What Happens to Premium Bonds When Someone Dies in the UK

What Happens to Premium Bonds When Someone Dies in the UK

If someone you love has died and they held Premium Bonds, you may be wondering what happens next. It's a common question — and thankfully, the process is relatively straightforward compared to many other parts of estate administration.

This guide explains what happens to Premium Bonds after a death, how to make a claim, and what you need to know about prize draws during the process.

Do Premium Bonds Still Enter Prize Draws After Death?

Yes — but only for a limited time. Premium Bonds belonging to someone who has died remain eligible for the monthly prize draw for 12 full calendar months after the date of death. This means the deceased's bonds could still win prizes during that period.

After 12 months, the bonds are removed from the draw. Any unclaimed prizes from that window will still be paid out to the estate once the claim is processed.

Who Can Claim Premium Bonds After a Death?

The person responsible for dealing with the estate can claim the Premium Bonds. This is usually:

• The executor named in the will
• The administrator appointed by the court if there was no will

NS&I (National Savings and Investments) will only release the funds to the person who has legal authority to manage the estate.

How to Claim Premium Bonds After a Death

Here is what you need to do, step by step:

Step 1: Let NS&I Know

Contact NS&I to notify them of the death. You can do this:

• Online at nsandi.com using their bereavement form
• By post by writing to NS&I, Glasgow, G58 1SB
• By phone on 08085 007 007

Step 2: Gather the Documents You Will Need

NS&I will typically ask for:

Document	When It's Needed
Death certificate (original or certified copy)	Always
Grant of Probate or Letters of Administration	If the total NS&I holding is over £5,000
The bondholder's Premium Bond holder number	If available
Your identification as executor or administrator	Always

If the total value of NS&I products held by the deceased is £5,000 or under, you may not need a Grant of Probate. NS&I can sometimes release smaller holdings with a simplified process.

Step 3: Decide What to Do With the Bonds

Once NS&I has verified everything, you have two options:

1. Cash in the bonds — the money is paid to the estate
2. Have the bonds re-registered — if a beneficiary named in the will wants to keep them as their own Premium Bonds

Re-registration means the bonds transfer directly to the new holder without being cashed in, which can be useful if the beneficiary wants to stay in the prize draws.

How Long Does the Process Take?

NS&I typically processes bereavement claims within three to four weeks of receiving all the required documents. Delays usually happen when documents are missing or when a Grant of Probate hasn't been issued yet.

If the estate is straightforward and the holding is under £5,000, it can sometimes be resolved even faster.

Do You Pay Tax on Premium Bonds After a Death?

Premium Bond prizes are tax-free — both during the holder's lifetime and after death. The prizes won after death are paid into the estate and remain free of income tax.

However, the value of the bonds themselves forms part of the estate for inheritance tax purposes. If the total estate exceeds the inheritance tax threshold (currently £325,000, or up to £500,000 with the residence nil-rate band), the bonds may contribute to an inheritance tax liability.

What If You Cannot Find the Bond Certificates?

Don't worry. Physical Premium Bond certificates haven't been issued for years, and many older ones have been lost. NS&I can trace holdings using:

• The holder's full name and date of birth
• Their NS&I number (if known)
• Their National Insurance number

You can ask NS&I to run a tracing request if you suspect someone held bonds but you have no paperwork.

Common Questions

Can I keep the bonds running instead of cashing them in? Not indefinitely. After 12 months, the bonds leave the prize draw. You'll need to either cash them in or re-register them to a beneficiary.

What if there are multiple NS&I products? NS&I treats all their products (bonds, savings certificates, income bonds) together. One bereavement claim covers everything.

What if the deceased won a prize but never claimed it? NS&I holds unclaimed prizes and will pay them to the estate during the claims process. It's worth checking the unclaimed prizes tool on the NS&I website.

Getting Help With Estate Administration

Dealing with Premium Bonds is just one small part of managing an estate after someone dies. If you're feeling overwhelmed by the number of tasks involved, GetPassage can help you stay organised — it guides you through every step of death administration, from registering the death to closing the estate.

You don't have to figure it all out alone.