top of page
Search

What Happens to Your Premium Bonds After You Pass Away?

  • Writer: Maplebrook Services
    Maplebrook Services
  • 2 days ago
  • 2 min read

Premium Bonds cannot be directly inherited or transferred into another person’s name.

However, Executors handling the deceased’s estate have two options:


  1. Cash in the Bonds During Probate – The bonds can be sold, and the proceeds added to the estate for distribution to beneficiaries. This is the quickest way to settle the matter.

  2. Retain the Bonds for Up to One Year – The bonds remain eligible for prize draws for 12 months after death. After this period, the Executor or designated beneficiary must contact NS&I to claim any winnings and redeem the bonds. While this approach may delay the inheritance, it could potentially yield additional prize money.


Executors should consult beneficiaries to determine the most suitable option.



Claiming Premium Bonds After Death


Premium Bonds can be claimed by an Executor, next of kin, or nominated beneficiary. NS&I requires the following information:


  • The deceased’s name, address, date of birth and National Insurance number.

  • A copy of the death certificate.


If Premium Bonds are left unclaimed for over 12 months, they are transferred to NS&I’s Unclaimed Premium Bonds Account and can be claimed at any time.


Cashing in Premium Bonds After Death


If the Executor opts to redeem the bonds, they must submit a claim to NS&I, providing proof of death and any other required documents. The funds will then be added to the estate and distributed according to the Will or intestacy laws.


Jointly Held Premium Bonds


In cases where bonds are jointly held, the surviving bondholder automatically becomes the sole owner upon proof of death.


Tax Considerations


Any winnings from Premium Bonds form part of the deceased’s estate and may be subject to Inheritance Tax. The Executor must account for these holdings when calculating the estate’s value.


Probate and Premium Bonds


Whether probate is required depends on the bond value. If the deceased held more than £5,000 in Premium Bonds, probate will be necessary. The Executor must provide NS&I with a Grant of Probate (or Letters of Administration if there is no Will) before claiming or transferring the bonds.


Updating Your Premium Bonds Information


Keeping Premium Bond records up to date ensures that any prizes are correctly distributed. Inform NS&I of any changes to your name, address, or personal details.

 

Final Thoughts


Understanding how Premium Bonds are managed after death can help ensure a smooth process for your beneficiaries. Keeping accurate records and outlining your wishes in a Will can prevent delays and complications in administering your estate.


Do You Need Help?


If you’d like help with or understanding the probate process, Maplebrook Services is here to assist. Please do not hesitate to contact us for advice.


📞 Call us: +357 26600780


Join us for our Free Life Admin Clinic on Wednesday 30 April 2025, from 10:30 AM – 3:00 PM.

bottom of page