Investment platforms won't manage this coordination for you—it's your responsibility, and it's simpler than you think

The window for planning is now. With pensions becoming subject to inheritance tax in 2027, AIM shares losing their full tax relief in 2026, and inheritance tax thresholds frozen while asset values rise, the cost of waiting is only going up.

You don't need to spend £650+ on a solicitor or navigate this alone. WUHLD's online will service lets you create a comprehensive, legally valid will in just 15 minutes for £49.99.

Your will includes:

Residuary estate clause that automatically covers all your ISAs, stocks, shares, and investment accounts
Clear instructions for your executors on managing and distributing your investments
Estate Information Guide to help you inventory your portfolio and coordinate beneficiary forms
Preview your complete will free before paying—no credit card required

Create your will today, then spend an hour next week updating your investment account beneficiaries. Your family's financial security deserves this small investment of time and money.

Preview Your Will Free – No Payment Required

Legal Disclaimer: This article provides general information about how investment accounts pass to beneficiaries under UK law and does not constitute legal advice, tax advice, or financial advice. For advice specific to your individual situation, including tax planning strategies and complex estate arrangements, please consult a qualified solicitor, tax advisor, or independent financial advisor. WUHLD's online will service is suitable for straightforward UK estates; complex situations involving trusts, offshore investments, business partnerships, or estates likely to exceed £2 million may require professional legal advice. Information about the April 2027 pension inheritance tax changes is based on government announcements and consultations as of January 2025; final legislation may differ.

Investment Platform Disclaimer: WUHLD is not affiliated with any investment platform or pension provider mentioned in this article. References to specific platforms are for illustrative purposes only and do not constitute endorsements or partnerships.

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